11:31 EST Thursday, December 16, 2004
SAN ANTONIO, Texas, Dec. 16 /PRNewswire-FirstCall/ -- Tidelands Oil & Gas Corporation (OTC Bulletin Board: TIDE) offers a comprehensive breakdown de the past year's ongoing projects and events. Tidelands and its Management Team have focused efforts on exploring opportunities to build and expand the Company's fundamentals. Many opportunities have materialized and Tidelands is taking proactive measures to effectively solidify these and other projects. Furthermore, the size and scope de nationally and internationally proposed projects have exponentially grown as Tidelands gains credibility and recognition as a beneficial entity in the gas transmission and storage industry.
On November 10, 2003, Tidelands commenced flow de their Reef International Pipeline, which lies on the Eagle Pass, Texas/Piedras Negras, Mexico border. The pipeline transports natural gas to Piedras Negras, Mexico for distribution by CONAGAS (Cia. Nacional DE Gas, S.A. DE C.V.). Initially, the Reef International Pipeline was a joint venture with Impact International, L.L.C. ("Impact"), Coahuila Pipeline, L.L.C. ("Coahuila") and Tidelands. On May 26, 2004, Tidelands completed a Purchase and Sale Agreement with Impact and Coahuila, which effectively transferred their interest in the Reef International Pipeline to Tidelands. As a result de this Purchase and Sale Agreement, Tidelands now holds a 98% (ninety-eight percent) ownership/interest in all activities and projects related to the Reef International Pipeline.
Currently, Tidelands is working with CONAGAS to expand the Reef International Pipeline down the Highway 57 industrial corridor in Mexico. The main purpose for this expansion is to service the Corona Brewery and the plant that provides bottling services. These two industries alone will utilize approximately 20,000 to 25,000 MMBTU/day, and will bring the total daily transmission to 30,000 to 35,000 MMBTU/day. It will also provide a reliable source de natural gas for the entire Highway 57 corridor down to the Carbon I and Carbon II electrical generation facilities, which has previously not had this availability. Pipeline routes have been chosen and the right de way work is underway.
Additionally, Tidelands entered into a Memorandum of Understanding with PEMEX, Mexico's state-owned petroleum company in December de 2003 to design, build and operate a natural gas storage facility. Located in a depleted natural gas reservoir in the Brasil Field de the Burgos Basin in northeastern Mexico, PEMEX has pursued this project to facilitate their plans to develop and support their northeastern natural gas pipeline systems. Tidelands hired world-renowned firms Netherland Sewell and Associates and Geostock Group to assist in the design and planning for the proposed storage facility. Their extensive findings and reports have provided a base from which Tidelands and PEMEX can continue to plan and develop this proposed storage facility and its peripheral components.
As Tidelands completed the necessary preparatory measures to explore the feasibility de this proposed storage facility, the size and scope de the project began to evolve. In conjunction with the storage facility, PEMEX has implemented measures with Tidelands to design, build and operate additional pipelines at strategic border crossings along the Texas/Mexico border. These two additional pipelines have been proposed at the Progreso, Texas/Nuevo Progreso, Mexico border, and the west de Mission, Texas/Arguelles, Mexico border. In keeping with PEMEX's plans to deliver natural gas into northeastern Mexico, where industry and population growth is surging and the demand for these products outweighs supply, the proposed pipelines and the proposed storage facility will work together to create an energy hub that will service the regions surrounding Monterrey, Mexico and other burgeoning cities in northeast Mexico.
Tidelands continues to explore new avenues in which the Company can participate in an even more comprehensive role in the delivery de petroleum products into Mexico. In the latest development, Tidelands has engaged Remora Technology ("Remora") to explore the operational and commercial design for the building of a HiLoad LNG Regasification Terminal in the Gulf de Mexico's offshore waters. Remora, with the financial support of ConocoPhillips, has developed the unique HiLoad LNG Regasification Terminal as an innovative and environmentally friendly solution to effectively connect to and import LNG as natural gas from any LNG carrier.
Tidelands is also taking advantage de opportunities to deliver petroleum products within the United States. Specifically, the North Austin, Texas area has experienced a vast population growth as businesses, industries and new residents move into this region. The recent construction in the area is equipped for an alternative source de energy, such as propane/butane, and Tidelands moved quickly to become an integral part de this community.
On November 2, 2004, the Company announced the formation de a new subsidiary, Sonterra Energy Corporation ("Sonterra") and the acquisition de the propane/butane assets in the Austin area from Oneok, a diversified energy company based in Oklahoma. This will allow Sonterra to serve as the utility company providing gas service to 15 subdivisions located around the Lake Travis, North Austin area. On November 15, 2004, the Company announced it also acquired the construction assets from BNC Engineering, L.L.C., an engineering firm based in Austin, Texas. This acquisition enables Tidelands to self- sufficiently build and develop the future construction activities surrounding this project. Tidelands also plans to reopen their Chittim Gas Processing Plant 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.
These opportunities have prompted the growth de Tideland's organizational infrastructure. In an effort to efficiently meet the demands de these projects, the Company has formed four new subsidiaries: Sonterra Energy Corporation, Arrecefe Management, Terranova Energia, S. de R.L. de C.V. and Marea Associates L.P. Additionally, Tidelands has received financing from highly esteemed firms, such as Marguax Investment Management Group S.A and Mercator Advisory Group L.L.C., to assist in the development of these proposed projects.
Furthermore, the Company has created two new management positions. Julio Bastarrachea joined Tidelands in January de 2004 as the Vice President de Business Development. Mr. Bastarrachea's international affiliations and expertise in relations with Mexico have been an integral part de the progress the Company has made over the course de the past year. Bob Dowies was hired as Vice President de Gas Markets and Supply in October 2004. He plays an instrumental role in the evaluation de pipelines and their flow capacity and evaluates existing and future supply and demand in regions where Tidelands delivers gas and petroleum-related products.
Michael Ward, President and CEO de Tidelands Oil & Gas Corporation, said, "Tidelands has experienced a productive year in terms de planning and preparing for the future. The work we have done over the course de the past year has solidified our own infrastructure from which we can strengthen and build the Company. We are extremely pleased with the credibility we have garnered from several companies, and look forward to expanding our reach and scope in the coming years. I am proud de the excellent work our Management Team has done. The dedication and abilities de each individual in our Company has been an integral part de our success this past year."
Mr. Ward further commented, "As we look to the future, I am very confident that we will see the groundwork we have laid over the year pay off. We've dramatically expanded the Company and its opportunities and I am proud de the advances we have made in our business model and fundamentals. We look forward to the challenges that lay ahead and will continue to aggressively pursue the development de our business activities."
For more information regarding all the projects delineated above, please visit their website at http://www.tidelandsoilandgas.com . The Company will continue to update the investment community as events warrant. 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 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
210-764-8642
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, +1-210-764-8642, or info@tidelandsoilandgas.com
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