SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 11, 1995
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TIPPERARY CORPORATION
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(Exact name of registrant as specified in its charter)
Texas 1-7796 75-1236955
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(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
633 Seventeenth Street, Suite 1550
Denver, Colorado 80202
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (303) 293-9379
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Not Applicable
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(Former name or former address, if changed since last report)
<PAGE>
ITEM 1. Changes in Control of Registrant
Not Applicable
ITEM 2. Acquisition or Disposition of Assets
Not Applicable
ITEM 3. Bankruptcy or Receivership
Not Applicable
ITEM 4. Changes in Registrant's Certifying Accountant
Not Applicable
ITEM 5. Other Events
Tipperary Corporation hereby incorporates by reference into this Form 8-K
the attached Press Release dated August 14, 1995 announcing third quarter and
nine-month results and a declaratory judgment action initiated against Tipperary
Corporation and another party by the operator of the Comet Ridge Project in
Queensland, Australia.
ITEM 6. Resignations of Registrant's Directors
Not Applicable
ITEM 7. Financial Statements and Exhibits
Not Applicable
ITEM 8. Change in Fiscal Year
Not Applicable
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
TIPPERARY CORPORATION
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(Registrant)
Date: August 17, 1995 By: /s/ Carter G. Mathies
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Carter G. Mathies
President, Chief Executive Officer
and Chairman of the Board of Directors
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<PAGE>
Tipperary Corporation
633 Seventeenth Street
Suite 1550
Denver, Colorado 80202
FOR IMMEDIATE RELEASE: NEWS
August 14, 1995 AMEX-TPY
TIPPERARY CORPORATION ANNOUNCES
THIRD QUARTER AND NINE-MONTH RESULTS
DENVER, Colorado -- Tipperary Corporation (AMEX-TPY), an independent oil and gas
company, today announced results for its third quarter and nine-month period
ended June 30, 1995.
Revenue from continuing operations in the third quarter decreased 10% to $3.13
million compared to $3.49 million in the same quarter a year ago. The Company
reported a net loss for the quarter of $143,000, or 1 cent per share, compared
to net income of $321,000, or 3 cents per share, last year.
Through nine months, revenue from continuing operations decreased 14% to $9.2
million versus $10.7 million in the same period last year. Net loss was
$867,000, or 8 cents per share, compared to net income of $3.7 million, or 33
cents per share, for the nine-month period last year. Last year's nine-month
period includes the cumulative effect of a change in the Company's method of
accounting for income taxes of $3.0 million, or 27 cents per share.
The decrease in earnings for the quarter and nine-month period was attributed to
the decrease in revenues and to increased interest expense, depreciation,
depletion and amortization ("DD&A"), and to deferred tax benefits recorded in
the prior periods.
Tipperary's 1995 production levels for both oil and gas continue to be below
last year's figures due to natural declines in production and sales of producing
properties. Third quarter oil volumes decreased 10% to 145,000 barrels versus
161,000 barrels in the same quarter last year. Gas production during the
quarter decreased 21% to 493,000 Mcf compared to 627,000 Mcf a year ago.
Carter Mathies, chairman and CEO, said, "As we have reported throughout the
year, we are utilizing cash flows from our proved reserves to fund exploration
projects in Australia and in the Williston Basin of Montana. As a result,
production declines will likely continue until these exploration projects mature
to a producing status."
In other developments, the Company announced that a declaratory judgment action
had been initiated in the District Court of Midland County, Texas, against it
and another party by Tri-Star Petroleum Company, the operator of the Company's
Comet Ridge Project in Queensland, Australia. The suit alleges that the Company
and the other party breached the existing operating agreement by failing to
notify the operator of their participation in, and make payment for certain
seismic operations. The suit asks the court to find that the alleged breach
causes the Company to forfeit all of its interest in the Comet Ridge Project,
except for its interest in existing Project wells on which the Company already
earned an interest.
Continued on page 2
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Page 2 of 2
The Company and litigation counsel have reviewed the complaint, and believe the
suit is without merit. Mathies said, "It is truly unfortunate that the
operator, with a minor interest of approximately 1% in the Project, is
attempting to seize the rights to the largest single interest in the Project
(30% to the Company), over a routine seismic invoicing procedure involving less
than $120,000 to the Company. The Company has spent approximately $4.2 million
in defining and developing the Project, and we will vigorously defend our
title." The Company intends to pursue available counterclaims, including the
removal of the operator.
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 exploration interests in Queensland,
Australia.
EARNINGS RECAP
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
June 30, June 30,
1995 1994 1995 1994
<S> <C> <C> <C> <C>
Revenue from continuing
operations $3,132,000 $3,490,000 $9,236,000 $10,697,000
Income (loss) from:
Continuing operations (143,000) 23,000 (867,000) 906,000
Discontinued operations -- (2,000) -- (204,000)
Change in accounting
method -- -- -- 3,000,000
Net income (loss) $ (143,000) $ 321,000 $ (867,000) $ 3,702,000
Primary income (loss) per
common share:
Continuing operations $ (.01) $ .03 $ (.08) $ .08
Discontinued operations -- -- -- (.02)
Change in accounting
method -- -- -- .27
Net income (loss) $ (.01) $ .03 $ (.08) $ .33
Weighted average shares
outstanding 11,188,000 11,048,000 11,188,000 11,211,000
</TABLE>
OPERATING DATA
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
June 30, June 30,
1995 1994 1995 1994
<S> <C> <C> <C> <C>
Net oil production (barrels) 145,000 161,000 431,000 503,000
Net gas production (Mcf) 493,000 627,000 1,652,000 1,936,000
Avg. oil price per barrel $ 16.45 $ 14.93 $ 15.57 $ 14.39
Avg. gas price per Mcf $ 1.43 $ 1.64 $ 1.45 $ 1.67
</TABLE>
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CONTACTS:
Tipperary Corporation or Pfeiffer Public Relations, Inc.
David L. Bradshaw, COO Geoff High
303/293-9379 303/393-7044
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