DENVER, Colorado -- Tipperary Corporation (AMEX-TPY), an independent oil and gas company, today announced results for its third fiscal quarter and nine-month period ended June 30, 1999.

Third quarter revenue was $2.06 million compared with $2.22 million a year ago. The Company reported a net loss of $578,000, or 4 cents per share, compared with a net loss of $3.75 million, or 29 cents per share, in the third quarter last year. The net loss for the third quarter of fiscal 1998 included a $1.4 million write-down of the Company's domestic oil and gas properties as well as a $1.6 million write-down of the deferred tax asset based on low oil and gas prices.

Through nine months, revenue was $5.42 million versus $7.03 million in the same period a year ago. The Company reported a net loss of $9.02 million, or 62 cents per share, compared with a net loss of $4.75 million, or 36 cents per share, for the nine-month period last year. The net loss was partially attributable to decreased domestic production and to lower oil and gas prices during the first six months of the year. The net loss also 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.

Decreased revenue for both the quarter and nine-month period was attributable to decreased domestic oil and gas production. Low oil and gas prices in the prior fiscal quarters also contributed to decreased revenues for the nine-month period.

Domestic oil production volumes in the quarter were 87,000 barrels versus 111,000 barrels in the same quarter last year. Domestic gas production during the quarter was 256,000 Mcf compared with 333,000 Mcf a year ago. Through nine months, oil production volumes were 269,000 barrels versus 319,000 barrels for the same period a year ago. Tipperary's domestic gas production volumes for the nine-month period were 918,000 Mcf compared with 983,000 Mcf in the prior year period. Both oil and gas volumes decreased due to production curtailments in response to lower energy prices, and to naturally declining production rates.

Increased gas sales volumes from the Company's Comet Ridge project in Queensland, Australia during the third quarter partially offset the decrease in equivalent units of domestic oil and gas production. During the nine month period, the increase in volumes sold by the Company in Australia more than offset the decrease from the prior year period in equivalent units of domestic oil and gas production. Total gas production from Comet Ridge advanced 99% to 255,000 Mcf during the third quarter of fiscal 1999 compared with 128,000 Mcf a year ago. Through nine months, gas volumes sold in Australia were 621,000 Mcf compared with 184,000 Mcf in the same period last year. Gas sales from the Comet Ridge project commenced during the second quarter of fiscal 1998 and have increased substantially as a result of a five-year gas sales contract that began in January 1999.

David Bradshaw, Tipperary's president and CEO, said, "We are pleased to have ramped up our Australia gas production, and that we have further room for increases under our existing sales contract. We continue to receive inquiries from companies in Queensland that are interested in purchasing large quantities of gas for new projects. Additionally, we are pleased to have seen the steady increase in domestic oil and gas prices over the last few months."

In other news, during the third quarter, Tipperary launched its corporate website to provide financial information and news to shareholders and other interested parties. The Company's website can be found at http://www.tipperarycorp.com.

"With increased use of the Internet, it benefits both the Company and the public to provide information using this more efficient method. In addition to providing information more rapidly to a wider audience, we will reduce production costs associated with our quarterly and interim reports, which we have suspended," Bradshaw said. Paper copies of Company reports and news may still be received by contacting the Company and asking for investor relations.

In addition to its interest in the Australia coalbed methane project, Denver-based Tipperary has producing properties 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.