DENVER, Colorado -- Tipperary Corporation (AMEX-TPY), an independent oil and gas company, today announced results for the third quarter and nine-month period ended June 30, 1998.

Third quarter revenue was $2.22 million compared with $3.02 million in the same quarter a year ago. The Company reported a net loss of $3.75 million, or 29 cents per share, compared with a net loss of $587,000, or 4 cents per share, in the third quarter last year.

Through nine months, revenue was $7.03 million versus $10.2 million in the same period last year. Net loss was $4.75 million, or 36 cents per share, compared with net income of $576,000, or 4 cents per share, for the nine-month period last year.

The decrease in revenue for both the quarter and nine-month period was attributable primarily to lower oil and gas prices and, to a lesser extent, decreases in production volumes.

The Company's net losses were attributable to lower oil and gas prices and to a $1.4 million write-down of the Company's U.S. oil and gas properties and a $1.6 million write-down of the deferred tax asset reported in both the quarter and nine months ended June 30, 1998. These write-downs were attributable to lower oil and gas prices as of June 30, 1998. Oil and gas prices as of June 30, 1998 were approximately 30% and 20% lower, respectively, than those at September 30, 1997.

Oil production volumes in the quarter were 111,000 barrels versus 117,000 barrels in the same quarter last year. Domestic gas production during the quarter was 333,000 Mcf compared with 400,000 Mcf a year ago. Through nine months, oil production volumes were 319,000 barrels versus 370,000 barrels in the prior year period. Gas production volumes in the United States were 983,000 Mcf compared with 1,161,000 Mcf in the prior year period.

The volumes decreased due to the sale of producing properties during the first quarter and to naturally declining production rates.

David Bradshaw, Tipperary's president and CEO, said, "Obviously our industry has been hit hard by the decline in oil prices, which now stand at 12 year lows, and by declining gas prices as well. We do feel that these prices will begin to recover during the next few months. In the meantime, we are pleased with our increasing gas sales in Australia and our efforts to raise additional capital. We believe there will be increasing recognition that commodity prices are at levels that will not prevail over the long term, and that oil and gas stocks are becoming an attractive value play."

Tipperary's oil and gas operations are based primarily in the Rocky Mountain region and in the Permian Basin of west Texas and southeast New Mexico. Headquartered in Denver, Tipperary also has a major interest in a coalbed methane project in Queensland, Australia.

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, 1997, for meaningful cautionary language disclosing why actual results may vary materially from those anticipated by management.