DENVER, Colorado -- Tipperary Corporation (AMEX-TPY), an independent oil and gas company, today announced results for the second fiscal quarter and six-month period ended March 31, 1999.

Second quarter revenue was $1.61 million compared with $2.24 million in the same quarter a year ago. The Company reported a net loss of $1,108,000, or 7 cents per share, compared with a net loss of $705,000, or 5 cents per share, in the second fiscal quarter last year.

Through six months, revenue was $3.36 million versus $4.81 million in the same period last year. Tipperary reported a net loss of $8,444,000, or 59 cents per share, compared with a net loss of $999,000, or 8 cents per share, for the six-month period last year.

Decreased revenue for the quarter and six-month period was attributable to lower oil and gas prices and decreases in oil production volumes. The increased net loss was also attributable to lower oil and gas prices and a decrease in oil production. The net loss for the six-month period included the first-quarter $5.7 million write-down of the Company’s domestic properties, which resulted from the significant decline of oil and gas prices.

Oil production volumes in the second quarter were 84,000 barrels versus 103,000 barrels in the same quarter last year. Through six months, oil production volumes were 182,000 barrels versus 208,000 barrels in the prior year period. The volumes decreased as a result of production curtailments in response to lower energy prices and to naturally declining production rates.

Total gas production during the quarter was 521,000 Mcf compared with 370,000 Mcf a year ago. For the six-month period, gas production was 1,029,000 Mcf compared with 706,000 in the prior year period. Tipperary’s increased gas production volumes in the second quarter and the six-month period were due to the contribution of sales from the Comet Ridge coalbed methane project in Australia, which commenced during the second quarter of fiscal 1998. The Company’s revenue from the Comet Ridge project was $240,000 on sales of 185,000 Mcf in the second quarter and $463,000 on sales of 366,000 Mcf in the six-month period ended March 31, 1999.

David Bradshaw, president and CEO, said, "Although the quarter’s domestic performance was negatively impacted by severely depressed oil prices, we are pleased with the increasing gas sales in Australia. Subsequent to the end of the quarter, we have commenced an eight-well drilling program in Australia. Additionally, we have seen a substantial increase in domestic oil and gas prices."

In addition to its interest in the Australia coalbed methane 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 Annual Report on 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.