Denver-based Tipperary Corp. said last week that it has closed its previously announced transactions with Delta Petroleum Corp. and has subsequently acquired additional interests in the Comet Ridge coalbed methane project in Queensland, Australia. In addition, Tipperary said it has agreed with Williams Production RMT Co. to cease dewatering activities on the Hanna Basin project in Wyoming.

Tipperary said it has 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 prospects in Queensland under certain conditions. With the sale of the West Buna property, all of Tipperary’s proved reserves are now in Queensland.

The company said it 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 Authorities to Prospect (ATP) 526 for $5.25 million. The purchase price included $4.8 million in cash and 250,000 unregistered shares of Tipperary’s common stock valued at $450,000. As part of the deal, Tipperary 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 company said it expects the sale of the West Buna property to result in a loss of approximately $1.3 million.

On June 3, 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 interest in the Comet Ridge project up to 73%.

Regarding the Hanna Basin project, Tipperary and Williams Production Co. said they have decided to terminate dewatering operations. As previously reported, Tipperary’s management said it is disappointed with dewatering results and is considering divestment of its interest in the project. Tipperary’s only remaining domestic activities consist of several exploration projects in Colorado.

“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,” said David Bradshaw, Tipperary CEO. “We continue to see positive results from development drilling and plan to begin additional exploratory drilling on the ATP in the next several weeks.”

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