SAN ANTONIO, March 19 /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.
Last week, representatives of Frontera Pipeline LLC received an update
from the CRE (Comision Reguladora de Energia) concerning the status of various
matters connected with the Burgos Hub project.
With respect to the application for a permit to develop an underground
natural gas storage facility in the Brasil field in northern Mexico, the CRE
informed Frontera that consideration of the policy options for granting an
award of a storage permit has been delayed due to the need of SENER (the
Mexican Energy Ministry) to focus on the energy reform legislative proposals
currently being considered by the Mexican legislature. The CRE indicated that
they are hopeful that SENER will be able to turn their attention back to the
storage permit issues in approximately six weeks, after the adjournment of the
legislative session.
With respect to the existing pipeline permits now held by Frontera and the
expected amendment of those permits, the CRE indicated its willingness to
consider an extension of the current pipeline permit provided Frontera files
the requisite information and observes all necessary procedures for the
extension request. After this extension of the current permit is granted,
Frontera would proceed with the activities necessary to file for amendment of
the current pipeline permit in order to add a new pipeline segment beginning
at Station 19 of the National Pipeline System south of Reynosa, Tamaulipas,
and extending to a central distribution point in Monterrey, Nuevo Leon.
Frontera expects to conduct a valuation of the rights of way for this new
pipeline segment, additional gas flow modeling and engineering design work
prior to the filing of the application for amendment of the current pipeline
permit. These activities are expected to take several more months and must
occur prior to the filing of the amendment to the pipeline permits held by
Frontera.
The CRE also indicated that changes in the regulatory scheme for the use
of natural gas pipelines in Mexico have now been finalized. Frontera, with the
assistance of legal counsel in Mexico, is studying these changes with a view
towards an analysis of the commercial impact of such changes on the proposed
pipelines of the Burgos Hub project. The CRE explained that the changes will
be effective in 2009 and are intended to require the unbundling of pipeline
services in natural gas transportation. As a result of these changes, various
forms of capacity rights are expected to be bid for by natural gas users in an
open season process similar to that conducted under the regulatory regime that
exists in the United States of America. The CRE also stated that on a national
basis, the existing natural gas pipeline network was operating at 85% of
capacity which indicates a need for further pipeline capacity development in
order to ensure safe and reliable transportation services for natural gas
users in Mexico.
James B. Smith, Tidelands' President and CEO, said, "Our management team
remains committed to exploring new opportunities in the energy industry while
bringing to fruition the projects with which we are currently involved. Our
business strategy includes corporate level debt reduction and disposal of
non-core and underperforming business segments with a view towards positioning
Tidelands for future growth and expansion in areas that complement our current
business plans."
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