U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report: June 6, 2006
TIDELANDS OIL & GAS CORPORATION
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(Exact Name of registrant as specified in its Charter)
Nevada 0-29613 66-0549380
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State of Incorporation Commission File No. I.R.S. Employer
Identification No.
1862 West Bitters Rd. San Antonio, TX 78248
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number,( 210 ) 764 - 8642
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(Registrant's former name and address)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions below:
[_] Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
[_] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[_] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17CFR 240-14d-2(b))
[_] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240-13e-4(c))
Item 7.01 Regulation FD Disclosure
On June 5, 2006, Tidelands Oil & Gas Corporation subsidiary, Terranova
Energia, S.de R.L. de C.V. was awarded a Permit (#G/183/TRA 2006) by the
Comision Reguladora de Energia de Mexico (CRE) to begin construction of the
Terranova Occidente and Oriente pipeline portions of its Burgos Hub
Export/Import Project.
Tidelands Oil & Gas issued a News Release today announcing the permit award
to Terranova Energia, S.de R.L. de C.V. A copy of the News Release is attached
as Exhibit 99.
Limitation on Incorporation by Reference:
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In accordance with General Instruction B.2 of Form 8-K, the information set
forth in this Item 7.01 will not be deemed to be "filed" for purposes of Section
18 of the Securities Exchange Act of 1934, as amended, (the "Exchange Act"), or
otherwise subject to the liabilities of that section, nor will such information
be deemed incorporated by reference in any filing under the Securities Act or
the Exchange Act, except as will be expressly set forth by specific reference in
such a filing. The information set forth in this Item 7.01 will not be deemed an
admission of materiality of any information in this report on Form 8-K that is
required to be disclosed solely to satisfy the requirements of Regulation FD.
Sovereign Risk:
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The risk of indirect or regulatory actions by local, state or federal
authorities in Mexico which may inhibit, delay, hinder or block projects under
development in Mexico is very high given the history of operations conducted by
past businesses other than the Company in Mexico. There is a substantial risk
that a set of actions taken by commission or omission by the various actors in
the public, private, nongovernmental and/or social sectors could negatively
impact a project or investment in Mexico. The legal system employed in Mexico is
dramatically different in its structure and method of operation compared to the
common law foundation present in the United States of America. The level of
legal protection afforded investors by the North American Free Trade Agreement
has not materially improved from a foreign investor's viewpoint.
There can be no assurance that a commercially viable project will be
completed due to the above factors which could result in commercial competitors
trying to circumvent the market system through the exploitation of undocumented,
extra-official channels of influence that constitute unfair competition.
Federal, state and local authorities are not well coordinated in their legal
protections and improper influence and competition may arise from any level of
government to disrupt or destroy the commercial viability of investments by
foreign investors. While the Company has taken precautions to limit its
investments to prudent levels, there is a continuing risk of adverse activities
arising from the above sources that could impair or result in the entire loss of
investment in otherwise commercially viable projects initiated by the Company in
Mexico.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
TIDELANDS OIL & GAS CORPORATION
Dated: June 6, 2006
/s/ Michael Ward
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By: Michael Ward
Title: President