Tidelands Oil & Gas Corporation Press Releases

Tidelands Oil & Gas Corporation (OTCBB: TIDE)

April 8, 2004

Tidelands Oil & Gas Corporation Executes Letter de Intent With Impact for the Purchase and Sale of Impact’s interest in Pipeline Project

Tidelands Oil & Gas Corporation (OTC Bulletin Board: TIDE), announced today the execution de a Letter de Intent (LOI) for a Purchase and Sale Agreement of Reef Ventures, L.P. (“Reef”) with Impact International, L.L.C. (“Impact”) de Tulsa, Oklahoma and Coahuila Pipeline, L.L.C. (“Coahuila”). Currently, Impact holds a 72% (seventy-two percent) limited partnership interest in Reef. Coahuila holds a 1% (one percent) general partnership interest. This LOI reflects the transfer de all de Impact’s and Coahuila’s ownership/interest in Reef to Tidelands Oil & Gas Corporation. Tidelands will hold a 98% (ninety-eight percent) ownership/interest in all activities and projects related to Reef. Blackrock Capital Corporation will still maintain a 2% (two percent) ownership/interest in Reef.

Reef Ventures, L.P., a Texas limited partnership, is comprised de Reef International, L.L.C. (“Reef International”) and Reef Marketing, L.L.C. (“Reef Marketing”). Reef International is the holder of United States, Texas and Mexico permits for the construction, ownership, operation and maintenance de international cross-border natural gas pipelines and propane/butane liquid pipelines.

Michael Ward, President and CEO, said, “Our management team has ambitiously implemented strategies to further develop the Company’s infrastructure which will support a business model that allows us to gain revenues and increase our market share. This acquisition de Impact’s and Coahuila’s interest affords us the opportunity to implement these strategies while delivering greater shareholder value.”

The transaction with Impact and Coahuila is expected to close May 15, 2004 or sooner. Details regarding the terms and conditions de the agreement will be provided at a later date.

About Tidelands Oil & Gas Corporation

Tidelands Oil & Gas Corporation, San Antonio, Texas, is the parent company de two wholly owned Texas subsidiary corporations: Rio Bravo Energy, L.L.C. and Sonora Pipeline, L.L.C. The Company is also a joint-owner de Reef International, L.L.C. and Reef Marketing, L.L.C. The Company focuses on international pipeline crossings, gas processing plants and liquefied petroleum product storage facilities. Through its in-house divisions, Tidelands offers a full suite de services and has the capability to satisfy a wide variety de customer needs both domestically and internationally. Tidelands currently owns numerous miles de pipeline. The Company is currently reviewing opportunities to further expand its business scope. For more information about the Company, visit their website at 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.

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