SAN ANTONIO, July 28 /PRNewswire-FirstCall/ -- Tidelands Oil & Gas
Corporation (OTC Bulletin Board: TIDE), would like to provide our shareholders
and the investment community with an update concerning the status of
activities within Frontera Pipeline LLC ("Frontera") and the Burgos Hub
project in South Texas and Northern Mexico.
On May 21, 2008, the Federal Energy Regulatory Commission (FERC) granted
an extension of time until and including July 10, 2010 for Sonora Pipeline LLC
to construct and make its Burgos Hub project facilities available for service.
The certificate of convenience and public necessity for the construction of
the natural gas pipeline and the permit to extend the pipeline under the Rio
Grande River for interconnection into natural gas pipelines in Mexico are key
entitlements that are expected to be used to attract commercial development of
the project. The extension of time granted by FERC was given in order to
accommodate expected commercial use of the facilities by parties based in
Mexico. Sonora Pipeline LLC is wholly owned by Frontera Pipeline LLC.
Tidelands Oil & Gas Corporation owns 20% of Frontera.
On May 29, 2008, the Comision Reguladora de Energia (CRE) granted a
one year extension from that date for Terranova Energia, S. de R.L. de C.V.
("Terranova") to file its final cost and income proposal, as well as the
corresponding tariffs and maximum income for the existing natural gas pipeline
permit held by Terranova in Mexico. The current expectation of Frontera is
that no change of the existing pipeline routing under the original permit is
needed at this time; therefore, Frontera does not expect to file for an
amendment to the existing pipeline permit. Terranova is also wholly owned by
Frontera.
Frontera expects that more clarity concerning the status of the natural
gas storage facility (a component of the Burgos Hub project) permit
application will emerge from the results of the energy reform legislation
which is currently under debate and consideration by the Mexican legislature.
The CRE has informed Frontera that there is a specific provision in the energy
reform proposals put forth by the Calderon administration that deals with the
development of natural gas storage facilities in depleted gas reservoirs that
are owned by PEMEX and the Mexican nation.
James B. Smith, Tidelands' President and CEO, said, "Based on discussions
with our partners in Frontera and with representatives of PEMEX, our current
expectation for future commercial use of the proposed facilities is that one
or more subsidiaries of PEMEX is likely to be the principal customer for some
portion of the Burgos Hub project."
About Tidelands Oil & Gas Corporation
Tidelands Oil & Gas Corporation, San Antonio, Texas, focuses its business
on natural gas pipeline infrastructure and natural gas receiving and storage
facilities. For more information about the Company, please visit
http://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.
COMPANY CONTACT
James B. Smith
Tidelands Oil & Gas
210-764-8642
info@tidelandsoilandgas.com
SOURCE Tidelands Oil & Gas Corporation