And Termination of Hanna Basin Project Dewatering Operations
DENVER, June 10 /PRNewswire-FirstCall/ -- Tipperary Corporation
(Amex: TPY), an independent oil and gas company, today announced that the
Company has closed the previously announced transactions with
Delta Petroleum Corporation (Nasdaq: DPTR) and has subsequently acquired
additional interests in the Comet Ridge coalbed methane project in Queensland,
Australia. The Company also announced that it has agreed with Williams
Production RMT Company to cease dewatering activities on the Hanna Basin
project in Wyoming.
On May 24, 2002, the Company closed two transactions with Delta.
Tipperary sold Delta all of its undivided interests in the West Buna field in
east Texas, and purchased all of Delta's undivided interests in the Comet
Ridge project. Tipperary also received the option to purchase Delta's
interests in several other Authorities to Prospect (ATPs) in Queensland under
certain conditions. With the sale of the West Buna property, all of
Tipperary's proved reserves are now in Queensland, Australia.
Tipperary received $4.1 million in cash proceeds from the sale of the West
Buna property in east Texas and purchased from Delta a 5% interest in the
Comet Ridge project on ATP 526 for a purchase price of $5.25 million. The
purchase price included $4.8 million in cash and 250,000 unregistered shares
of the Company's common stock valued at $450,000. Tipperary also assumed up
to $600,000 of obligations owed by Delta related to the Comet Ridge project
and received an option to purchase interests of 2.5% or less in each of six
other ATPs in the area that have no proved reserves. The term of the option
depends on certain events but does not extend beyond one year. The Company
expects the sale of the West Buna property to result in a loss of
approximately $1.3 million.
On June 3, 2002, the Company also acquired from non-affiliated private
parties four separate interests in the Comet Ridge project, which total 3%.
These interests were acquired for a combined cash purchase price of
approximately $2.4 million, and elevate the Company's total capital-bearing
interest in the Comet Ridge project up to 73%.
In other news, Tipperary and Williams Production Company RMT Company, the
operator of the Hanna Basin project, have decided to terminate dewatering
operations. As previously reported, Tipperary's management is disappointed
with dewatering results and is considering divestment of its interest in the
project. The Company's remaining domestic activities consist of several
exploration projects in Colorado.
David Bradshaw, Tipperary CEO, said, "We are pleased to have increased our
interest in the Comet Ridge project, especially in light of the anticipated
increase in demand for gas in Queensland and eastern Australia. We continue
to see positive results from development drilling and plan to begin additional
exploratory drilling on the ATP in the next several weeks."
Tipperary Corporation is an independent energy company focused primarily
on exploration for, and production of, coalbed methane and conventional
natural gas. Headquartered in Denver, Colorado, Tipperary has producing
operations in Queensland, Australia. Together with its affiliates, Tipperary
holds a 73% interest in southeastern Queensland's Comet Ridge coalbed methane
project and holds other exploration permits in Queensland totaling
approximately 1.5 million acres. Domestically, Tipperary holds interests in
several exploration projects in Colorado and Wyoming covering approximately
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"
"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, including estimates of
unproved oil and gas reserves and values, are forward-looking statements.
Readers are encouraged to read the SEC reports of Tipperary, particularly its
Annual Report on Form 10-KSB for the Year Ended December 31, 2001, for
meaningful cautionary language disclosing why actual results may vary
materially from those anticipated by management.
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SOURCE Tipperary Corporation
/CONTACT: David L. Bradshaw, CEO of Tipperary Corporation,
+1-303-293-9379; or Geoff High of Pfeiffer High Public Relations, Inc.,
+1-303-393-7044, email@example.com, for Tipperary Corporation/
CO: Tipperary Corporation; Delta Petroleum Corporation
ST: Colorado, Wyoming, Australia
-0- Jun/10/2002 18:02 GMT
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