YEAR-END RESULTS

DENVER, Colorado -- Tipperary Corporation (AMEX-TPY), an independent energy company, today announced results for its fiscal year and fourth quarter ended September 30, 2000.

The Company reported net income for fiscal 2000 of $43,000, or less than one cent per share, on revenue of $8.6 million compared with a net loss of $9.3 million, or 63 cents per share, on revenue of $7.9 million a year ago.

For the fourth fiscal quarter, Tipperary reported a loss of $1,495,000, or 6 cents per share, on revenue of $878,000 compared with a net loss of $273,000, or 2 cents per share, on revenue of $2.5 million in the fourth quarter a year ago. Sales of a significant portion of the Company's domestic producing properties were primarily responsible for the decrease in revenue reflected in the quarter. In addition, the loss for the quarter includes a $557,000 non-cash impairment of prepaid drilling costs.

The improvement in Tipperary's net income for fiscal 2000 reflected gains of approximately $4 million from the aforementioned sales of domestic assets and higher oil and gas prices. The net loss for the fiscal year ended September 30, 1999 included a $5.7 million non-cash write-down of domestic properties, which resulted from a significant decline in oil and gas prices in the period.

Total gas production during the fiscal year was 2,317,000 Mcf compared with 2,087,000 Mcf a year ago. For the quarter, gas production was 478,000 Mcf compared with 547,000 Mcf in the prior-year quarter. Domestic production declines resulting from asset sales were partially offset by increased sales from the Comet Ridge coalbed methane project in Australia. During fiscal 2000, the Company's revenue from the Comet Ridge project was approximately $2,033,000 on sales of 1,606,000 Mcf. In the fourth quarter of fiscal 2000, gas production sold in Australia was 444,000 Mcf generating revenue of $536,000.

For fiscal 2000, oil production volumes were 192,000 barrels compared with 352,000 barrels in the prior year. Oil production volumes in the fourth quarter were 8,000 barrels versus 83,000 barrels in the same period last year. The volumes decreased as a result of the previously discussed sales of producing properties.

David Bradshaw, Tipperary's president and CEO, said, "As expected, sales of domestic properties caused a significant decrease in revenues for the quarter. However, redeployment of capital into coalbed methane projects should result in greater opportunities for growth in the future. Reserve growth in Australia continues to be encouraging and we have made substantial investments in new exploratory acreage in the U.S. "

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 holds a 62.25% interest in southeastern Queensland's Comet Ridge coalbed methane project and other exploration permits in Queensland. Domestically, Tipperary holds a 49% interest in the 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, 2000, for meaningful cautionary language disclosing why actual results may vary materially from those anticipated by management.