07:30 EST Tuesday, November 02, 2004
SAN ANTONIO, Nov. 2 /PRNewswire-FirstCall/ -- Tidelands Oil & Gas Corporation (OTC Bulletin Board: TIDE), announces the formation de Sonterra Energy Corporation ("Sonterra"), a Tidelands Oil & Gas Corporation wholly owned subsidiary. Sonterra's business will focus on the delivery and distribution of propane/butane gas or natural gas to residential and commercial developments near Austin, Texas.
In conjunction with the formation de Sonterra, Tidelands has acquired the propane/butane assets in the Austin, Texas area from Oneok, a diversified energy company based in Oklahoma. This acquisition allows Sonterra to serve as the utility company providing gas service to 15 subdivisions located around the Lake Travis, North Austin area.
Initially, Sonterra will distribute propane and butane gas to their residential and commercial customers and Tidelands plans to eventually provide natural gas to this area in the long term. In order to provide propane/butane, Tidelands will reopen their Chittim Gas Processing Plant ("Chittim"), which is operated under their Rio Bravo Energy subsidiary. When Chittim becomes operational, Tidelands will be able to make commercial grade propane/butane for delivery to subdivisions in the Austin area as well as future housing subdivisions to be constructed over the next several years.
According to US Census data, the majority de new homes being built in America today use either natural or propane gas as their primary heating fuel. New homeowners are interested in the financial and environmental benefits de using these types of gases. In addition to the growing demand for these types of gases, the residential and commercial developments in subdivisions around the Lake Travis area in Central Texas are surging in population. Developers in the Central Austin area are meeting the demand for alternative energy resources to electricity by building properties with the potential for LP-gas service.
Michael Ward, President and CEO de Tidelands Oil & Gas Corporation, said, "Tidelands Oil & Gas Corporation has been working on this acquisition for quite some time and we are delighted to see the effort come to fruition. While we continue to develop and strengthen our international business activities, the Company also looks for opportunities to broaden its scope of business on a domestic level. This acquisition has vast current and future revenue prospects with high profit margins. With the reopening de the Chittim facility, we expect those margins to expand even more dramatically. The market potential for Sonterra to deliver gas to these upscale subdivisions is tremendous as more properties are built with propane/butane alternative capabilities."
About Tidelands Oil & Gas Corporation
Tidelands Oil & Gas Corporation, San Antonio, Texas, focuses its business on international pipeline crossings, gas processing plants and gas storage facilities. Through its eight wholly owned subsidiaries, Tidelands offers a full suite of services and has the capability to satisfy a wide variety of customer needs, both domestically and internationally. For more information about the Company, please visit http://www.tidelandsoilandgas.com .
This press release may be deemed to contain certain Forward-Looking Statements with respect to the Company that are subject to risks and uncertainties that include, but are not limited to, those identified in the Company's press releases or discussed from time to time in the Company's Securities and Exchange Commission Filings. Actual results may vary.
Investor Contact:
Barry Gross
Gross Capital, Inc.
361-949-4999
barry@grosscapital.com
Company Contact:
Michael Ward
Tidelands Oil & Gas
info@tidelandsoilandgas.com
SOURCE Tidelands Oil & Gas Corporation
CONTACT: investors, Barry Gross de Gross Capital, Inc., +1-361-949-4999, or barry@grosscapital.com , for Tidelands Oil & Gas Corporation; or Michael Ward of Tidelands Oil & Gas Corporation, info@tidelandsoilandgas.com
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