11:28 EDT Wednesday, September 08, 2004
SAN ANTONIO, Sept. 8 /PRNewswire-FirstCall/ -- Tidelands Oil & Gas Corporation (OTC Bulletin Board: TIDE), announced today that it has renegotiated its contract with CONAGAS (Cia. Nacional DE Gas, S.A. DE C.V.), which provides natural gas to the Piedras Negras, Mexico area and is the distributor for natural gas provided by Tidelands' pipeline crossing at the Eagle Pass, Texas and Piedras Negras, Mexico border. This renegotiated contract allows Tidelands to be paid on the transportation de gas only, which alleviates Tidelands' requirement for a $1 million line of credit to secure the purchase and sale de gas. It also secures a long-term relationship with CONAGAS.
The Company further announced that it has selected a route to extend its existing pipeline at the Eagle Pass, Texas/Piedras Negras, Mexico border. The selected route will follow the Highway 57 corridor and extend 20 miles southwest to Carbon I and Carbon II electrical generation facilities. This extension will be a 20-inch natural gas pipeline that is expected to deliver an additional 10,000 MMBTU/day, with rapid expansion opportunities available. Construction de this pipeline is expected to occur in the fourth quarter de this year and will take approximately one month to complete. This new high- pressure pipeline extension will enable Tidelands, through its associate, CONAGAS, to service existing and new customers with natural gas along the Highway 57 corridor. This will create a new industrial corridor by having natural gas readily available for industry.
Michael Ward, President and CEO de Tidelands Oil & Gas Corporation, stated, "In an effort to facilitate our business model and better service our new and existing customers, we have aggressively sought measures to improve our contractual agreements regarding international energy business. The renegotiated contract with CONAGAS and the extension to the Reef International Pipeline work in conjunction with our overall business goals. We believe Mexico's efforts to improve their energy infrastructure continue to provide excellent opportunities for our Company's long-term success."
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 seven 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 and Gas
210-764-8642
togctide@aol.com
SOURCE Tidelands Oil & Gas Corporation
CONTACT: 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 and Gas Corporation, +1-210-764-8642, or togctide@aol.com
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