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South Texas Oil Company Reports Financial Results for the Period Ended September 30, 2007

Posted on: Tuesday, 20 November 2007, 09:00 CST

South Texas Oil Company (NASDAQ:STXX), an independent energy company, recently filed its Quarterly Report for the quarter ended September 30, 2007.

Highlights:

Revenues for the quarter were $1,972,822 compared to $173,544 for the same period in 2006, an increase of $1,799,278 or 1,037%. The increase in revenue was generated from increases in oil and gas sales, both through organic growth and acquisitions, as well as drilling operations.

The Company reported a net a loss of $495,143 or $0.03 per share for the 3 months ended September 30, 2007. Expenses related to depreciation, depletion and amortization, interest and financing costs totaled $1,120,750 for the 3 month period. In the Company's recent operations update it noted it would record a gain on sale of non-core assets of approximately $1,062,000 in the third quarter; this gain will instead be recognized and booked in the fourth quarter.

Total assets increased to $63,848,752 for the period ended September 30, 2007, an increase of $59,362,861 or 1,323% from year end 2006 with total liabilities of $28,137,054 for the period ended September 30, 2007.

Murray Conradie, South Texas Oil Company's CEO, stated, "We are very pleased with our progress to date. We are very confident that we have now found our core asset area in our south central Texas properties, and continue to focus our efforts there. We believe that our drilling results continue to demonstrate improvement in drilling and completion techniques, which should result in continued improvements on a per well basis. Furthermore, we are cash flow positive at an operating level and are using our credit facility to accelerate our CAPEX program in 2007 and 2008, so hopefully this trend of results will continue."

About South Texas Oil Company

South Texas Oil Company has mineral interests in approximately 38,000 acres of oil and gas properties made up of approximately 20,000 acres in north east Colorado and 18,000 acres in south central Texas.

Certain statements made in this press release contain forward-looking statements that involve a number of risks and uncertainties. This forward-looking information is based on certain assumptions, including, among others, presently known physical data concerning size and character of reservoirs and economic recoverability. Some of these expectations may be based upon assumptions or judgments that prove to be incorrect. In addition, operations involve numerous risks and uncertainties, many of which are beyond South Texas Oil's control, which could result in expectations not being realized or otherwise materially affect the financial condition, results of operation and cash flows. Additional information regarding these and other risks are contained in South Texas Oil's filings with the Securities and Exchange Commission.

Source: Business Wire

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