DENVER, Colorado — Tipperary Corporation (AMEX-TPY), an independent oil and gas company, today announced results for its fiscal year and fourth quarter ended September 30, 1998.

The Company reported a net loss for its fiscal year of $6.4 million, or 49 cents per share, on revenue of $9.1 million compared with net income of $472,000, or 4 cents per share, on revenue of $12.9 million a year ago. The decrease in revenue was attributable to significantly lower oil and gas prices as well as to lower production volumes. The net loss for fiscal 1998 included a $1.6 million write-down of the Company's deferred tax asset, also attributable to the lower prices.

Tipperary reported an operating loss of $3.4 million compared with operating income of $1.9 million last year. The operating loss in fiscal 1998 included a $1.4 million write-down of oil and gas properties which was attributable to lower oil and gas prices.

Total proved oil and gas reserves as of September 30, 1998, were 2.4 million barrels of oil and 132 Bcf of gas compared with 2.9 million barrels of oil and 128 Bcf of gas as of September 30, 1997. The present value of future net cash flows from oil and gas properties, discounted at 10%, decreased to $46.9 million as of September 30, 1998, from $54.6 million a year ago.

The Company reported a fourth fiscal quarter net loss of $1.6 million, or 13 cents per share, on revenue of $2 million, compared with a net loss of $104,000, or less than one cent per share, on revenue of $2.8 million in the fourth fiscal quarter a year ago.

The fourth quarter net loss included a $422,000 write-down of deferred financing costs related to Tipperary's efforts during fiscal 1997 to raise capital for the Company's interest in the Comet Ridge coalbed methane project in Queensland, Australia. As previously reported, the Company received debt and equity financing of $11.7 million in December 1998 from Slough Estates USA Inc., the Company's largest shareholder. Tipperary will use $6 million of the debt financing to further develop the Comet Ridge Project.

David Bradshaw, Tipperary's President and CEO, said, "We are of course disappointed with the extremely low oil prices which have persisted for almost a year. The negative effects of such prices to Tipperary and our industry are obvious. At the same time, we are very pleased with our recent financing transaction and the progress we are making with the Comet Ridge coalbed methane project in Australia. We are looking forward to the January commencement of a new gas contract and an eight-well development drilling program."

In addition to its interest in the Comet Ridge Project, Denver-based Tipperary has producing properties primarily in the Rocky Mountain region and in the Permian Basin of west Texas and southeast New Mexico.

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, 1998, for meaningful cautionary language disclosing why actual results may vary materially from those anticipated by management.