Terranova Energia, S. De R.L. De C.V., The Mexican Subsidiary of Tidelands Oil & Gas Corporation, Files for Permit With Mexico’s Energy Regulatory Commission (CRE) for Underground Natural Gas Storage Facility

SAN ANTONIO, Aug. 8 /PRNewswire-FirstCall/ — Tidelands Oil & Gas Corporation (BULLETIN BOARD: TIDE) , announced today that its wholly owned subsidiary, Terranova Energia, S. de R.L. de C.V., effective August 5, 2005, has filed for a permit with the CRE (Comision Reguladora De Energia de Mexico) for its proposed underground natural gas storage facility to be built and operated in the Brasil Field of the Burgos Basin near Reynosa, Tamaulipas, Mexico. The storage facility will be a porous sandstone reservoir bounded by impermeable rock layers and will exhibit a working capacity of 50 Bcf (billion cubic feet) while providing 500 MMcf/d (million cubic feet of gas per day) of peak deliverability. This storage facility will help satisfy demands for natural gas storage in Northeastern Mexico, which includes the industrial city of Monterrey.

The facility will play a key role as part of a broader project which encompasses plans for building and maintaining a hub of bi-directional pipelines, inclusive of the Terranova Oriente pipeline whose permit was filed with the CRE on March 18, 2005. These transmission pipelines will be capable of transporting natural gas from Texas into Mexico or vice versa. Additional plans include an offshore Regasification Terminal to be built in the Gulf of Mexico. Tidelands expects to file shortly for permits with the CRE for its proposed offshore Regasification Terminal.

Michael Ward, President and CEO of Tidelands Oil & Gas Corporation, stated, “The permitting process represents a significant milestone in Tidelands’ continuing efforts to establish itself as a prominent contributor to Mexico’s oil and gas infrastructure. We are confident that our preparatory efforts and meticulous scrutiny regarding the details of our projects will expedite the permitting process, and as always, remain focused on growing our Company and building shareholder value.”

Tidelands Oil & Gas Corporation will continue to update its shareholders as developments warrant.

About Tidelands Oil & Gas Corporation

Tidelands Oil & Gas Corporation, San Antonio, Texas, focuses its business on international pipeline crossings, gas processing plants and gas storage facilities. Through its nine directly and indirectly owned subsidiaries, Tidelands offers a full suite of services and has the capability to satisfy a wide variety of customer needs, both domestically and internationally. 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.

    Investor Contact:  Barry Gross                       Gross Capital, Inc.                       361-949-4999                       barry@grosscapital.com    Company Contact:   Michael Ward                       Tidelands Oil & Gas                       210-764-8642                       togctide@aol.com  

Tidelands Oil & Gas Corporation

CONTACT: investors, Barry Gross of Gross Capital, Inc., +1-361-949-4999,or barry@grosscapital.com , for Tidelands Oil & Gas Corporation; or MichaelWard of Tidelands Oil & Gas Corporation, +1-210-764-8642, ortogctide@aol.com

Web site: http://www.tidelandsoilandgas.com/