Tidelands Acquires Remaining Interest in Reef International

Tidelands Oil & Gas Corporation has exercised its option and has acquired the remaining fifty percent ownership interest in its subsidiary company Reef International, LLC. from Rainbow Investments. Tidelands decision was solely based on the economics of its new International Pipeline Crossing into Mexico. By owning its subsidiary company Reef International LLC. without any partners, Tidelands Oil & Gas Corporation will dramatically increase its revenues and per share earnings once the pipeline is constructed and operational in the early part of the first quarter of 2002. Tidelands management feels the purchase is ultimately and without question in the best interest of the entire company and fulfills Tidelands goal of maximizing share holder value. Financing for the acquisition and construction of the pipeline has been secured from a private investment group.

Tidelands continues to position its self to be a major transporter and processor of natural gas, propane and butane into Mexico.