U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

(Mark One)
[x] QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT
OF 1934
                 For the quarterly period ended June 30, 2005

[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

     For the transition period from ___________ to ___________

                       Commission file number: 000-50732

                           South Texas Oil Company
                  --------------------------------------------
                 (Name of small business issuer in its charter)

        Nevada                                               74-2949620
------------------------                                   --------------
(State or other jurisdiction of                            (IRS Employer
incorporation or organization)                            Identification No.)

 900 NE Loop 410, Suite E-121, San Antonio, TX                 78209
-----------------------------------------------              ---------
    (Address of principal executive offices)                 (Zip Code)

                    210-568-9760 (Telephone)  210-568-9761 (Fax)
                    --------------------------------------------
                           (Issuer's telephone number)

          Nutek Oil, Inc., 6330 McLeod Drive, Suite 1, Las Vegas, NV 89120
          ----------------------------------------------------------------
(Former name, former address and former fiscal year, if changed since last
report)

      Check  whether  the  issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange  Act during the past 12 months (or for such
shorter period that the registrant was  required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days. Yes [X] No [
]

               APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                    PROCEEDING DURING THE PRECEDING FIVE YEARS

Check whether the Registrant filed all documents and reports required to be
filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of
securities under a plan confirmed by a court.
                                                              Yes [ ] No [ ]

                   APPLICABLE ONLY TO CORPORATE ISSUERS

The Registrant has 4,789,171 outstanding, par value $.001 per share as of
August 1, 2005.

Transitional Small Business Disclosure Format (check one): Yes [ ] No [X]




                                       1
<PAGE>

                               TABLE OF CONTENTS

                                                                      Page No.

PART I.  FINANCIAL INFORMATION						 3

Item 1.   Financial Statements......................................   F-1
          Balance Sheet (unaudited).................................   F-2
          Statements of Operations (unaudited)......................   F-3
          Statements of Cash Flows (unaudited)......................   F-4
          Notes to Financial Statements.............................   F-5

Item 2.  Management's Discussion and Analysis of Plan
           of Operation.............................................     4

Item 3. Controls and Procedures.....................................     8


PART II. OTHER INFORMATION

Item 1.   Legal Proceedings.........................................     9

Item 2.   Unregistered Sales of Equity and Use of Proceeds..........     9

Item 3.   Defaults upon Senior Securities...........................    10

Item 4.   Submission of Matters to a Vote of Security Holders.......    10

Item 5.   Other Information..........................................   10

Item 6.   Exhibits and Reports on Form 8-K...........................   10

Signatures...........................................................   11






                                       2
<PAGE>

                            PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

      The condensed financial statements  of  South  Texas Oil Company included
herein  have  been  prepared in accordance with the instructions  to  quarterly
reports on Form 10-QSB  pursuant to the rules and regulations of the Securities
and Exchange Commission.   Certain  information and footnote data necessary for
fair presentation of financial position and results of operations in conformity
with accounting principles generally  accepted  in the United States of America
have been condensed or omitted. It is therefore suggested  that these financial
statements  be  read in conjunction with the summary of significant  accounting
policies  and notes  to  financial  statements  included  in  South  Texas  Oil
Company's Annual Report on Form 10-KSB for the year ended December 31, 2004.

      In the  opinion of management, all adjustments necessary in order to make
the financial position, results of operations and changes in financial position
at June 30, 2005,  and for all periods presented not misleading have been made.
The  results  of operations  for  the  period  ended  June  30,  2005  are  not
necessarily an indication of operating results to be expected for the full year
ending December 31, 2005.





                                      3
<PAGE>

                            SOUTH TEXAS OIL COMPANY, INC.
                         (formerly known as Nutek Oil, Inc.)
                                   BALANCE SHEETS
<TABLE>
<CAPTION>

<S>                                             <C>         <C>


                                                  6/30/05   12/31/04
CURRENT ASSETS:
Cash                                               $26,596     $9,944
Accounts receivable                                 14,672     15,981
						  --------  ---------
TOTAL CURRENT ASSETS                                41,268     25,925

Property and Equipment, net of
    accumulated depreciation                     1,789,608  1,539,089
						----------  ---------
TOTAL ASSETS                                    $1,830,876 $1,565,014
						==========  =========

CURRENT LIABILITIES:
Accounts payable                                   $48,284    $52,164
Related party accrued interest                      14,417     11,500
Line of credit                                      71,186     72,573
Related party payable                              178,361     73,850
Accrued payroll liabilities                          9,890      2,295
Other short term loans                               6,838          -
Related party current portion of long-term debt     70,000    120,000
						----------  ---------
TOTAL CURRENT LIABILITIES                          398,976    332,382

Related Party Long-Term Debt,
   net of current portion                           88,803  1,015,014
						----------  ---------

TOTAL LIABILITIES                                  487,779  1,347,396

STOCKHOLDERS' EQUITY:
Common stock, $0.001 par value, 50,000,000
shares authorized; 4,789,117 and 3,061,474 shares
issued and outstanding at June 30, 2005
and December 31, 2004, respectively                  4,797      3,061
Additional paid-in capital                       1,943,651    730,272
Subscribed Stock                                  (55,266)  (117,250)
Deficit                                          (550,085)  (398,466)
						----------  ---------
TOTAL STOCKHOLDERS' EQUITY                       1,343,097    217,618

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY      $1,830,876 $1,565,014
						==========  =========
</TABLE>


	       The accompanying notes to financial statements are
		an integral part of these financial statements.


				F-1


                            SOUTH TEXAS OIL COMPANY, INC.
                         (formerly known as Nutek Oil, Inc.)
                              STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>

<S>                        <C>         <C>         <C>        <C>


			       6 months ended	    3 months ended
                             6/30/05    6/30/04    6/30/05   6/30/04


Oil and gas sales            $120,386   $105,147   $67,939   $32,365
Interest income                     -      1,135         -        22
Other income                        -         50         -         -
			     --------   --------   -------   -------
  Total revenues              120,386    106,332    67,939    32,387

General and administrative    101,488     90,559    72,387    32,861
Production costs               67,884     62,205    37,950     9,933
Depreciation and amortization  54,756     48,952    28,999    24,504
Interest expense                9,456      9,153     3,119     6,224
Plugging of wells              29,400          -    19,800         -
Production taxes                9,021      3,686     5,175     1,280
			     --------  ---------  --------  --------
   Total expenses             272,005    214,555   167,430    74,802

Income before provision
   for income taxes         (151,619)  (108,223)  (99,491)  (42,415)
Provision for income taxes         -          -         -         -
			     --------  ---------  --------  --------
NET LOSS                   $(151,619) $(108,223) $(99,491) $(42,415)

Basic and diluted weighted
average number of common
shares outstanding         4,431,930  2,977,782 3,568,109 3,007,879

BASIC NET LOSS PER SHARE      $(0.03)    $(0.04)   $(0.03)   $(0.01)

DILUTED NET LOSS PER SHARE    $(0.03)    $(0.04)   $(0.03)   $(0.01)
</TABLE>


	       The accompanying notes to financial statements are
		an integral part of these financial statements.

				F-2


                            SOUTH TEXAS OIL COMPANY, INC.
                         (formerly known as Nutek Oil, Inc.)
                               STATEMENT OF CASH FLOWS


<TABLE>
<CAPTION>

<S>                                              <C>         <C>

						    6 months ended
                                                  6/30/05    6/30/04
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss                                         $(151,619) $(42,415)
ADJUSTMENTS TO RECONCILE NET LOSS TO NET
CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Stock issued for services		             18,055         -
Depreciation and amortization                        54,756    24,504
(Increase) decrease in accounts receivable            1,309     9,241
Increase in prepaid expenses                              -     3,775
Increase in related party accrued interest            2,917     (833)
Increase (decrease) in related party payable         82,825         -
Increase (decrease) in payroll liabilities            7,595     9,679
Increase in accrued arbitration award              (45,000)  (35,000)
Increase (decrease) in accounts payable             (3,880)     8,880
						   --------  --------
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES   (33,042)  (22,169)

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment                (151,563)   (3,589)

CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in related party notes payable              56,144    17,585
Increase in subscribed stock                         61,984    25,000
Increase in line of credit                          (1,387)    10,824
Issuance of stock                                     (484)         -
Sale of common stock                                 40,000         -
						   --------  --------
NET CASH PROVIDED BY FINANCING ACTIVITIES           156,257    53,409
						   --------  --------
NET INCREASE IN CASH                               (28,348)    27,651

BALANCE, BEGINNING                                   54,944     1,731

BALANCE, ENDING                                    $ 26,596   $29,382


INTEREST PAID                                      $      -  $      -
						   --------  --------
TAXES PAID                                         $      -  $      -
						   --------  --------
</TABLE>

	       The accompanying notes to financial statements are
		an integral part of these financial statements.

				F-3

<PAGE>



          SOUTH TEXAS OIL COMPANY (FORMERLY KNOWN AS NUTEK OIL, INC.)

                         NOTES TO FINANCIAL STATEMENTS

NOTE 1 - HISTORY AND ORGANIZATION OF THE COMPANY

South Texas Oil Company (formerly known as Nutek Oil, Inc.) was incorporated on
December  3,  1998.  The company is in the oil producing business in the United
States of America.   The  Company  purchased selected equipment and assets from
Clipper Operating Company and began  operations  as  a  separate company during
2001.


NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

STOCK-BASED COMPENSATION
The  Company  applies  Accounting  Principles  Board  ("APB") Opinion  No.  25,
Accounting  for  Stock  Issued  to  Employees, and Related Interpretations,  in
accounting for stock options issued to  employees.   Under APB No. 25, employee
compensation  cost is recognized when estimated fair value  of  the  underlying
stock on date of  the  grant  exceeds  exercise price of the stock option.  For
stock options and warrants issued to non-employees,  the  Company  applies SFAS
No.   123,   Accounting   for  Stock-Based  Compensation,  which  requires  the
recognition of compensation  cost based upon the fair value of stock options at
the grant date using the Black-Scholes option pricing model.

The following table represents the effect on net loss and loss per share if the
Company had applied the fair value  based  method and recognition provisions of
Statement of Financial Accounting Standards  (SFAS)  No.  123,  "Accounting for
Stock-Based  Compensation", to stock-based employee compensation for the three
months ended June 30, 2005 and the year ended December 31, 2004:

<TABLE>
<S>			<C>			<C>		<C>		<C>
	                     	                          	   6/30/05          2004
Net loss, as reported                   			$   (99,491) 	$ (183,196)
Add:  Stock-based employee compensation expense
      included in reported loss, net of related tax effects		 --		--
Deduct:  Total stock-based employee compensation
      expense determined under fair value based methods
      for all awards, net of related tax effects		         (0)	   (60,926)

Pro forma net loss                   				$   (99,491)	$ (244,122)

Net loss per common share:
Basic and fully diluted loss per share, as reported 		$     (0.03)	$    (0.08)
Basic and fully diluted loss per share, pro forma  		$     (0.03)	$    (0.08)

</TABLE>

There were no stock options granted for the year ended June 30, 2005.  For the
options granted in 2004, the company used the exercise price of $0.46, the fair
market value of $0.25 per share at the end of the year, a 5 year term, and 100%
volatility to determine the value of the options.


In December 2002,  the  FASB  issued  SFAS No. 148, "Accounting for Stock-Based
Compensation-Transition and Disclosure". SFAS No. 148 amends the transition and
disclosure provisions of SFAS No. 123. The Company is currently evaluating SFAS
No. 148 to determine if it will adopt SFAS  No.  123  to  account  for employee
stock options using the fair value method and, if so, when to begin  transition
to that method.

				F-4


          SOUTH TEXAS OIL COMPANY (FORMERLY KNOWN AS NUTEK OIL, INC.)
                         NOTES TO FINANCIAL STATEMENTS


NOTE 3 - OIL PROPERTIES

      Oil properties are made up of the following:

                                            6/30/05           2004
           Leasehold Improvements 	$   707,195       $   707,195
           Equipment and machinery  	  1,593,185         1,288,509
           Accumulated depreciation   	   (510,771)         (456,615)
                                    	-----------	  -----------
                                  	$ 1,789,608       $ 1,539,089

NOTE 4 - LINE OF CREDIT

The  Company has a line of credit agreement with a financial institution  which
provides  maximum  borrowing  of  $75,000.   Interest  on  outstanding balances
accrues at prime plus 2% and is payable monthly.  The current  interest rate at
June 30, 2005 is 8.25%.  The line must be renewed each year.

NOTE 5 - RELATED PARTY TRANSACTIONS

The Company has a note payable to a shareholder, in the amount of $50,000 as of
June  30,  2005.   This obligation is due in 2006 and accrues interest  at  10%
annually.  The accrued  interest  on this loan as of June 30, 2005 was $10,917.
The amounts are considered short term due to the delinquency of payments on the
accrued interest.

The Company has a note payable to a shareholder, in the amount of $20,000 as of
June 30, 2005.  This obligation is  due  in  2006  and  accrues interest at 10%
annually.  The accrued interest on this loan as of June 30,  2005  was  $3,500.
The amounts are considered short term due to the delinquency of payments on the
accrued interest.

The  Company  has an outstanding note payable to Murray Conradie, the Company's
CEO, in the amount of $85,547.  This payable accrues interest at 1% monthly due
on the first day of each month.   The Company also has a note payable to Murray
Conradie, related  to  the  purchase of wells during the 2nd quarter as of June
30, 2005 for $72,879.  This note  is  paid  only from production of the related
wells.

The Company has an outstanding note payable to  Jason  Griffith,  the Company's
CFO, in the amount of $42,698.  This payable accrues interest at 1% monthly due
on the first day of each month.  The Company also has a note payable  to  Jason
Griffith,  related  to  the purchase of wells during the 2nd quarter as of June
30, 2005 for $36,439.  This  note  is  paid only from production of the related
wells.

See Note 6 Stockholder's Equity and Note 8 Purchase of Additional Leases.

				F-5

          SOUTH TEXAS OIL COMPANY (FORMERLY KNOWN AS NUTEK OIL, INC.)
                         NOTES TO FINANCIAL STATEMENTS

NOTE 6 - STOCKHOLDERS' EQUITY

During the three months ended June 30, 2005, the Company sold 177,778 shares of
common stock to accredited investors for $40,000.

During the three months ended June 30, 2005, the Company issued 4,219 shares of
common stock for services rendered valued at $1,055.

During the three months ended June 30, 2005,  the  Company issued 20,000 shares
of common stock to a note holder for interest valued at $5,000.

During the three months ended June 30, 2005, 512,377  shares of common stock in
exchange for fifty percent of the purchase price of additional properties.  See
Note 5 Related Party Transactions and Note 8 Purchase of Additional Leases.

NOTE 7 - WARRANTS AND OPTIONS

The Company has adopted FASB No. 123 and will account for stock issued for
services and stock options under the fair value method.

The  following  table sets forth the options granted in 2004  to  each  of  the
directors and executive officers:

     Option/SAR Grants in Last Fiscal Year (Individual Grants):
<TABLE>
<S>				<C>				<C>
                        Number of    Percent of total
                        Securities   Options/SARs
                        Underlying   granted to	      Exercise or
                        Options/SARS employees in     base price  	Expiration
Name                 	Granted      fiscal year      ($/Share)   	date
----------              ------------ --------------   ----------	-----------
Murray N. Conradie	150,000      20.7             $0.46		4/1/09
                       	200,000      27.7             $0.50  		4/1/14

Jason F. Griffith       100,000      13.8             $0.46  		4/1/09
                        100,000      13.8             $0.50  		4/1/14

David Cummings          50,000	     6.9              $0.46	        4/1/09
                        50,000	     6.9              $0.50       	4/1/14

Conrad Humbke           75,000       10.3	      $0.46	        11/2/09

</TABLE>

There were no other options granted or exercised by the directors and executive
officers during the year ended December 31, 2004.

Compensation  cost   for  options  granted  has  not  been  recognized  in  the
accompanying financial  statements  because  the  exercise  prices exceeded the
current market prices of the Company's common stock on the dates  of grant. The
options  and  warrants expire in April 2014 and are exercisable at prices  from
$0.46 to $0.50 per option or warrant.  See Note 2 for pro-forma information and
calculations.

				F-6


The following is  a  schedule  of  the activity relating to the Company's stock
options and warrants.

                                  Year Ended                   Year Ended
                            	December 31, 2003          December 31, 2004
                                 --------------              --------------
                               	  Weighted Avg.		      Weighted Avg.
                              Shares     Exercise	   Shares    Exercise
                              (x 1,000)  Price    	   (x1,000)  Price
                              ---------  ---------         --------  ---------
Options and warrants
  outstanding at
  beginning of year	              -  $	 -                -  $	     -

Granted:
  Options	                      -  $	 -	        650  $	  0.48
  Warrants		              -  $	 -	          -  $	     -
Exercised 		              -  $	 -	          -  $	     -
Expired:
Warrants	                    ( - )$	 -	          -  $	     -
	                           ----  ---------             ----  ---------

Options and warrants
  outstanding and
  exercisable at end
  of period		              -  $	 -              650  $	     -
                                   ====	 =========	       ====  =========

Weighted average fair
  value of options and
  warrants granted during
  the year                               $	-		     $	     -

The following table summarizes information  about  the  Company's stock options
and warrants outstanding at December 31, 2004, all of which are exercisable.

                   Weighted Average
    Range of           Number      	 Remaining        Weighted Average
 Exercise Prices   Outstanding        Contractual Life    Exercise  Price
       $   -               -        	 0 years         	$   -


NOTE 8 - PURCHASE OF ADDITIONAL LEASES

On April 1, 2005, the Company completed the purchase of the  leases,  farm-outs
and  mineral  interests  held  by  JGM Oil Investments, LLC in Atascosa County,
Texas insofar as they cover the following minimum net revenue interests (NRI).

The Company additionally purchased all of the personal property associated with
the oil wells  on  the  lands  described  in the Purchase Agreement attached as
Exhibit  10.14  including,  but  not  limited to,  all  well  equipment,  spare
equipment and tank batteries.  Equipment will be sold "as is".

The total purchase price was three hundred  seven thousand four hundred twenty-
six dollars ($307,426) made up as follows; Purchase of all mineral acreage at a
price of one hundred dollars ($100.00) per acre.  Total  price  for the acreage
was  sixty  nine  thousand  four  hundred  ten  and  no/100  dollars ($69,410).
Purchase of all equipment was at a depreciated  price  of  forty  five  percent
(45%)  of  the  replacement  value.   Total price for equipment was two hundred
thirty eight thousand sixteen and no/100 dollars ($238,016).

The  method of payment will be as follows; The issuance of five hundred  twelve
thousand  three  hundred  seventy-seven  (512,377)  shares  of  Nutek  Oil, Inc
restricted  stock  representing  fifty  percent (50%) of the purchase price  at
$0.30 per share, calculated as the prior  thirty (30) day average closing price
from the date of closing.  The remaining  amount  of  one  hundred  fifty three
thousand  seven  hundred  thirteen  and  no/100 dollars ($153,713) will be paid
monthly for a period of thirty six (36) months  with  interest of seven percent
(7%) accruing on the outstanding balance.  The monthly payment amount is not to
exceed  the  income from the minimum net revenue interest (NRI) from the  prior
month's production.    Payment  will  be adjusted accordingly and the remaining
balance increased by the monthly shortfall should any occur.

The  purchase  price of the leases and assets  were  based  on  current  market
conditions as well  as  the  historical purchase prices made by the Company for
acreage and a determination of the current replacement value of the equipment.

A material relationship exists between  JGM Oil Investments, LLC and Nutek Oil,
Inc in so far as both Mr. Conradie the President/CEO  and  a  Director of Nutek
Oil, Inc and Mr. Jason Griffith, the Chief Financial Officer and  a Director of
Nutek Oil, Inc have a combined majority ownership of JGM Oil Investments, LLC.


				F-7

NOTE 9 - SUBSEQUENT EVENTS

      On  July  28,  2005,  South  Texas  Oil Company entered  into  a  funding
agreement with institutional and accredited  investors  with  gross proceeds of
$2,300,000,  to be received in two traunches. The first traunch  of  $1,300,000
was received upon  the  execution  of the agreement dated July 28, 2005 and the
remaining $1,000,000 to be received  within  five  days  after  a  to  be filed
registration statement becoming effective, or sooner if certain milestones  are
achieved.

      The  funding  consists of convertible securities which shall convert into
forty-five percent (45%)  equity of the fully diluted shares of South Texas Oil
Company if both traunches are  received.   At  July 28, 2005 on a fully diluted
basis, this would approximate 3,918,456 shares at  $.59 per share.  In addition
1,959,228 warrants with an exercise price of $.574 were also issued to the note
holders.

      South Texas Oil will use the net proceeds of the first traunch to perform
workovers  on  existing  wells, drill two new wells, capital  expenditures  and
working capital. The second  traunch  will  be  used to drill an additional 4-5
wells, if the milestones for the first traunch are met.


				F-8

<PAGE>

Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations.

      The following  is  a  discussion of certain factors affecting South Texas
Oil  Company's results of operations,  liquidity  and  capital  resources.  You
should  read  the  following  discussion  and  analysis in conjunction with the
Registrant's  consolidated  financial statements and  related  notes  that  are
included herein under Item 1 above.

Overview

      South Texas Oil Company  was  formed  for  the purpose of development and
operation of oil properties with proven reserves.  South  Texas  Oil  Company's
strategy is to focus in domestic areas where major oil producing companies have
reduced  their  exploration efforts to move offshore and overseas in search  of
the larger reserves.  Considerable  oil  reserves in proven fields remain to be
exploited by well-managed independent oil companies capable of extracting these
reserves at lower risk and lower cost than  unproved prospects. South Texas Oil
Company's initial development strategy has been  to  acquire such proven fields
and increase production through the application of advanced  technology and the
exploration of other proven formations in the same fields.

      South  Texas  Oil  Company's  primary  operational strategy includes  the
operation of its own projects, giving it substantial  control over drilling and
production  costs.  South  Texas  Oil  Company  has  associated   with   highly
experienced exploration and development engineering and geology personnel  that
strive  to  add  production  at lower costs through development drilling, work-
overs, behind pipe re-completions and secondary recovery operations.

      South Texas Oil derives  its  revenues from its producing oil properties.
These properties consist of working interests  in  producing  oil  wells having
proved reserves.  South Texas Oil Company's capital for investment in producing
oil  properties  has  been  provided  by  the  sale  of  common  stock  to  its
shareholders.

South Texas Oil Company's website address is http://www.southtexasoil.com

South  Texas  Oil  Company  plans  its  future  growth  through  a  balance  of
acquisition  of  working  interests  in  existing  wells  and leases, increased
production on current leases and new drilling on current leases  in  accordance
with  new  State  of  Texas  guidelines of one (1) well per ten (10) acres,  as
opposed to the previous ratio  of  one  (1)  well  per  twenty (20) acres. This
latter strategy of in-fill drilling affords the most potential  for South Texas
Oil Company. The new guidelines will allow South Texas Oil Company to place new
wells  between  existing  wells that have previously produced or are  currently
producing oil.

Short Term Goals

    1. To work over existing  wells  and have all productive wells producing by
       year end.
    2. To drill and complete 2 in-field oil wells before year end.

Long Term Goals

1.  To drill and complete an additional  4-5  in-field  wells  in the 12 months
       following  the drilling of the initial 2 wells should these  2  in-field
       wells produce  a  minimum  of 5 barrels of oil per day.  Funding for the
       drilling of these additional  wells  will  be  provided from the funding
       agreement entered into on July 28, 2005 should production goals be met.

                                       4
<PAGE>

    Concerning   working   capital,   historically  our  revenues   have   been
insufficient to cover operations.  For  the  first six month period ending June
30, 2005, we have experienced approximately $4,725 per  month  in negative cash
flow.  Consequently,  the  Company has relied in part on private placements  of
common stock securities, bank  debt,  and  loans from private investors to meet
operational needs.   However, with revenue expected  to  grow  steadily  in the
third  and  fourth quarter of 2005, we believe that over the next twelve months
there  will be  sufficient  working  capital  generated  from  sales  to  cover
operational needs.  This evaluation is based on the increased price of oil, the
additional  well workovers planned for the year, as well as the drilling of new
wells.  However,  additional  funding will be needed to cover the expenses over
the next several months related  to the drilling of the in-field oil wells.  We
entered into a funding agreement on  July  28,  2004  for which $1,300,000 of a
$2,300,000  commitment  has been received through the issuance  of  convertible
notes  (detailed terms discussed  in  subsequent  events  below).  This  should
provide the necessary capital for our needs over the next twelve months.

Results of Operations

      For the three months ended June 30, 2005 compared to the three months
ended June 30, 2004.

      Oil  sales.   For the three months ended June 30, 2005, oil revenues were
$67,939 compared to $32,365  for  the  same  period during 2004, an increase of
$35,574.  The increase was the result of increased oil production and increased
oil prices.

      Depreciation, depletion and amortization.   Our  depreciation,  depletion
and amortization expenses were $28,999 for the three months ended June 30, 2005
compared  to  $24,504  for the same period in 2004, an increase of $4,495.  The
increased depreciation,  depletion and amortization expenses were the result of
the purchase of additional  equipment  and  leasehold  improvements  during the
period ended June 30, 2005.

      General and administrative expenses.  General and administrative expenses
were  $72,387 for the three months ended June 30, 2005 compared to $32,861  for
the same  period  in  2004, an increase of $39,526. This increase was primarily
related to the increase  in  overhead  as  a result of increased payroll costs,
insurances, travel and lease administrations costs.

      Interest expense (net of interest income).   Interest  expense was $3,119
for the three months ended June 30, 2005 compared to $6,224 for the same period
in  2004,  a  decrease  of  $3,105.  The decrease was due to decreases  in  the
outstanding debt of South Texas Oil Company during the period.

      Net  income (loss).  Net loss increased  from  $(42,415)  for  the  three
months ended  June  30,  2004  to  $(99,491)  for  the same period in 2005. The
primary reasons for this increase include an increase  in professional fees, an
increase in plugging costs for the period of $19,800, an increase in production
taxes of $3,895 and production costs of $28,017.

For the six months ended June 30, 2005 compared to the six  months  ended  June
30, 2004.

      Oil  sales.   For  the  six months ended June 30, 2005, oil revenues were
$120,386 compared to $105,147 for  the  same period during 2004, an increase of
$35,574.  The increase was the result of increased oil production and increased
oil prices.


                                       5
<PAGE>

      Depreciation, depletion and amortization.   Our  depreciation,  depletion
and  amortization expenses were $54,756 for the six months ended June 30,  2005
compared  to  $48,952  for  the same period in 2004, an increase of $5,804. The
increased depreciation, depletion  and amortization expenses were the result of
the purchase of additional equipment  and  leasehold  improvements  during  the
period ended June 30, 2005.

      General and administrative expenses.  General and administrative expenses
were  $101,488  for  the six months ended June 30, 2005 compared to $90,559 for
the same period in 2004,  an  increase  of $10,929. This increase was primarily
related to the increase in overhead as a  result  of  increased  payroll costs,
insurances, travel and lease administrations costs.

      Interest expense (net of interest income).  Interest expense  was  $9,456
for  the  six months ended June 30, 2005 compared to $9,153 for the same period
in 2004, an  increase  of  $303.  The  increase  was  due  to  increases in the
outstanding debt of South Texas Oil Company during the period.

      Net  income (loss).  Net loss increased by $(43,396) from $(108,223)  for
the six months  ended  June 30, 2004 to $(151,619) for the same period in 2005.
The primary reasons for this increase include an increase in professional fees,
an increase in plugging  costs  for  the  period  of  $19,800,  an  increase in
production taxes of $3,895 and production costs of $28,017.

Capital Resources and Liquidity

Liquidity

Management believes that its working interest revenues from the existing  wells
will  meet its minimum general and administrative cost requirements and provide
the basic  liquidity South Texas Oil Company needs to operate at current levels
over the next  twelve  months.   However,  additional funding will be needed to
cover the expenses over the next several months  related to the drilling of the
in-field oil wells.  We entered into a funding agreement  on  July 28, 2004 for
which  $1,300,000  of  a  $2,300,000  commitment has been received through  the
issuance of convertible notes (detailed  terms  discussed  in subsequent events
below). This should provide the necessary capital for our needs  over  the next
twelve months.

For  the six month period ended June 30, 2005 South Texas Oil Company decreased
its working capital position by $51,251 from a negative $306,457 as at December
31, 2004  to a negative $357,708 as of June 30, 2005.  This decrease in working
capital was  a result of an increase of cash on hand of $16,652, an increase in
accounts receivable  of  $1,309,  a  decrease in accounts payable of $3,880, an
increase in related party interest of  $2,917, a decrease in the line of credit
of $1,387, an increase in related party  payables  of  $104,511, an increase in
payroll liabilities of $7,595, an increase in other short  term loans of $6,838
and a decrease in related party long term debt of $50,000.

Capital Resources

    The  Registrant's  capital  resources  are comprised primarily  of  private
investors, including members of management, who are either existing contacts of
South  Texas Oil Company's management or who  come  to  the  attention  of  the
Registrant  through  brokers,  financial institutions and other intermediaries.
South Texas Oil Company's access  to  capital  is always dependent upon general
financial market conditions, especially those which  pertain to venture capital
situations such as oil and gas exploration companies.


                                       6
<PAGE>

Significant Subsequent Events occurring after June 30, 2005:

      On  July  28,  2005,  South  Texas  Oil Company entered  into  a  funding
agreement with institutional and accredited  investors  with  gross proceeds of
$2,300,000,  to be received in two traunches. The first traunch  of  $1,300,000
was received upon  the  execution  of the agreement dated July 28, 2005 and the
remaining $1,000,000 to be received  within  five  days  after  a  to  be filed
registration statement becoming effective, or sooner if certain milestones  are
achieved.

      The  funding  consists of convertible securities which shall convert into
forty-five percent (45%)  equity of the fully diluted shares of South Texas Oil
Company if both traunches are  received.   At  July 28, 2005 on a fully diluted
basis, this would approximate 3,918,456 shares at  $.59 per share.  In addition
1,959,228 warrants with an exercise price of $.574 were also issued to the note
holders.

      South Texas Oil will use the net proceeds of the first traunch to perform
workovers  on  existing  wells, drill two new wells, capital  expenditures  and
working capital. The second  traunch  will  be  used to drill an additional 4-5
wells, if the milestones for the first traunch are met.

Disclosures about Market Risks

      Like  other natural resource producers, South  Texas  Oil  Company  faces
certain unique  market  risks.   The most salient risk factors are the volatile
prices of oil and gas and certain environmental concerns and obligations.

Oil and Gas Prices

      Current competitive factors  in  the  domestic  oil  and gas industry are
unique.   The actual price range of crude oil is largely established  by  major
international producers.  Because domestic demand for oil exceeds supply, there
is little risk that all current production will not be sold at relatively fixed
prices.  To this extent South Texas Oil Company does not see itself as directly
competitive  with other producers, nor is there any significant risk that South
Texas Oil Company  could  not  sell  all  production  at  current prices with a
reasonable  profit  margin.   The  risk of domestic overproduction  at  current
prices is not deemed significant.  The  primary  competitive  risks  would come
from  falling  international  prices  which  could  render  current  production
uneconomical.

Environmental and Government Compliance and Costs.

      All  oil  and  gas  operations  are  subject  to  extensive environmental
permitting and governmental regulation. All drilling and  rework operations are
subject  to  inspection  by local, state and federal regulators.  Violation  of
these requirements or environmentally  damaging spills or accidents due to non-
compliance in these areas can result in fines and, depending on the severity of
the negligence, criminal prosecution. South  Texas Oil Company is not currently
a   party  to  any  judicial  or  administrative  proceedings   which   involve
environmental regulations or requirements and management believes that it is in
substantial compliance with all applicable environmental regulations.

      In  many  cases  there  is  a bond required of operators to ensure that a
prospective well is properly plugged  and  abandoned  when  its  useful life is
determined to be concluded.

      South Texas Oil Company has posted such a bond in the amount  of  $50,000
with  the  Texas  Rail  Road  Commission  to cover its projects. Such bonds are
additions to the cost of South Texas Oil Company's  projects.  The current bond
of $50,000 covers

                                       7
<PAGE>
(cont)

the  wells operated by South Texas Oil Company as required  by  the  Rail  Road
Commission  of  Texas  under  the  Texas Administrative Code, Title 16 Economic
Regulation,  Chapter  3  Oil  and  Gas  Division,   Rule   {section}3.78  Fees,
Performance  Bonds  and Alternate Forms of Financial Security  Required  To  Be
Filed.

Off-Balance Sheet Arrangements.

      South Texas Oil  Company  currently  does  not have any off-balance sheet
arrangements.

Forward-Looking Information

      Certain  statements  in this Section and elsewhere  in  this  report  are
forward-looking in nature and relate to trends and events that may affect South
Texas Oil Company's future financial  position  and  operating  results.   Such
statements  are  made  pursuant  to  the  safe  harbor provision of the Private
Securities  Litigation Reform Act of 1995.  The terms  "expect,"  "anticipate,"
"intend," and  "project"  and  similar  words  or  expressions  are intended to
identify  forward-looking statements.  These statements speak only  as  of  the
date of this  report.   The  statements  are based on current expectations, are
inherently uncertain, are subject to risks,  and should be viewed with caution.
Actual results and experience may differ materially  from  the  forward-looking
statements  as  a  result  of  many  factors,  including  changes  in  economic
conditions  in  the  markets  served  by  South  Texas  Oil Company, increasing
competition, fluctuations in lease operating costs and energy prices, and other
unanticipated events and conditions.  It is not possible to foresee or identify
all such factors.  South Texas Oil Company makes no commitment  to  update  any
forward-looking  statement  or  to disclose any facts, events, or circumstances
after  the date hereof that may affect  the  accuracy  of  any  forward-looking
statement.

Item 3. Controls and Procedures.

      (a)  Our  Chief Executive Officer (CEO) and Chief Financial Officer (CFO)
evaluated the effectiveness  of  our  disclosure  controls  and  procedures (as
defined  in  Rules  13a-15(e) and 15d-15(e) of the Securities Exchange  Act  of
1934, as amended) as  of  the  end  of the period covered by this report. Based
upon their evaluation, the CEO and CFO  concluded  that the disclosure controls
and procedures are effective in ensuring all required  information  relating to
South Texas Oil Company is included in this quarterly report.

       We  also  maintain a system of internal control over financial reporting
(as defined in Rules  13a-15(f)  and  15d-15(f)) designed to provide reasonable
assurance regarding the reliability of  financial reporting and the preparation
of financial statements for external purposes  in  accordance  with  accounting
principles generally accepted in the United States of America. During  our most
recent fiscal quarter, there have been no changes in our internal control  over
financial  reporting  that  occurred  that  have  materially  affected  or  are
reasonably  likely  to  materially  affect  our internal control over financial
reporting.

      (b)   Changes  in  internal  controls.  During  our  most  recent  fiscal
quarter, there have been no changes  in  our  internal  control  over financial
reporting that occurred that have materially affected or are reasonably  likely
to materially affect our internal control over financial reporting.



                                       8
<PAGE>

                            PART II. OTHER INFORMATION
Item 1. Legal Proceedings.

      South  Texas  Oil  Company  is  not a party to any pending material legal
proceeding.  To  the  knowledge  of management,  no  federal,  state  or  local
governmental agency is presently contemplating  any  proceeding  against  South
Texas Oil Company.

To the knowledge of management, no director, executive officer or affiliate  of
South  Texas Oil Company is a party adverse to South Texas Oil Company or has a
material interest adverse to South Texas Oil Company in any proceeding.

Item 2. Unregistered Sales of Equity Security and Use of Proceeds.

      During  the  three  months  ended  June 30, 2005, South Texas Oil Company
issued securities using the exceptions available  under  the  Securities Act of
1933  including  unregistered  sales  made  pursuant  to  Section 4(2)  of  the
Securities Act of 1933 as follows:

      On April 1, 2005, 256,189 restricted shares of common  stock  were issued
to  Mr.  Conradie,  the  President/CEO  and Director of South Texas Oil Company
valued at $76,857 for an average price of $.30 per share.

      On April 1, 2005, 128,094 restricted  shares  of common stock were issued
to Mr. Griffith, the Chief Financial Officer and Director  of  South  Texas Oil
Company valued at $38,428 for an average price of $.30 per share.

      On  April 1, 2005, 128,094 restricted shares of common stock were  issued
to the remaining shareholders of JGM Oil Investments, LLC valued at $38,428 for
an average price of $.30 per share.

      On April  12,  2005,  177,778 shares of restricted common stock valued at
$40,000 for an average price  of  $.225  per  share were sold to two accredited
investors, M. Walker and J. Satler, as such term  is  defined  in  Rule  501 of
Regulation D promulgated under the Securities Act of 1933, using the exceptions
available  under  the  Securities Act of 1933 including unregistered sales made
pursuant to Section 4(2) of the Securities Act of 1933.

      On April 13, 2005,  South  Texas  Oil Company agreed to April 27, 2005 as
the record date for the issuance of 957,349  shares  of restricted common stock
of South Texas Oil Company that Datascension Inc. (the  parent company prior to
the  spin-off  of  South  Texas  Oil  Company)  had an interest  in  valued  at
$1,003,831.

      On  May  26, 2005, 20,000 shares of restricted  common  stock  valued  at
$5,000 for an average  price of $.25 per share were issued to five individuals,
Mrs. Charlotte Head, Mr.  P.R.  Maupin,  Mr. Roy S. Miller, Mr. C. A. McCulloch
and the estate of John V. Head, in consideration  for an option to purchase oil
production royalties held by them.

      On June 23, 2005, 4,564 shares of restricted  common  stock valued $2,000
for  an  average  price  of  $.438  per share were issued to Dave Cummings,  an
employee in consideration for employment services previously rendered.

      All of these transactions were  exempt from the registration requirements
of the Securities Act of 1933, as amended, by virtue of the exemptions provided
under section 4(2) was available because:

 -   The  transfer  or  issuance  did  not involve  underwriters,  underwriting
    discounts or commissions;

                                       9
 <PAGE>
 (cont)

 -  The  shares  were  purchased for investment  purposes  without  a  view  to
    distribution;
 -  A restriction on transfer legend was placed on all certificates issued;
 -  The distributions did not involve general solicitation or advertising; and,
 -  The distributions were  made  only  to  insiders,  accredited  investors or
    investors  who  were  sophisticated  enough  to  evaluate the risks of  the
    investment.  Each shareholder was given access to all information about our
    business and the opportunity to ask questions and receive answers about our
    business from our management prior to making any investment decision.

Item 3.  Defaults Upon Senior Securities

      None.

Item 4.  Submission of Matters to a Vote of Security Holders

      None.

Item 5.  Other Information

      None.

Item 6.  Exhibits and Reports on Form 8-K

Exhibits

      (a)  Exhibit 31. Certifications required by Rule  13a-14(a)  or Rule 15d-
14(a)

     31.1 Certification of Chief Executive Officer pursuant to 18 U.S.C.ss.1850
as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

     31.2   Certification   of  Principal  Financial  Officer  pursuant  to  18
U.S.C.ss.1850 as adopted pursuant  to  Section 302 of the Sarbanes-Oxley Act of
2002.

      (b)  Exhibit 32. Certifications required  by  Rule 13a-14(b) or Rule 15d-
14(b) and section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350

    32.1 Certification of Chief Executive Officer pursuant  to 18 U.S.C.ss.1850
as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

     32.2  Certification  of  Principal  Financial  Officer  pursuant   to   18
U.S.C.ss.1850  as  adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.

Reports on Form 8-K

(a)   Report on Form 8-K filed August 1, 2005, items 1.01 and 9.01.

      On August 1, 2005, South Texas Oil Company filed a Current Report on Form
8-K, relating to the  entering  into a funding agreement from institutional and
accredited investors with gross proceeds  of  $2,300,000, to be received in two
traunches.  The  first traunch of $1,300,000 received  upon  execution  of  the
agreement and the  remaining  $1,000,000  within  five days after a to be filed
registration statement becomes effective, or sooner  if  certain milestones are
achieved.

      The funding consists of convertible securities which  shall  convert into
forty-five percent (45%) equity of the fully diluted shares of South  Texas Oil
Company if both traunches are received.

                                       10
<PAGE>

      South Texas Oil will use the net proceeds of the first traunch to perform
workovers  on  existing  wells,  drill two new wells, capital expenditures  and
working capital. The second traunch  will  be  used  to drill an additional 4-5
wells, if the milestones for the first traunch are met.

      Additionally,  the  Company  entered  into  Lock-Up Agreements  with  the
following board members of the Company; Murray Conradie  and Jason Griffith. In
this  Agreement,  these  board  members agreed not to sell any  shares  in  the
Company's Common Stock owned by them  for  a period of 12 months, or until such
time as certain milestones have been met.

SIGNATURES

      In accordance with Section 13 or 15(d) of the Exchange Act, the
registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.

                                  South Texas Oil Company

                                  /s/ Murray N. Conradie
                                  ----------------------
                                  Murray N. Conradie,
                                  President, Chairman and Director
                                  (Principal Executive Officer)

                                  /s/ Jason Griffith
                                  -------------------
                                  Jason Griffith, CPA
                                  Chief Financial Officer and Director
                                  (Principal Financial Officer)

                                  Date: August 10, 2005

      Pursuant to the requirements of Section 12 of the Securities Exchange Act
of 1934, the registrant has duly caused this  report to be signed on its behalf
by the undersigned, thereunto duly authorized.

                                  /s/ Murray N. Conradie
                                  ----------------------
                                  Murray N. Conradie,
                                  President, Chairman and Director
                                  (Principal Executive Officer)

                                  /s/ Jason Griffith
                                  -------------------
                                  Jason Griffith, CPA
                                  Chief Financial Officer and Director
                                  (Principal Financial Officer)

                                  Date: August 10, 2005









                                      11