DENVER, Colorado --Tipperary Corporation (AMEX: TPY), an independent energy company, today announced the completion of its recent rights offering. Net proceeds of the offering are expected to be $25.6 million. Approximately $17.5 million of the proceeds will be used to pay down debt held by Slough Estates USA, Inc. (Slough), Tipperary's largest shareholder and a participant in the offering. Approximately $8 million will be used to fund additional exploration and development activities and for general corporate purposes.

Tipperary shareholders of record as of October 24, 2001, were eligible to participate in the offering, which expired November 30, 2001. Shareholders received one right for every 1.551 shares of common stock held, and were able to purchase the stock for $1.85 per share. The Company expects to issue approximately 13,823,000 additional shares of common stock. The total outstanding shares of common stock is expected to be approximately 38,971,000. Majority shareholder Slough will own approximately 61% of the Company's outstanding shares.

David Bradshaw, president and CEO, stated, "The completion of this rights offering represents a key strategic milestone for the Company. In addition to a significant reduction of our long-term debt, the offering has provided us with capital necessary to pursue our near-term operational objectives, including the advancement of our Australia coalbed methane project. We are very pleased with the support we have received from shareholders who participated in this offering."

Tipperary Corporation is an independent energy company focused primarily on exploration for and production of coalbed methane and conventional natural gas. Headquartered in Denver, Colorado, Tipperary owns 90% of Queensland, Australia-based Tipperary Oil & Gas (Australia) Pty Ltd. This subsidiary, which holds a 65% interest in southeastern Queensland's Comet Ridge coalbed methane project, also holds other exploration permits in Queensland totaling over 1.5 million acres. Domestically, Tipperary operates and holds a 50% interest in a coalbed methane exploration project with various leasehold interests that cover an area of approximately 74,000 acres in Moffat County, Colorado. Tipperary also owns prospects covering an additional 180,000 acres in Colorado and has an interest in the 38,000-acre Hanna Draw coalbed methane exploration project in Wyoming.

Information herein contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which can be identified by words such as "may," "will," "expect," "anticipate," "estimate" or "continue," or comparable words. In addition, all statements other than statements of historical facts that address activities that Tipperary expects or anticipates will or may occur in the future are forward-looking statements. Readers are encouraged to read the SEC reports of Tipperary, particularly its Annual Report on Form 10-KSB(A) for the Transition Period Ended December 31, 2000, for meaningful cautionary language disclosing why actual results may vary materially from those anticipated by management.