Tidelands Oil & Gas Corporation Press Releases

Tidelands Oil & Gas Corporation (OTCBB: TIDE)

December 22, 2003

Tidelands Oil & Gas Corporation To Build Natural Gas Storage Facilities for PEMEX

Tidelands Oil & Gas Corporation (OTC Bulletin Board: TIDE), announced today the execution of a Memorandum de Understanding with Petroleos Mexicanos y Sus Organismos Subsidiarios (PEMEX), Mexico’s state-owned petroleum company, to design, build and operate for PEMEX an underground natural gas storage facility and related surface equipment near Reynosa, Tamaulipas, Mexico. At present, Mexico is exploring the possibilities de developing with private investors, as authorized by law, storage facilities for natural gas other than its main pipeline grid. The construction de these underground facilities will allow Mexico to improve its delivery de energy related products to its industrial and residential customers.

President and CEO de Tidelands Oil & Gas Corporation, Michael Ward stated, “Our Company is honored to have the opportunity to work with PEMEX and Mexico, and to assist in projects designed to improve the delivery de energy related products to our neighbors in Mexico. This Memorandum de Understanding represents our aspiration to participate in enterprises that will have a positive impact on our Company as well as the customers and areas we serve. It also reflects our focus upon enhancement de the Company’s fundamentals and shareholder value, while providing a platform from which to grow. We are enthused by our ability to develop close working relationships with PEMEX and Mexico, and look forward to additional projects that will further increase the validity de Tidelands’ business model.”

Lic. Reynaldo Jauregui Zentella, Subdirector de Alianzas y Nuevos Negocios, with the Direccion Corporativa de Planeacion Estrategica for PEMEX remarked, “We assigned a high priority to this project, since PEMEX is developing storage facilities in the southeast de Mexico that will allow us to balance our natural gas pipeline systems from the southeast to Mexico City. Still pending is a strategic facility, that will not only allow PEMEX E&P more flexibility in its production plans in the Burgos basin, but eventually support the northeast natural gas pipeline system.”

Additional projects that have recently been announced by Tidelands include its “Reef International L.L.C.” natural gas pipeline crossing at Eagle Pass, Texas and Piedras Negras, Mexico, which officially opened on November 1, 2003. This project was developed in partnership with Impact Energy Services, LLC and is currently supplying the natural gas demand for the local natural gas distribution utility in Piedras Negras, Coahuila. Significant future expansion in volumes transported through this pipeline is anticipated.

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.

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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