DENVER, Colorado --Tipperary Corporation (AMEX-TPY), an independent energy company, today announced that its net proved reserve volumes increased 73% to an estimated 270 billion cubic feet of gas equivalent (Bcfe) as of its fiscal year ended September 30, 2000, up from 156 Bcfe at fiscal year-end 1999. Gas reserves from the Company's interest in the Comet Ridge coalbed methane project in Queensland, Australia more than doubled from 131 Bcf to 265 Bcf primarily as a result of development drilling and acquisitions of additional interests during the fiscal year.

Reserve volumes as of September 30, 2000 include 5.2 Bcfe of oil and gas reserves from domestic properties. These U.S. volumes include 2.9 Bcf of gas and 379,000 barrels (2.3 Bcfe) of oil from properties in east Texas. At the end of fiscal 1999, the Company reported 24.5 Bcfe of reserves from its U.S. properties, which was comprised of 9.8 Bcf of gas and 2.45 million barrels (14.7 Bcfe) of oil. The decrease in U.S. reserves was due to the sale of approximately 75% of the Company's domestic oil and gas assets during the fiscal year. A year ago, the Company redirected its focus toward coalbed methane properties and has subsequently sold all of its conventional oil and gas properties except those in the West Buna field of east Texas.

The 10% discounted present value of estimated future net revenues before income taxes, as of September 30, 2000, totaled $104 million compared to $83 million as of September 30, 1999, an increase of 25%. The value of the Australian reserves increased to $94 million from $58 million, while the value of the U.S. reserves decreased to $10 million from $25 million, due to the previously mentioned property sales.

David Bradshaw, Tipperary's president and CEO, stated, "We are beginning to see significant increases in the proved reserves of the Comet Ridge project in Australia. It should be noted that this is still based upon a minimal amount of drilling, and we believe there is room for further substantial increases if development drilling continues to be successful."

In other news, the Company announced that it is changing its fiscal year end from September 30 to December 31. This fiscal year end change was effective October 1, 2000. A transition report on Form 10-KSB covering the transition period from October 1, 2000 through December 31, 2000 will be filed on or before March 31, 2001.

Tipperary Corporation is an independent energy company focused primarily on exploration for and production of coalbed methane. Headquartered in Denver, Colorado, Tipperary owns 90% of Queensland, Australia-based Tipperary Oil & Gas (Australia) Pty Ltd. This subsidiary, which holds a 62.25% interest in southeastern Queensland's Comet Ridge coalbed methane project, also owns various exploration permits in Queensland. Domestically, Tipperary holds a 49% 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 Form 10-K for the Fiscal Year Ended September 30, 1999, for meaningful cautionary language disclosing why actual results may vary materially from those anticipated by management.