Tidelands to Build Add'l International Pipelines to Mexico

Tidelands Oil & Gas plans to build two additional international pipelines at the Progreso, Texas/Nuevo Progreso, Mexico border and west of Mission, Texas/Arguelles, Mexico border. These pipelines will interconnect with the proposed underground natural gas storage facility and Mexico's oil and gas infrastructure, creating an intricate network of pipelines that will serve to facilitate the flow of gas to Mexico's commercial, residential and industrial customers. This development represents another step in Tidelands' initiatives to bring continued growth and expansion to the Company's business activities.

Tidelands has engaged the services of Bernard A. Foster III, of Ross, Marsh & Foster, to prepare data required to instigate permits with the Federal Energy Regulatory Commission (FERC). The permits will allow Tidelands to begin the initial planning stages to design, build and maintain these two international pipeline crossings, which will enable PEMEX, Mexico's state- owned petroleum company, to more efficiently deliver gas to its commercial, residential and industrial customers. Tidelands currently has an international pipeline flowing natural gas at the Piedras Negras, Mexico/Eagle Pass, Texas border. These proposed pipelines, managed under Tidelands' new subsidiary Arrecefe Management L.L.C., will consist of a thirty (30) inch natural gas line at the Progreso border and a thirty-six (36) inch natural gas line at the Arguelles, Mexico border. Arrecefe is a new wholly-owned subsidiary that was formed to manage the pipeline projects along the Texas and Mexico border.

Mexico is making significant investments in their energy related infrastructure, which has provided business opportunities for companies like Tidelands Oil & Gas Corporation.

Michael Ward, President and CEO of Tidelands Oil & Gas Corporation, stated, "The strengthening of Mexico's oil and gas infrastructure has provided Tidelands enormous opportunity to expand and develop our business activities. As we proved with the Piedras Negras/Eagle Pass cross-border pipeline, we are committed to completing these projects from their inception and development through the moment we start flowing gas through the pipelines. Through this, we have developed a solid relationship and reputation with PEMEX and we look forward to exploring every avenue in which we may participate in their initiatives to solidify and upgrade their oil and gas infrastructure."