Tidelands Hires Remora to Develop an LNG Terminal

Tidelands Oil & Gas Corporation has hired Remora Technology to explore the operational and commercial design for the building of a HiLoad LNG Regasification Terminal in the Gulf of Mexico's offshore waters. Remora will, in cooperation with Tidelands, gather as much information as needed to initially develop a basis of design and follow-up with a preliminary design study to identify the specific equipment required for year round operation in conditions pursuant to the site.

Remora Technology, with the financial support of ConocoPhillips, has developed the unique HiLoad LNG Regasification Terminal as an innovative and environmentally friendly solution to effectively connect to and import LNG as natural gas from any LNG carrier. This floating terminal allows for the receiving of cargos, since no dedicated equipment will be required for the LNG carriers. The HiLoad facility attaches itself to an LNG tanker and directly vaporizes the LNG as it is offloaded and injects directly into pipelines that supply the gas markets. Remora's approach eliminates the need for extensive above ground storage tanks or large barge based marine structures required for berthing and processing. It also allows great flexibility in the transmission rates, ranging from 250MMCFD to 1.4 BCFD. Once the HiLoad LNG Regasification Terminal efficiently transmits the gases from the LNG tanker, it is distributed through undersea pipelines that connect with onshore storage facilities, metering stations and further transmission pipelines, ready for use in the energy markets.

Michael Ward, President and CEO of Tidelands Oil & Gas Corporation, said, "We have been highly impressed with Remora's HiLoad LNG Regasification Terminal and have quickly determined its tremendous potential for our business strategies and plans in Mexico. Our plans are to make this terminal off the coast of Mexico an integral part of the proposed storage hub in the Burgos Basin. This proposed terminal facility, when developed along with our proposed underground natural gas storage facility and pipeline interconnections, will be the most dynamic energy network along the Gulf Coast. It will enable Tidelands to provide a more comprehensive service to the Mexico energy markets and allow Mexico to better manage both swing demands and price fluctuations within their energy markets. Once fully integrated, Mexico will have more control over the delivery of gas to the population and be better able to satisfy the supply and demand for gas products."

Mr. Ward further elaborated, "In the event the Mexico markets become saturated, gas can be sent to the US markets as well. Total off-take capacity of the HiLoad LNG Regasification Terminal could be approximately 500MMBTU to Mexico, 450MMBTU to storage and 500MMBTU to US markets. The promise and potential of this project is extraordinary and Tidelands is proud to be a pioneer in the implementation of this exciting technology."

Lars Odeskaug, President of Remora Technology, said, "The HiLoad Technology is the result of a dedicated development program over more than 4 years. This proprietary technology is recognized by the Industry, with 'Approval In Principle' from ABS and DNV, and as Winner of the Innovation Award during this year's OTC. We are extremely pleased with the Tidelands commitment, and consider it a breakthrough in the commercialization of the technology. The combination of the offshore HiLoad LNG Regas Terminal, with Tidelands' onshore storage and gas distribution facility, is an excellent fit. We are impressed with Tidelands' ability to act on this unique opportunity."