Tipperary Corporation Announces Initial Gas Sales in Colorado

Tipperary Corporation Announces Initial Gas Sales in Colorado



DENVER, May 27  /PRNewswire-FirstCall/ -- Tipperary Corporation (AMEX:TPY), an
independent energy company, today announced that it recently commenced gas
sales from its Frenchman project in Phillips County, Colorado. On May 22,
Tipperary began selling 1 million cubic feet of gas per day (Mmcfd), and
expects to increase volumes to 1.7 Mmcfd once two additional wells are
connected in one-to-two weeks.  At current gas prices of approximately $6 per
Mcf, the 1.7 Mmcfd is expected to generate revenue (after royalties) of
approximately $250,000 per month.  The wells are located in the newly
designated South Holyoke Field, where Tipperary has a 100% working interest and
a net revenue interest of approximately 85%.

In the Republican project area just to the south of the Frenchman project,
Tipperary is a 20% partner with The Houston Exploration Company, which is
maintaining a continuous drilling program in the fractured Niobrara.  The
companies are in the process of completing 35 wells and constructing the
gathering system.  Tipperary expects initial gas sales from Republican in
August 2005.

In other news, the Company reported that Tipperary's majority shareholder,
Slough Estates, USA, is continuing the previously announced process of
divesting its Tipperary shares.  The planned sale is part of Slough's strategy
of divesting its non-core assets.  The divestiture may involve modification of
current Tipperary loan terms or refinancing of the Company's debt to allow
repayment of debt owed to Slough and removal of Slough's guarantee of
Tipperary's Australian bank facility.

David Bradshaw, Tipperary CEO, stated, "We continue to actively develop our
U.S. prospects and are pleased to report initial gas sales in eastern Colorado.
 We are also continuing to cooperate with Slough in its plans to sell its 54%
interest in Tipperary Corporation and its 10% interest in Tipperary Oil & Gas
(Australia) Pty Ltd."

Tipperary Corporation is an independent energy company focused primarily on
exploration for, and production of, coalseam and conventional natural gas.
Headquartered in Denver, Colorado, Tipperary has producing operations in
Queensland, Australia.  Together with its affiliates, Tipperary holds a 75.25%
capital interest and a 71.7% pre-royalty revenue interest in southeastern
Queensland's Comet Ridge coalseam gas project totaling approximately 1,230,500
acres and holds other exploration permits in Queensland totaling approximately
77,000 acres.  Domestically, Tipperary holds interests in several exploration
projects in Colorado and Nebraska covering approximately 623,000 acres.

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 year ended December 31, 2004, for meaningful
cautionary language disclosing why actual results may vary from those
anticipated by management. 

DATASOURCE: Tipperary Corporation



CONTACT:  David L. Bradshaw, CEO Tipperary Corporation, [phone];

or Geoff High of Pfeiffer High Investor Relations, Inc., [phone], for

Tipperary Corporation



Web site:  http://www.pfeifferhigh.com/ 

Web site:  http://www.tipperarycorp.com/ 

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