South Texas Oil Company Provides Corporate Update
South Texas Oil Company (NASDAQ:STXX), an independent energy company today provided an update on company operations.
Murray Conradie, South Texas Oil Company’s CEO, stated, “With the price of oil where it is today and the savings of having our own drilling rigs prompted us to agree to the mutual cancellation of the sale of our 5,244 acres in Southwest Texas. There are close to 40 infield drilling locations, numerous wells that can be produced from zones behind the pipe as well as the potential for gas gathering.
“We intend updating our capital expenditure budget for 2008 to include the development of our Southwest properties to include the drilling of new wells and fracturing of existing wells in upper zones.
“South Texas Oil Company was disappointed to see the departure of Mr. Rickey Cooksey, our CFO, but we understand it is not always easy to move one’s entire family to a new State. However, we are currently in discussions for a replacement to Mr. Cooksey and we expect to announce a replacement shortly. We have every expectation that our replacement will continue with the standards that we expect at South Texas Oil Company.”
About South Texas Oil Company
South Texas Oil Company has mineral interests in 43,244 acres of oil and gas properties made up of approximately 20,000 acres in the DJ basin in Northeast Colorado, 18,000 acres in South-central Texas and 5,244 acres in Southwest 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.