Tidelands Oil & Gas pays obligation on defaulted debentures

By Sheri Kasprzak

New York, Sept. 25 - Tidelands Oil & Gas Corp. has paid an obligation of $791,375 owed to one of the holders of its defaulted discounted notes.

The company had previously corrected the default by paying liquidated damages to the holders. However, RHP Master Fund, Ltd. had demanded accelerated payment in the mandatory default amount, equal to 130% of principal plus interest.

The debentures, due Jan. 20, 2008, were issued in January 2006 in principal of $6,569,750 for proceeds of $5,396,098. The debentures had been convertible at $0.87.

Tidelands, based in San Antonio, transports and stores natural gas and natural gas liquids.

The company's stock gained 10.91%, or 6%, to close at $0.61 (OTCBB: TIDE).

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