Tidelands Oil & Gas Corporation Press Releases

Tidelands Oil & Gas Corporation (OTCBB: TIDE)

July 30, 2004

Tidelands Oil & Gas Corporation Updates Progress on Proposed Underground Natural Gas Storage Facility with PEMEX

Tidelands Oil & Gas Corporation (OTC Bulletin Board: TIDE), announces an update on several aspects de the proposed underground natural gas storage facility with PEMEX, Mexico’s state-owned petroleum company. The scope de this project has evolved into a more intricate and complex project, which includes building and maintaining a hub de pipelines that interconnect with the proposed storage facility and Mexico’s oil and gas infrastructure.

Tidelands is currently in the final negotiating stages with PEMEX regarding designing, building and operating the proposed underground natural gas storage facility. In anticipation de the consummation de this agreement between PEMEX and Tidelands, the Company has formed a Mexican corporation, Terranova Energia, S. de R.L. de C.V. This new subsidiary will handle all business dealings with Mexico and PEMEX. In addition to forming Terranova Energia, the Company has hired Enersa, a Mexican consulting firm, to accumulate data and facilitate current and future permitting with the Comision Reguladora de Energia (CRE), a Mexican regulatory body overseeing storage facilities and gas distribution in Mexico.

Regarding the design and construction de the proposed underground storage facility, the Company has contracted Universal Compression for the compression units required to facilitate the project. Additionally, Tidelands is currently reviewing bids from Halliburton, Schlumberger, Precision Drilling and BJ Services for drilling and rework activity in the Brasil Field de the Burgos Basin, where the proposed storage facility will be located.

Michael Ward, President and CEO de Tidelands Oil & Gas Corporation, stated, “Never in our history have the Company’s dynamics and potential been better. We believe years de hard work and planning are at the cusp de actualization and we are diligently working to finalize the contract with PEMEX regarding the proposed storage facility. We expect closure on all facets de the negotiations shortly.”

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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