Reef International Receives Permits for International Pipeline
Tidelands Oil & Gas Corporation announced that Reef International LLC. has received their operating and construction permits from the Texas Railroad Commission. The receipt of the permits will allow Reef to commence construction of the Eagle Pass/Piedras Negras International pipeline crossing on the US side of the border while it awaits its federal permits to be granted. The federal permits are expected to be received in the very near future.
The Eagle Pass/Piedras Negras International Pipeline crossing is the first crossing of its kind, transporting natural gas, propane and butane at the same crossing via a unique three line network.
Tidelands management is deeply saddened by the horrific events that took place on September 11, 2001. The subsequent heightened security at the US/Mexico border has dramatically affected an already slow means of transporting propane and butane by truck. The current mode of transporting propane and butane across the border is time consuming, expensive and has in fact become obsolete.
Tidelands is currently in the process of finalizing several agreements for the transporting and delivery of natural gas, propane and butane via its international pipeline crossing to Mexico. Upon completion of construction the pipeline will afford the most efficient means of transporting these products into Mexico. The international bilateral pipeline crossing is expected to be operational in the early part of the first quarter of 2002.
Once the construction of the pipeline is completed it will position Tidelands Oil & Gas Corporation as a major transporter and processor of natural gas, propane and butane into Mexico. The new pipeline will generate substantial revenues and coupled with a very low cost of operation will result in significant per share earnings which will be reflected in the operating results in the second quarter of 2002.