<PAGE>
                    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 March 31, 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 4,766,607 outstanding, par value $.001 per share as of May
13, 2005.

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




                                       1
<PAGE>


                               TABLE OF CONTENTS

                                                                      Page No.

PART I.  FINANCIAL INFORMATION

Item 1.   Financial Statements......................................     3
          Balance Sheet (unaudited).................................     4
          Statements of Operations (unaudited)......................     5
          Statements of Cash Flows (unaudited)......................     6
          Notes to Financial Statements.............................  7-10

Item 2.  Management's Discussion and Analysis of Plan
           of Operation.............................................    11

Item 3. Controls and Procedures.....................................    14


PART II. OTHER INFORMATION

Item 1.   Legal Proceedings.........................................    15

Item 2.   Unregistered Sales of Equity and Use of Proceeds..........    15

Item 3.   Defaults upon Senior Securities...........................    16

Item 4.   Submission of Matters to a Vote of Security Holders.......    16

Item 5.   Other Information..........................................   16

Item 6.   Exhibits and Reports on Form 8-K...........................   16

Signatures...........................................................   17


























                                       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 March 31, 2005, and for all periods presented not misleading have been made.
The results of  operations  for  the  period  ended  March  31,  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>

                                                         As of      As of
                                                         3/31/05   12/31/04
      Current Assets:
      Cash                                              $  28,147  $  9,944
      Accounts receivable                                  27,193    15,981
      Prepaid expenses                                      1,289         -
                                                        --------- ---------
      Total current assets                                 56,629    25,925

      Property and Equipment, net of
         accumulated depreciation                       1,511,182 1,539,089
                                                        --------- ---------
      Total Assets                                      1,567,811 1,565,014
                                                        ========= =========

      Current Liabilities:
      Accounts payable                                  $  51,854  $ 52,164
      Related party accrued interest                       12,667    11,500
      Line of credit                                       73,747    72,573
      Related party payable                               104,738    73,850
      Accrued payroll liabilities                          11,984     2,295
      Related party current portion of long-term debt      70,000   120,000
                                                        --------- ---------
      Total current liabilities                           324,990   332,382

      Related Party Long-Term Debt,
      net of current portion                                    - 1,015,014
                                                        --------- ---------
      Total Liabilities                                   324,990 1,347,396

      Stockholders' Equity:
      Common stock, $0.001 par value, 50,000,000
      shares authorized; 4,074,743 and 3,061,474 shares
      issued and outstanding at March 31, 2005
      and December 31, 2004, respectively                   4,075     3,061
      Additional paid-in capital                        1,744,606   730,272
      Subscribed Stock                                   (55,266) (117,250)
      Deficit                                           (450,594) (398,466)
                                                        --------- ---------
      Total stockholders' equity                        1,242,821   217,618
                                                        --------- ---------
      Total Liabilities and Stockholders' Equity        1,567,811 1,565,014
                                                        ========= =========
      </TABLE>

      		  See Notes to the Financial Statements



                                     4
<PAGE>

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

      <S>                                             <C>            <C>

                                                  3 months      3 months
                                                ended 3/31/05 ended 3/31/04

      Revenue
      Oil and gas sales                                52,447        72,782
      Interest income                                       -            60
      Other Income                                          -         1,053
                                                      -------     ---------
           Total Revenues                              52,447        73,895

      Expenses

      General and administrative                       29,101        57,239
      Production costs                                 29,934        48,424
      Depreciation, depletion, and amortization        25,757        24,448
      Interest expense                                  6,337         2,929
      Plugging of wells                                 9,600             -
      Production taxes                                  3,846         6,613
      Other expense                                         -            50
                                                      -------     ---------
           Total expenses                             104,575       139,703
      Income before provision for income taxes       (52,128)      (65,808)
      Provision for income taxes                            -             -
                                                      -------     ---------
      Net Loss                                       (52,128)      (65,808)
                                                      =======      ========


      Basic and diluted weighted average number
      of common shares outstanding                  3,568,109     2,992,954

      Basic Net Loss Per Share                         (0.01)        (0.02)

      Diluted Net Loss Per Share                       (0.01)        (0.02)
      </TABLE>



         		  See Notes to the Financial Statements












                                          5
<PAGE>

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

      <TABLE>
      <CAPTION>

      <S>                                                   <C>            <C>

                                                         3 months      3 months
                                                    ended 3/31/05 ended 3/31/04

      Cash Flows from Operating Activities:
Net loss                   	                          $(52,128)    $(65,808)
Adjustments to reconcile net loss to net
cash provided (used) by operating activities:
Services received for stock                     	    12,000       15,073
Depreciation and amortization                 	            25,757       24,448
(Increase) decrease in accounts receivable   	           (11,212)       6,321
Increase in prepaid expenses                 	            (1,289)        -
Increase in related party accrued interest    	             1,167        1,833
Increase (decrease) in related party payable     	   (50,000)        -
Increase (decrease) in payroll liabilities       	     9,689         -
Increase (decrease) in accounts payable          	      (310)       2,120
                                                           ---------     -------
Net cash provided (used) by operating activities 	   (66,326)     (16,013)

Cash Flows from Investing Activities:
Purchase of property and equipment                           2,150        (800)
                                                          ---------     -------

Cash Flows from Financing Activities:
Increase in related party notes payable                      19,705     251,520
Increase in subscribed stock                                 61,984    (272,610)
Increase in line of credit                                    1,174     (11,241)
Issuance of stock                                              (484)         -
                                                          ---------     -------
Net cash provided by financing activities                    82,379     (32,331)
                                                          ---------     --------
Net Increase in Cash                                      $  18,203    $(49,144)
                                                          ---------     --------

Balance, Beginning                                            9,944      50,876

Balance, Ending                                           $  28,147      $1,732
                                                          ---------     --------

Interest Paid                                             $   6,337      $2,929
                                                          ---------     --------
Taxes Paid                                                $       -      $   -
                                                          ---------     --------

      </TABLE>



            		  See Notes to the Financial Statements



                                          6
<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. South Texas Oil Company is involved in the development  and
operation of oil  properties  with  proven  reserves  in  the  United States of
America. South Texas Oil 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

South Texas Oil 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, South  Texas  Oil  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
South Texas Oil 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  March  31,  2005  and the year ended December 31,
2004:

                                                  3/31/05            2004
      Net loss, as reported                   $   (52,128)    $  (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                                --          (60,926)
                                                ----------     ----------

         Pro forma net loss                   $   (52,128)    $ (244,122)

         Net loss per common share:
             Basic and fully diluted
             loss per share, as reported    $     (0.01)   $    (0.08)
             Basic and fully diluted
             loss per share, pro forma      $     (0.01)   $    (0.08)

There were no stock options granted for the 3 months ended March 31, 2005.  For
the options granted in 2004, South Texas Oil 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.



                                       7
<PAGE>

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

                         NOTES TO FINANCIAL STATEMENTS

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont)

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.  South  Texas Oil 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.

NOTE 3 - OIL PROPERTIES

      Oil properties are made up of the following:

                                        3/31/05              2004
           Leasehold Improvements   $   707,195       $   707,195
           Equipment and machinery    1,285,758         1,288,509
           Accumulated depreciation    (481,771)         (456,615)
                                    ------------      -----------
                                    $ 1,511,182       $ 1,539,089
NOTE 4 - LINE OF CREDIT

South Texas Oil  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 March 31, 2005 is 7.25%.   The  line  must  be renewed
each year.

NOTE 5 - RELATED PARTY TRANSACTIONS

South  Texas Oil Company has a note payable to a shareholder, in the amount  of
$50,000  as  of  March  31,  2005.  This  obligation is due in 2006 and accrues
interest at 10% annually.  The accrued interest  on  this  loan as of March 31,
2005 was $9,667.  The amounts are considered short term due  to the delinquency
of payments on the accrued interest.

South Texas Oil Company has a note payable to a shareholder, in  the  amount of
$20,000  as  of  March  31,  2005.  This  obligation is due in 2006 and accrues
interest at 10% annually.  The accrued interest  on  this  loan as of March 31,
2005 was $3,000.  The amounts are considered short term due  to the delinquency
of payments on the accrued interest.

South  Texas  Oil  Company has an outstanding note payable to Murray  Conradie,
South Texas Oil Company's  CEO, in the amount of $61,252.  This payable accrues
interest at 1% monthly due on the first day of each month.

South Texas Oil Company has  an  outstanding  note  payable  to Jason Griffith,
South Texas Oil Company's CFO, in the amount of $43,486.  This  payable accrues
interest at 1% monthly due on the first day of each month.

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) has  an  interest  in  valued at
$1,003,831.  The  South  Texas  Oil  Company restricted common shares are being
distributed to Datascension

                                       8
<PAGE>

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

                         NOTES TO FINANCIAL STATEMENTS

NOTE 5 - RELATED PARTY TRANSACTIONS (cont)

Inc.  shareholders  in  a  ratio of one share  of  South  Texas  Oil  Company's
restricted common stock for  approximately  every  18  shares  of  Datascension
common  stock  they  own.   As Datascension currently has no fractional  shares
outstanding, no fractional shares  of South Texas Oil Company common stock will
be distributed in the distribution. This issuance is reflected in the financial
statements as of March 31, 2005.  (See Note 7 Subsequent Events.)

NOTE 6 - STOCKHOLDERS' EQUITY

During the three months ended March  31,  2005, South Texas Oil Company did not
sell any shares of common stock.

During the three months ended March 31, 2005,  South  Texas  Oil Company issued
49,180 shares of common stock for services rendered valued at $12,000.

During the three months ended March 31, 2005, South Texas Oil  Company   issued
6,740 shares of  common  stock  as  an  adjustment  to  a  prior  issuance   to
correct   an administrative error.

During the three months ended March 31, 2005, 957,349 shares of common stock in
exchange  for  the settlement of $1,003,831 of debt.  (See Note 5 Related Party
Transactions.)

NOTE 7 - SUBSEQUENT EVENTS

On April 1, 2005, South Texas Oil 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).

South Texas Oil 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

                                       9
<PAGE>

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

                         NOTES TO FINANCIAL STATEMENTS

NOTE 7 - SUBSEQUENT EVENTS (cont)

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 South Texas Oil Company for
acreage and a determination of the current replacement value of the equipment.

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


















                                       10
<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.

Results of Operations

      For the three months ended March 31, 2005 compared to the three months
ended March 31, 2004.

      Oil  sales.  For the three months ended March 31, 2005, oil revenues were
$52,447 compared  to  $72,782  for  the  same period during 2004, a decrease of
$20,335.  The decrease was the result of lower oil production while South Texas
Oil Company searched for a replacement pumper during this period.

      Depreciation, depletion and amortization.   Our  depreciation,  depletion
and  amortization  expenses  were $25,757 for the three months ended March  31,
2005 compared to $24,448 for the  same  period  in 2004, an increase of $1,309.
The increased depreciation, depletion and amortization expenses were the result
of  the purchase of miscellaneous equipment and leasehold  improvements  during
the period ended March 31, 2005.

      General and administrative expenses.  General and administrative expenses
were  $29,101 for the three months ended March 31, 2005 compared to $57,239 for
the same  period  in  2004,  a decrease of $28,138. This decrease was primarily
related  to the reduction in overhead  and  a  decrease  in  professional  fees
related to  the  Form  10  Registration filed during the period ended March 31,
2004.

                                       11
<PAGE>
      Interest expense (net  of  interest income).  Interest expense was $6,337
for the three months ended March 31,  2005  compared  to  $2,929  for  the same
period in 2004, an increase of $3,408. The increase was due to increases in the
outstanding debt of South Texas Oil Company during the period.

      Net  income  (loss).   Net  loss  decreased  from $(65,808) for the three
months  ended  March 31, 2004 to $(52,128) for the same  period  in  2005.  The
primary reasons  for this decrease include a reduction in professional fees and
reduction in overhead, which was offset by a reduction in the revenue.

Significant Subsequent Events occurring after March 31, 2005:

      Effective April  1, 2005, the Certificate of Incorporation was amended to
change the name of the corporation  from  Nutek  Oil,  Inc., to South Texas Oil
Company.

      On April 1, 2005, South Texas Oil 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).

Minimum Net Revenue Interest (NRI)

A.  G.O. Davidson Lease,  a  minimum  of a seventy and 4/10 percent (70.4%) net
revenue interest (NRI).

B.  Oldjamie Lease, a minimum of a sixty  five  and  925/1000 percent (65.925%)
net revenue interest (NRI).

C.  Diamond Head Lease, a minimum of a fifty seven percent  (57%)  net  revenue
interest (NRI).

D.   Fowler  A Lease, a minimum of a fifty eight and 1/8 percent (58.125%)  net
revenue interest (NRI).

E.  Fowler C Lease,  a  minimum  of  a  sixty  three  percent (63%) net revenue
interest (NRI).

      South  Texas  Oil  Company  additionally purchased all  of  the  personal
property associated with the oil wells  on  the lands described in the Purchase
Agreement, 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). (See Exhibit 10.14
filed with the 8-K Current Report on April 7, 2005.)

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

      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
                                       12
<PAGE>
(cont)

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.  (See
8-K Current Report filed on April 14, 2005.)

Capital Resources and Liquidity

For the three month period  ended  March  31,  2005  South  Texas  Oil  Company
increased its working capital from a negative $306,457 as at December 31,  2004
to  a negative $268,361 as at March 31, 2005.  This increase in working capital
was a result of an increase of cash on hand of $18,203, an increase in accounts
receivable of $11,212, an increase in prepaid expenses of $1,289, a decrease in
accounts  payable  of $310, an increase in related party interest of $1,167, an
increase in the line of credit of $1,174, an increase in related party payables
of $30,888, an increase  in  payroll  liabilities  of  $9,689 and a decrease in
related party long term debt of $50,000.

On  March  31,  2005  South  Texas Oil Company had total assets  of  $1,567,811
compared to $1,565,014 on December 31, 2004, an increase of $2,797.  The reason
for the increase in assets is  a  result  of  the  increase  in cash on hand of
$18,203, an increase in accounts receivable of $11,212, and increase in prepaid
expenses  of  $1,289  along with a corresponding decrease in the  Property  and
Equipment values $27,907 related to depreciation. South Texas Oil Company had a
total stockholders' equity of $1,242,821 on March 31, 2005 compared to $217,618
on December 31, 2004, an  increase  in  equity  of  $1,025,203  related  to the
decrease in long term debt.

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.
                                       13
<PAGE>
(cont)

      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 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.



                                      14
<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 March 31, 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  March 31, 2005, 12,205 shares of restricted common  stock  valued  at
$3,000 for  an  average  price of $.246 per share were issued to an employee in
consideration for employment services previously rendered.

      In the period subsequent  to  March  31,  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 valued at
$76,857 for an average price of $.30 per share were issued to Mr. Conradie, the
President/CEO and Director of  South  Texas Oil Company for the purchase of the
leases, farm-outs and mineral interests held by JGM Oil Investments, LLC.

      On April 1, 2005, 128,094 restricted  shares  of  common  stock valued at
$38,428 for an average price of $.30 per share were issued to Mr. Griffith, the
Chief  Financial  Officer  and  Director  of  South  Texas Oil Company for  the
purchase  of  the  leases,  farm-outs and mineral interests  held  by  JGM  Oil
Investments, LLC.

      On April 1, 2005, 128,094  restricted  shares  of  common stock valued at
$38,428  for an average price of $.30 per share were issued  to  the  remaining
shareholders  of JGM Oil Investments, LLC for the purchase of the leases, farm-
outs and mineral interests held by JGM Oil Investments, LLC.

      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 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.

      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:

                                      15
<PAGE>
(cont)

 -   The transfer  or  issuance  did  not  involve  underwriters,  underwriting
    discounts or commissions;
 - 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 April 7, 2005, items 1.01, 2.01, 3.02 and 9.01.

      On April 7,  2005, South Texas Oil Company filed a Current Report on Form
8-K, relating to the  Executive  Stock  Option Agreement filed as Exhibit 10.13
with the Current Report detailing the options  offered  to  Conrad  Humbke as a
result of his Board Appointment.

      Additionally  on  April  7,  2005,  South Texas Oil Company reported  the
purchase  of  the  leases, farm-outs and mineral  interests  held  by  JGM  Oil
Investments, LLC in Atascosa County. The total purchase price was three hundred
seven thousand four

                                       16
<PAGE>
(cont)

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).

(b)   Report on Form 8-K filed April 14, 2005, item 3.02.

      On April 14, 2005, South Texas Oil Company filed a Current Report on Form
8-K,  relating to South Texas Oil Company agreeing 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.

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: May 16, 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: May 16, 2005




                                      17