Tidelands Oil & Gas Corporation

(OTCBB: TIDE)

• Permits for Piedras Negras international pipelines expected to be granted by the end of May.
• Permitting process for El Paso/Juarez pipeline began May 2.

TIDE is in the natural gas transporting and gas processing business, marketing its products into Mexico. In addition, TIDE has a natural gas pipeline system approximately four hundred (400) miles in length, covering three counties. Sonora Pipeline Company, LLC operates the pipeline that feeds the gas processing plant. This creates an excellent revenue stream for Tidelands.  These revenues are supported by long term contracts giving TIDE a secured revenue stream and solidifying the Company’s ability to expand.

TIDE markets its natural gas to third party gas end user markets that include consumer and industrial users. In addition, Tidelands processes natural gas through its Rio Bravo Energy, LLC natural gas processing plant. This plant processes natural gas from the Conoco Sacatosa Field that is made up of approximately three thousand (3000) wells and also markets some of the plant products, such as propane and butane to markets in Mexico.

Tidelands Oil and Gas (TIDE) is a publicly traded diversified oil and gas company. Management has in excess of 100 years of experience in all phases of the industry. Experience in drilling, completion and recompletions, operating oil and gas properties, operating and managing gas processing plants, marketing oil, gas and liquid products and transportation of natural gas to markets throughout the southern United States.

• Tidelands Oil Corporation, formed in 1985, operates all oil wells owned by TIDE
• Tidelands Gas Corporation, formed in 1996, operates all gas wells owned by TIDE
• Rio Bravo Energy LLC, formed in 1999, owns and operates a natural gas processing plant extracting propane, butane and natural gas.
• Sonora Pipeline LLC, formed in 1999, owns and operates gas pipelines which brings the gas supply to RIO Bravo's gas processing plant
• Reef International LLC, is the entity currently filing for all permits for an international pipeline crossing into Mexico.

Tidelands Oil and Gas Corporation was formed from the acquisition of a public trading "shell" corporation (formerly C-2 Technologies, Inc.)  Tidelands Gas Corporation was primarily formed to operate natural gas wells owned by Tidelands. Tidelands Gas Corporation negotiated and purchased what was then known as the "Carrizo Springs Pipeline System".  The purchase was made from Aquila Gas Transmission Company, a large interstate gas transmission company. This pipeline system extends a distance of 80 miles across three counties and provides a method for transporting gas from various properties across the Maverick County Basin.

Rio Bravo Energy LLC acquired a gas processing plant from CONOCO with a capacity to produce 12 million cubic feet of gas per day.  This plant is currently processing all of the gas from the CONOCO Sacatosa Field, Merit Energy’s Pena Creek Field and the exploration company.  Sonora Pipeline Company LLC operates approximately 400 miles of pipeline that delivers gas into the Rio Bravo Energy LLC gas processing plant.

In addition to the CONOCO plant, TIDE has made arrangements to purchase another processing plant that has the capability to process approximately 20 million cubit feet of gas per day.  This processing plant will be moved onto the site of the CONOCO plant.  The plant will increase the total volume to be processed to approximately 32 million cubit feet of gas per day.  The gathering and processing contracts are currently being negotiated.  TIDE will be solely responsible for the operation, federal and state filings, accounting and other responsibilities for the plant.

Reef International LLC was formed to construct and operate international pipeline crossings into Mexico.  The crossing first crossing will consist of a twelve-inch natural gas pipeline that will deliver gas to the Mexico gas distributor in Piedras Negras, Mexico and a six-inch pipeline crossing to transport propane and butane.  In addition, Reef International is currently working several other international crossings along the Texas/Mexico border with the next crossing to be permitted being a natural gas crossing at El Paso/Juarez.

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May 2, 2002 Tidelands Announces Commencement of Permitting Process for International Pipeline Crossing at El Paso, TX./Juarez, Chihuahua, Mexico

Apr 26, 2002 Tidelands Oil & Gas Corp Financials

Apr 15, 2002 TIDELANDS OIL & GAS CORP/WA -

Apr 1, 2002 TIDELANDS OIL & GAS CORP/WA - Annual Report (SEC form 10KSB)

Mar 6, 2002 Tidelands Oil & Gas Corporation (TIDE) Subsidiary Company Reef International LLC Announces They Have Cleared the Comment Period on Their United States Department of State Presidential Permit Application

Mar 4, 2002 Tidelands Oil & Gas Corporation (Tide) Subsidiary Company Reef International LLC Announces They Have Cleared the Comment Period on Their Federal Energy Regulatory Commission Presidential Permit Application

Management

Michael R Ward, President/CEO, became President/CEO and a Director of Tidelands Oil & Gas Corporation in October of 1998.  Michael is 46 years of age and was born in Corsicana, Texas in Navarro County.  He is Vice President and Chief Operating Officer of Tidelands Gas Corporation. Michael has more than 29 years of diversified experience as an oil and gas professional.  Michael was educated in Business Management and Administration at Southwest Texas University and the University of Texas. Michael has vast experience and success in operating oil and gas companies in the United States.  During the past 20 years, Michael has been associated with Century Energy Corporation where his duties and responsibilities were production and drilling superintendent. He supervised three hundred new drills and recompletions in Duval County, Texas.  Michael was Vice President and part owner with Omega Minerals, Inc.  During his time at Omega he operated 65 wells in 23 counties in south and west Texas, 17 wells in Seminole and Osage Counties, Oklahoma, 44 wells in Neosho and Wilson Counties, Kansas and 125 wells in Brown, Pike, Schuyler and Scott Counties, Illinois.  He also spent several months in the United Kingdom and Europe arranging a public offering on the U.K. Exchange.  Michael was Vice President of Omega Minerals, Inc., a corporation that was owned by Royis Ward and family.  Michael was President and owner of Major Petroleum Company where he drilled, completed and produced 42 wells in south and west Texas counties.  

Ahmmed Karim, Vice-President/Director, became Vice President and Director of Tidelands Oil & Gas Corporation in October of 1998.  Ahmmed Karim is a graduate of Simon Fraser University.  He holds a degree in Business Administration, specializing in Marketing and International Business.  Ahmmed brings several years of banking and international trade experience.  He has also gained valuable experience marketing for a major satellite company.  An Entrepreneur by nature, Ahmmed brings a wide variety of business contacts from across North America and abroad.

Royis Ward, Secretary/Director, became Secretary and Director of Tidelands Oil & Gas Corporation in October of 1998. Royis Ward is an oil and gas professional. He has been engaged in the oil and gas industry since graduation from Tyler Junior College, Tyler, Texas in 1952. He was employed as a Production Superintendent and Landman for Coffield & Guthrie, Inc., a large independent oil and gas operator. He was then placed in charge of pipeline and drilling operations from 1952-1955. In 1955, he began to develop oil and gas properties for his own account as an Independent Oil and Gas operator throughout the southwest until 1962. At that time, he became President of Omega Petroleum Corporation, Shreveport, Louisiana. In 1963, he became President of Bay - Tex Development Corporation, a large real estate developer in Houston, Texas.

TIDE filings with the SEC can be found here.  The latest filing was a form 10KSBA on 04/15/02. 

Visit the Company Website at www.tidelandsoilandgas.com

Summary

TIDE is in the natural gas transporting and gas processing business, marketing its products into Mexico.  In addition, TIDE has a natural gas pipeline system approximately 400 miles in length, covering three counties. Sonora Pipeline Company, LLC operates the pipeline that feeds the gas processing plant. This will create an excellent revenue stream for Tidelands.

These revenues are supported by long term contracts giving TIDE a secured revenue stream and solidifying the company’s existence and ability to expand.

TIDE markets its natural gas to third party gas end user markets that include consumer and industrial users. In addition, Tidelands processes natural gas through its Rio Bravo Energy, LLC natural gas processing plant. This plant processes natural gas from the Conoco Sacatosa Field that is made up of approximately 3000 wells and also markets some of the plant products, such as propane and butane to markets in Mexico.

There is a tremendous demand for natural gas and propane/butane in Mexico.  This demand grows by some 30% each year as the people move north to the border looking for employment.  With this in mind, TIDE began working on a plan in 1999 to provide a faster and less expensive way to transport both products across the Rio Grande River into Mexico.  This need became even greater after the September 11th terrorist attacks in New York City and Washington, D.C.  It now takes trucks, the primary method of transporting propane/butane into Mexico, approximately ten hours each way, to cross the border.

We believe that TIDE is poised to break out.  The Eagle Pass - Piedras Negras International Crossing revenues will be the beginning of a tremendous surge in revenues for TIDE.  The international bilateral pipeline crossing is expected to be operational in 2002.  Once the construction of the pipeline is completed it will position Tidelands Oil & Gas Corporation as a major transporter and processor of natural gas into Mexico.  The new pipeline will generate substantial revenues and coupled with a very low cost of operation will result in significant per share earnings which will be reflected in the operating results in the third quarter of 2002.

There are several other projects underway including the El Paso/Juarez Project, which has begun the permitting process and is projected to provide revenues approximately two-thirds that of the Piedras Negras Pipeline.  Based only on projected EPS from the Piedras Negras Pipeline and using the P/E for the Oil & Gas Operations Industry, within the Energy Sector, of 13.36 we derive a 2002 target price, based on first year revenues, of $3.47.  This assumes that half of the projected revenues shown for Year 1 are realized in 2002.  Using this same process we derive target prices for 2003 of $10.82, 2004 of $16.43, 2005 of $20.97 and 2006 of $22.58.  Based on these projections we give TIDE a STRONG BUY recommendation.

Note: To meet the suggested target prices, the Company would have to trade at approximately the Oil & Gas Operations  Industry multiples and the Company would have to achieve earnings and revenue estimates provided by management.  A divergence either up or down from the projections could materially affect the target prices.