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 firstname.lastname@example.org
SOURCE Tidelands Oil & Gas Corporation