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, 2007

[ ] 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.)

            2802 Flintrock Trace, Suite 252, Austin, TX      78738
  -------------------------------------------              ----------
  (Address of principal executive offices)                 (Zip Code)

                 (512)371-4152 (Telephone) (512)263-5046 (Fax)
                  -------------------------------------------
(Issuer's telephone number)

      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 15,513,841 outstanding, par value $.001 per share as of
August 19, 2007.

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





                                       1
<PAGE>

                               TABLE OF CONTENTS

                                                                      Page No.

PART I.  FINANCIAL INFORMATION

Item 1.   Consolidated Financial Statements.........................    F-1
          Consolidated Balance Sheet (unaudited)....................    F-2
          Consolidated Statement of Operations (unaudited)..........    F-3
          Statement of Changes in Stockholders Equity (unaudited)...    F-4
          Consolidated Statement of Cash Flows (unaudited)..........    F-5
          Notes to Consolidated Financial Statements.................   F-6

Item 2.  Management's Discussion and Analysis of Financial Condition and
Results
           of Operation.............................................     3

Item 3. Controls and Procedures.....................................     7


PART II. OTHER INFORMATION

Item 1.   Legal Proceedings.........................................     8

Item 2.   Unregistered Sales of Equity Security and Use of Proceeds...   8

Item 3.   Defaults upon Senior Securities...........................     8

Item 4.   Submission of Matters to a Vote of Security Holders.......     8

Item 5.   Other Information..........................................    9

Item 6.   Exhibits and Reports on Form 8-K...........................    9

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























                                       2
<PAGE>

                            PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

      The  condensed  consolidated  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 consolidated financial  statements
included in South Texas Oil Company's Annual Report on Form 10-KSB for the year
ended December 31, 2006.

      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, 2007, and for all periods presented not misleading have been  made.
The  results  of  operations  for  the  period  ended  June  30,  2007  are not
necessarily an indication of operating results to be expected for the full year
ending December 31, 2007.





















                                      F-1
<PAGE>

                            SOUTH TEXAS OIL COMPANY
                           CONSOLIDATED BALANCE SHEETS


                                                 6/30/07     12/31/06
CURRENT ASSETS:
Cash and cash equivalents                          $638,940  $1,273,150
Accounts receivable                               1,916,867      40,230
Prepaid expenses                                     37,312       8,249
						  ---------   ---------
TOTAL CURRENT ASSETS                              2,593,119   1,321,629

Office equipment, net of depreciation                53,640      30,206
Vehicles, net of depreciation                       125,185      22,033
Drilling rigs, net of depreciation                1,606,680           -
Proved reserves, net of depletion                11,857,277   2,024,548
Unproved reserves, net of depletion              26,520,731   1,085,975

OTHER ASSETS
Debt Issuance Cost				  4,909,146           -
Deposits                                              1,500       1,500
						  ---------   ---------
Total Other Assets                                4,910,646	  1,500
						  ---------   ---------
TOTAL ASSETS                                    $47,667,277  $4,485,891
						 ==========   =========

CURRENT LIABILITIES:
Accounts payable & Accrued expenses              $1,252,880     $17,252
Asset retirement obligation                          28,283      28,283
Other short term loans                               15,177           -
Related party current portion of long-term debt      22,661      21,805
						  ---------   ---------
TOTAL CURRENT LIABILITIES                         1,319,001      67,340

Long term loans
Asset retirement obligation, long term              444,265     430,777
Long term notes payable                           3,545,316           -
Line of Credit                                    7,445,000           -
Related party L.T. debt, net of current portion      21,103      46,176
						  ---------   ---------
  Total Liabilities                              12,774,685     544,293

STOCKHOLDERS' EQUITY:
Preferred stock, $0.001 par value
    5,000,000 shares authorized, none issued
Common stock, $0.001 par value, 50,000,000
shares authorized; 15,513,841 shares issued
and outstanding at June 30, 2007	             15,516      13,445
Additional paid-in capital                       38,392,806  13,580,620
Subscribed stock                                          -  (7,500,000)
Deferred compensation                              (30,875)	      -
Accumulated deficit                             (3,484,854) (2,152,467)
						  ---------   ---------
TOTAL STOCKHOLDERS' EQUITY                       34,892,592   3,941,598
						 ----------   ---------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY      $47,667,277  $4,485,891
						 ==========   =========


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

                                      F-2
<PAGE>


                            SOUTH TEXAS OIL COMPANY
                      CONSOLIDATED STATEMENTS OF OPERATIONS
		FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2007 AND 2006
 	  			   UNAUDITED

<TABLE>
<CAPTION>

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


                                         3 MONTHS ENDED3 MONTHS ENDED6 MONTHS ENDED6 MONTHS ENDED
                                            6/30/07       6/30/06       6/30/07       6/30/06

REVENUE
Oil and gas sales                              $796,412      $164,459      $891,895      $272,709
Drilling rig income                             522,501             -       522,501             -
					    -----------	     --------    -----------	---------
    Total revenues                            1,318,914       164,459     1,414,397       272,709

EXPENSES

General and administrative                      250,576       113,149       466,315       176,558
Drilling rig costs                              474,344                     474,344
Production costs                                408,564        25,556       436,773        61,119
Depreciation, depletion, and amortization       340,166        33,822       403,672        65,245
Asset retirement obligation expense               6,799             -        13,488             -
Plugging of wells                                     -         7,772             -        40,855
Production taxes                                  2,194             -         4,796         3,453
					    -----------	     --------    -----------	---------
     Total expenses                           1,482,643       180,299     1,799,388       347,230

OTHER INCOME (EXPENSE)
Interest income                                   7,162        15,372        20,184        26,689
Forgiveness of debt                                   -        12,222             -        12,222
Interest expense                              (640,205)     (111,547)     (967,580)     (159,303)
					    -----------	     --------    -----------	---------
    Total other income (expense)              (633,043)      (83,953)     (947,396)     (120,392)

Income before provision for income taxes      (796,772)      (99,793)   (1,332,387)     (194,913)
Provision for income taxes                            -             -             -             -
					    -----------	     --------    -----------	---------
NET LOSS                                     $(796,772)     $(99,793)  $(1,332,387)    $(194,913)


BASIC WEIGHTED AVERAGE NUMBER
OF COMMON SHARES OUTSTANDING                 11,094,486     8,290,424    13,316,372     6,592,050

BASIC NET LOSS PER SHARE                        $(0.07)       $(0.01)       $(0.10)      $(0.03)

</TABLE>


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



                                      F-3
<PAGE>

                            SOUTH TEXAS OIL COMPANY
                  CONSOLIDATED STATEMENT CHANGES IN STOCKHOLDER EQUITY
			FOR THE SIX MONTHS ENDED JUNE 30, 2007
 	  			   UNAUDITED
<TABLE>
<CAPTION>

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

                         Common    Common  Additional
                          Stock    Stock    Paid-in    Subscribed         Income       Total
                         Shares    Amount   Capital       Stock           Deficit      Equity
			----------  ------  ---------  -----------	----------    ----------

Balance at 12/31/06 	 13,444,743 $13,446 $13,580,620 $(7,500,000)    $(2,152,467)     $3,941,598

Issued for royalty payment 13,098     $13       $74,146                 $	-        $   74,159

Issued related to cashless
   conversion of options  50,000     $50          $(50)                 $	-        $       -

Issued for services      6,000       $6     $    56,994    $(30,875)    $	-        $   26,125

Warrants issued in accordance
   with loan agreement      -        $-     $ 5,700,945           $-    $	-        $ 5,700,945

 Purchase of Leexus
     Properties       2,000,000   $2,000    $18,978,000           $-    $	-        $18,980,000

Purchase of Colorado Leases                             $7,500,000                    $ 7,500,000

Contribution of
     vehicle-related party   -      $-      $    2,151                 $	-        $    2,151

  Net (loss) for period
   ending June 30, 2007      -      $-          $-                    $(1,332,387)       $(1,332,387)
			----------  ------  ---------  -----------	---------        ----------
                        15,513,841 $15,516 $38,392,806    $(30,875)   $(3,484,854)       $34,892,592
			----------  ------  ---------  -----------	---------        ----------
</TABLE>







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

                                   F-4

                            SOUTH TEXAS OIL COMPANY
                            STATEMENT OF CASH FLOWS
		FOR THE SIX MONTHS ENDED JUNE 30, 2007 AND 2006
 	  			   UNAUDITED

<TABLE>
<CAPTION>

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


                                                6 months ended 6 months ended
                                                   06/30/07        06/30/06
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss                                          $(1,332,387)    $(194,913)

Stock issued for services and purchases                 26,125       (3,055)
Stock issued for settlement of debt and interest             -       100,620
Debt issuance costs related to funding                 791,800             -
Depreciation, depletion and amortization               403,672        65,245
(Increase) decrease in accounts receivable         (1,876,637)      (33,079)
(Increase) in deposits			                     -       (2,550)
(Increase) decrease in prepaid expenses               (29,063)       (7,849)
Increase in related party accrued interest                   -       (9,000)
Increase in accrued interest                                 -        47,690
Increase in asset retirement obligation                 13,488		   -
(Decrease) in payroll liabilities	                     -      (47,267)
Increase in accounts payable		             1,235,628        38,210
						   -----------	  ----------
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES     (767,374)      (45,948)

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment                 (7,302,797)     (364,169)
						   -----------	  ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (decrease) in loans payable                    15,177      (65,865)
(Decrease) in related party notes payable             (24,216)      (23,196)
Increase in line of credit                           7,445,000             -
Sale of common stock                                         -     1,124,531
						   -----------	  ----------
NET CASH PROVIDED BY FINANCING ACTIVITIES            7,435,961     1,035,470
						   -----------	  ----------
Net Increase (Decrease) in Cash                      (634,210)       625,353

BALANCE, BEGINNING                                   1,273,150     1,874,861
						   -----------	  ----------
BALANCE, ENDING                                       $638,940    $2,500,214
						   -----------	  ----------

INTEREST PAID                                               $-            $-
						   -----------	  ----------
TAXES PAID                                              $3,584            $-
						   -----------	  ----------
Summary of Non Cash Items:
Stock issued to pay royalty payments	 	   $    74,159
Purchase of leases for note and stock from seller  $30,025,316
Contribution of Vehicle from related party	   $     2,151
Capitalized debt issuance costs	 		   $ 5,384,223

</TABLE>



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







                                      F-5
<PAGE>
                            SOUTH TEXAS OIL COMPANY

                         NOTES TO FINANCIAL STATEMENTS

NOTE 1 - History and Organization and Significant Accounting Policies


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.

Principles of Consolidation:

The attached consolidated  financial  statements  include  the  accounts of the
Company  and  its  wholly  owned  subsidiaries.   All significant inter-company
transactions have been eliminated in consolidation.


NOTE 2 - OIL PROPERTIES

 Oil properties are made up of the following:

                              06/30/07       12/31/06
 Proved reserves            $13,064,627     $2,892,358
 Unproved reserves           26,719,588      1,238,950
 Drilling rigs                1,616,095              -
 Office equipment                58,755         31,433
 Vehicles                       130,797         22,753
  Accumulated depreciation   (1,426,349)    (1,022,732)
                             ---------      ---------
                            $40,163,512     $3,162,762

NOTE 3 - LINES 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 interest rate at June 30, 2007  is
10.25%.  The  line  must be renewed each year.  The balance at June 30, 2007 is
$0.

On January 31, 2007,  the  Company  received  a  3  year,  $15  million secured
revolving  credit  facility.   The  lender   received  a   warrant to  purchase
1,000,000 shares at $10.00 per share  for  a  period of five (5) years of South
Texas  Oil  Company common stock as part of the funding  commitment.   Interest
accrues at prime  plus 4%, payable quarterly, in arrears.  The interest rate at
June 30, 2007 is 12.25%.   The balance at June 30, 2007 is $7,445,000.  Accrued
interest at June 30, 2007 was $175,127.









                                      F-5
<PAGE>

Note 4 - Notes Payable

The Company had loans outstanding of $182,434 as of June 30, 2007 as follows:


INTEREST RATE   	LOANS PAYABLE   			JUNE 30, 2007

 4.90%     SECURED AUTOMOBILE NOTE PAYABLE, PRINCIPAL IS $34,671,
	   REQUIRED MONTHLY PAYMENT OF $799 FOR 48 MONTHS,  	   $  33,425
           MATURES APRIL 28, 2011.

4.90%      SECURED AUTOMOBILE NOTE PAYABLE, PRINCIPAL IS $30,090,
	   REQUIRED MONTHLY PAYMENT OF $693 FOR 48 MONTHS,            29,009
           MATURES APRIL 28, 2011.

UNSTATED   NOTE PAYABLE, PRINCIPAL OF $180,000 WITH NO STATED
	   INTEREST RATE, REQUIRED MONTHLY PAYMENT OF $5,000 FOR     120,000
           18 MONTHS, $22,500 FOR 4 MONTHS.  (REFER TO
           ADDITIONAL DISCLOSURE IN NOTE 6 - ACQUISITION OF ASSETS)
								  ----------
           TOTAL NOTES PAYABLE                                       182,434
           LESS:  CURRENT PORTION OF LONG-TERM DEBT                  (15,177)
								  ----------
           NET LONG-TERM DEBT                                     $  167,257


Under the terms of the notes described above, the Company is obligated to pay
at least the following principal amounts in the years specified below:


	YEAR  	    AMOUNT
	----	   -------
	2007         7,496
	2008       135,553
	2009        16,332
	2010        17,151
	2011         5,902
		   -------
	TOTAL   $  242,434


NOTE 5 - RELATED PARTY TRANSACTIONS

The Company has an outstanding  note  payable to Murray Conradie, the Company's
CEO, related to the purchase of wells during  the  2nd  quarter of 2005, with a
balance as of June 30, 2007 of $24,530.  This note will be  paid  monthly for a
period  of  thirty  six  (36)  months (from April 2005) 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 Company has an outstanding note  payable  to  Jason Griffith, the Company's
former CFO, related to the purchase of wells during  the  2nd  quarter of 2005,
with a balance as of June 30, 2007 of $17,454.  This note will be  paid monthly
for a period of thirty six (36) months (from April 2005) 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.

                                      F-6
<PAGE>

Note 6 - Acquisition of Assets

On April 20, 2007, South Texas Oil Company entered into  an  Agreement and Plan
of  Merger  whereby  Leexus  Properties  Corp was merged into Leexus  Operating
Company,  a  newly  formed  subsidiary  of  South   Texas   Oil   Company.   As
consideration  for  the  merger,  the  Company  is issuing 2,000,000 shares  of
restricted common stock (valued as $18,980,000 or $9.49 per share) and provided
$3 million in cash and issued a note for $4 million to the selling shareholders
of Leexus Properties Corp.  (Refer to Note 7 - Stockholders' Equity).  Prior to
the closing of the transaction, the seller spent  additional  funds on drilling
and improving the assets being purchased.  The $4 million note was increased to
$4,485,241 based on the additional improvements made.  The same  terms apply to
this  note  whereas  the  note is paid from production.  This is a non-interest
bearing note.  Given this is  a  non-interest bearing note and the payments are
made based on the lesser of 75% of  the current months net production or 75% of
the net production from the average December  2006,  January 2007, and February
2007 production, the company recorded the discounted present  valued assuming a
4.90% borrowing rate (based on current loans).  This reduced the  face value of
the note to $3,378,059.

The  purchase  price  of $25,980,000 was allocated between proved and  unproved
reserves.  $18,967,244  was  allocated to unproven reserves, whereas $7,012,756
was allocated to proven reserves.  The allocation was based on an estimate of a
48 month payback, based on prior  production.  The company is in the process of
obtaining engineering reports for these properties.

On June 18, 2007, the Company entered  into an agreement to acquire certain oil
and gas interests and certain related assets  of  Senora  Resources,  Inc.  and
James  D.  Dobos,  II  (collectively  the  "Seller").  As consideration for the
acquisition, the Company provided $1.8 million in cash.

The entire purchase price of $1,800,000 was  allocated to proven reserves.  The
company  is  in  the  process  of  obtaining  engineering   reports  for  these
properties.

On April 4, 2007, the Company entered into an equipment purchase agreement with
TeXana Drilling, LLC (TeXana) and CD Kirchner, an individual and sole member of
TeXana Drilling, LLC to purchase an oil well drilling rig and related equipment
for a total purchase price of $1,065,418.48.  The purchase price  is to be paid
as follows in accordance with the agreement:

   a.  The Company shall pay Six Hundred and Ten Thousand dollars ($610,418.48)
        to Republic Bank of Norman Ok to settle the outstanding loan.
   b.  The  Company  shall  pay  Two Hundred and Seventy Five Thousand  dollars
        ($275,000) at closing; and
   c.  The balance of One Hundred  and  Eighty Thousand dollars ($180,000) will
        be paid as follows:
         i.   Five Thousand dollars ($5,000)  per  month  commencing sixty days
              after closing for a period of Eighteen (18) months; and
         ii.  Twenty Two Thousand Five Hundred dollars ($22,500)  per month for
              four (4) months commencing month Nineteen (19) after closing.

The  Company  has  deferred  making  the  monthly  payments because significant
amounts  of unanticipated repair work has been undertaken  on  the  drill  rig.
Furthermore,  the  Company  anticipates  that  the  note will be reduced in the
future by the amounts incurred for parts and repairs during the 90 day warranty
period  specified  in  the purchase agreement.  The total  amount  of  expenses
incurred during the three months ended June 30, 2007 was approximately $62,700.





                                      F-7
<PAGE>

NOTE 7 - STOCKHOLDERS' EQUITY

In January 2007, the Company  issued 13,098 shares valued at $74,159 to royalty
owners of a certain lease in order  to  obtain  the  assignment  of all rights,
title and interest in the production payment in leases.

In  January 2007, the Company issued 50,000 shares for options exercised  on  a
cashless basis at $0.46 per share.

In January  2007,  the  Company  issued  6,000 shares of common stock valued at
$57,000  in  connection  with a 12 month services  agreement  entered  into  on
January 15, 2007.  The Company  expensed  $26,125 for services rendered through
June 30, 2007  and recorded deferred compensation  for  $30,875  as of June 30,
2007.

In connection with the $15 million secured revolving credit facility  obtained,
the  Company  granted  warrants  to  purchase 1,000,000 shares of the Company's
common stock at an exercise price of $10  per  share  for  a period of five (5)
years.  The Company capitalized this as debt issuance costs in  the  amount  of
$5,700,945,  the  fair value of the warrants on the date of grant.  Since these
warrants were issued  in  connection  with  the  line  of  credit,  the Company
allocated  the  fair  value  between the line of credit and the warrants.   The
difference  between the fair value  and  the  allocated  fair  value  is  being
amortized over the term of the line of credit.  Fair value was determined using
the Black Scholes  option  pricing  model  based  on the following assumptions:
expected dividends $-0-; volatility: 180%; risk free interest rate: 5.00%.  The
debt issuance costs will be amortized on a straight line basis over the life of
the credit facility; three (3) years.  For the three  months  ended  March  31,
2007, the Company expensed $316,719 of debt issuance costs.  The remaining debt
issuance  costs of $5,384,224 will be amortized over the next thirty three (33)
months at $158,360 per month.

In connection  with the agreement and plan of merger entered into between South
Texas Oil Company and Leexus Properties Corp,  the   Company  issued  2,000,000
shares of restricted common stock valued as $18,980,000 or $9.49 per share, the
fair  market value of the stock on the date of acquisition.

In June 2007, a related party contributed a vehicle with the  fair market value
of $2,151.  Due to the related party nature of the transaction, the contributed
capital was recorded to additional paid in capital.

On November 2, 2006, the  company signed a Letter of Intent for the purchase of
up  to  75%  working  interest   (WI)   and   60%  Royalty  Interest  (RI),  in
approximately 20,000 acres in the DJ basin  in  Northeast Colorado at a cost of
$15  million  if the full 75% working interest is  acquired.   Concurrent  with
signing  this  letter  of  intent,  the  Company  issued  2,419,355  shares  of
restricted common  stock  for consideration of $7,500,000 based upon a five day
closing average of the South  Texas  Oil Company shares as agreed upon when the
original  Letter of Intent was signed.  The transaction was closed  during  2nd
quarter.




                                      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  elated  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 Company has recently purchased a drilling rig and a workover
rig to cost effectively drill and workover its oil and gas wells.

    South  Texas Oil derives its  revenues  from  its  producing  oil  and  gas
properties.  These properties consist of working interests in producing oil and
gas 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 leases.

Short Term Goals

    1. To use newly acquired workover rig to work over and maintain production
of existing wells in Kyote and Frio County.
    2. To drill and complete an additional 3 wells in south central Texas by
the end of September 2007.



                                       3
<PAGE>(cont)

Long Term Goals

    1. To drill and complete 3-5 additional wells in south central Texas by
       year end.  Funding for the drilling of these additional wells will be
       provided from operations, working interest partners and the credit line
       received.
    2. To finalize the evaluation of the proposed Colorado acquisition and
       drill 3 additional wells on successful evaluation of the project.

      Concerning   working   capital,  historically  our  revenues  have   been
insufficient to cover operations.  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.  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
oil wells. We entered into a funding  agreement  recently  which provides South
Texas  Oil  Company  a  $15  million credit facility. This should  provide  the
necessary capital for our needs over the next twelve months.

Results of Operations

      For the three months ended June 30, 2007 compared to the three months
ended June 30, 2006.

     Oil sales.  For the three  months  ended  June 30, 2007, oil revenues were
$796,412 compared to $164,459 for the same period  during  2006, an increase of
$631,953.  The increase was the result of oil production resulting  from Leexus
Operating Company, a newly formed subsidiary of South Texas Oil Company.

      Drilling  revenue  and costs.  For the three months ended June 30,  2007,
drilling revenues were $522,501 compared to $0 for the same period during 2006,
an increase of $522,501.   The  increase was the result of drilling revenue not
previously part of the Company's  revenue base.  The drilling costs of $474,344
for the period were also compared to $0 for the same period during 2006.

      Depreciation, depletion and amortization.   Our  depreciation,  depletion
and  amortization  expenses  were $340,166 for the three months ended June  30,
2007 compared to $33,822 for the  same period in 2006, an increase of $306,344.
The increased depreciation, depletion and amortization expenses were the result
of the purchase of equipment and leasehold  improvements  and additional proven
reserves for the period ended June 30, 2007.

      General and administrative expenses. General and administrative  expenses
were $250,576 for the three months ended June 30, 2007 compared to $113,149 for
the  same  period in 2006, an increase of $137,427. This increase was primarily
related to the  increase in overhead as a result of funding expenses, increased
payroll costs, insurances, travel and lease administration costs for the period
ended June 30, 2007.

      Interest expense  .   Interest  expense was $640,205 for the three months
ended June 30, 2007 compared to $111,547  for  the  same  period  in  2006,  an
increase  of  $528,658.  The increase was primarily due to amortization of debt
issuance costs of $475,079 and interest expense of $164,472 associated with the
funding of the $15 million secured revolving credit facility.

      Net income  (loss).  Net loss increased by $696,979 to $(796,772) for the
three months ended  June  30,  2007 from $(99,793) for the same period in 2006.
The primary reasons for this increase  include  an  increase  in interest costs
associated  with  the  revolving  credit  facility of $528,658, an increase  in
administration costs of $137,427, an increase  in  depreciation,  depletion and
amortization  of  $306,344 and an increase in production costs of $383,008  and
drilling rig costs of $474,344.

                                       4
<PAGE>

For the six months  ended  June  30, 2007 compared to the six months ended June
30, 2006.

Oil sales.  For the six months ended  June 30, 2007, oil revenues were $891,895
compared to $272,709 for the same period  during 2006, an increase of $619,186.
The increase was the result of oil production  resulting  from Leexus Operating
Company, a newly formed subsidiary of South Texas Oil Company.

Drilling revenue and costs.  For the six months ended June  30,  2007, drilling
revenues  were  $522,501  compared  to  $0 for the same period during 2006,  an
increase of $522,501.  The increase was the  result  of  drilling  revenue  not
previously  part of the Company's revenue base.  The drilling costs of $474,344
for the period were also compared to $0 for the same period during 2006.

Depreciation,  depletion  and  amortization.   Our  depreciation, depletion and
amortization  expenses were $403,672 for the six months  ended  June  30,  2007
compared to $65,245  for  the same period in 2006, an increase of $338,427. The
increased depreciation, depletion  and amortization expenses were the result of
the purchase of additional equipment  and  leasehold  improvements  and  proven
reserves during the period ended June 30, 2007.

General and administrative expenses.  General and administrative expenses  were
$466,315  for  the  six months ended June 30, 2007 compared to $176,558 for the
same period in 2006,  an  increase  of  $289,757.  This  increase was primarily
related  to  the increase in overhead as a result of increased  payroll  costs,
insurances, travel and lease administration costs.

Interest expense.   Interest expense was $967,580 for the six months ended June
30, 2007 compared to  $159,303  for  the  same  period  in 2006, an increase of
$808,277. The increase was primarily due to amortization of debt issuance costs
and  interest  expense associated with the funding of the $15  million  secured
revolving credit facility.

Net income (loss).   Net loss increased by $(1,137,476) to $(1,332,387) for the
six months ended June 30, 2007 from $(194,913) for the same period in 2006. The
primary reasons for this increase include an increase in administrative fees of
$289,757, an increase  in  production  costs  for  the  period  of $375,654 and
drilling  rig  costs  of  $474,344, an increase in depreciation, depletion  and
amortization of $338,427 and an increase in interest expense of $808,277.

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.

For the six month period ended June 30,  2007 South Texas Oil Company increased
its working capital from a positive $1,254,289  as  at  December  31, 2006 to a
positive $1,274,118 as of June 30, 2007.  This increase in working  capital was
a  result  of  an increase in accounts receivable of $1,876,638 a corresponding
increase in accounts  payable  of $1,235,629, as well as an increase in related
party current portion of long term  debt  of  $173,515 and an increase in short
term loans of $15,177, coupled with an increase  in prepaid expenses of $29,063
and a corresponding decrease in cash of $634,210.




                                       5
<PAGE>

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.

On  June  30,  2007,  South Texas Oil Company had total assets  of  $47,667,277
compared to $4,485,891  on  December 31, 2006, an increase of $43,181,386.  The
reason for the increase in assets  is  a result of the increase in property and
equipment  of  $37,000,751, an increase in  prepaid  expenses  of  $29,063,  an
increase  in debt  issuance  costs  of  $4,909,146,  an  increase  in  accounts
receivable  of  $1,876,638  and  decrease  in cash of $634,210. South Texas Oil
Company  had  a total stockholders' equity of  $34,892,591  on  June  30,  2007
compared  to $3,941,598  on  December  31,  2006,  an  increase  in  equity  of
$30,950,993  primarily  related to the loss for the period ended June 30, 2007,
the recording of a warrant  for  1,000,000 shares of the Company's common stock
at an exercise price of $10 per share for a period of five (5) years, valued at
$5,700,945, a portion of the Leexus  Properties  purchase  paid  with 2,000,000
shares of the Company's common stock valued at $18,978,000 or $ 9.49  per share
and  the  issuance  of  stock  associated  with the purchase of Colorado Leases
valued at $7,500,000.

Significant Subsequent Events occurring after June 30, 2007:

   During August 2007, the company purchased additional working interest in the
Texas properties for approximately $253,145.

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

                                       6
<PAGE>(cont)

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 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) have
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  this evaluation, both 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

                                       7
<PAGE>(cont)

financial  statements  for  external purposes  in  accordance  with  accounting
principles generally accepted in the United States of America.

   (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.

                            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, 2007, 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 20, 2007, South Texas Oil Company entered into an Agreement and
Plan of Merger  whereby Leexus Properties Corp was merged into Leexus Operating
Company,  a  newly   formed   subsidiary   of  South  Texas  Oil  Company.   As
consideration  for  the  merger, the Company is  issuing  2,000,000  shares  of
restricted common stock (valued as $18,980,000 or $9.49 per share) and provided
$3 million in cash and issued a note for $4 million to the selling shareholders
of Leexus Properties Corp.  (Refer to Note 7 - Stockholders' Equity).  Prior to
the closing of the transaction,  the  seller spent additional funds on drilling
and improving the assets being purchased.  The $4 million note was increased to
$4,485,241 based on the additional improvements  made.  The same terms apply to
this note whereas the note is paid from production.   This  is  a  non-interest
bearing  note.  Given this is a non-interest bearing note and the payments  are
made based  on the lesser of 75% of the current months net production or 75% of
the net production  from  the average December 2006, January 2007, and February
2007 production, the company  recorded the discounted present valued assuming a
4.90% borrowing rate (based on  current loans).  This reduced the face value of
the note to $3,378,059.

      This transactions was 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;
     -  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.

                                       8
<PAGE>

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.

South Texas Oil Company's  report on Form 8-K/A dated April 24, 2007 items 2.01
and 9.01

       On April 20, 2007, South Texas Oil Company entered into an Agreement and
Plan of Merger whereby Leexus  Properties Corp was merged into Leexus Operating
Company,  a  newly  formed  subsidiary   of   South   Texas  Oil  Company.   As
consideration  for  the  merger,  the  Company is issuing 2,000,000  shares  of
restricted common stock (valued as $18,980,000 or $9.49 per share) and provided
$3 million in cash and issued a note for $4 million to the selling shareholders
of Leexus Properties Corp.  (Refer to Note 7 - Stockholders' Equity).  Prior to
the closing of the transaction, the seller  spent  additional funds on drilling
and improving the assets being purchased.  The $4 million note was increased to
$4,485,241 based on the additional improvements made.   The same terms apply to
this  note whereas the note is paid from production.  This  is  a  non-interest
bearing  note.   Given this is a non-interest bearing note and the payments are
made based on the  lesser of 75% of the current months net production or 75% of
the net production from  the  average December 2006, January 2007, and February
2007 production, the company recorded  the discounted present valued assuming a
4.90% borrowing rate (based on current loans).   This reduced the face value of
the note to $3,378,059.

South Texas Oil Company's report on Form 8-K dated May 3, 2007 items 4.02.

      On May 2, 2007, South Texas Oil Company filed a Current Report on Form 8-
K, stating that as of April 17, 2007, authorized officers of the Company, after
further  research  and discussion with its independent  accountants,  concluded
that the Company's Annual  Report  on  Form 10-KSB for the years ended December
31,  2005  and  2004  should no longer be relied  upon  because  the  financial
statements need to be restated  with respect to the accounting treatment of the
following items:





                                       9
<PAGE>

  1. For 2004, the only adjustment was an increase in property and equipment of
$480,492, with a corresponding increase  in  liabilities  of $480,492 to record
the asset retirement obligation (ARO) for the current wells.

  2. In 2005, the Company recorded an expense of $27,354 for the 2005 accretion
of  the  ARO,  along  with  a decrease in the ARO of $29,095 related  to  wells
plugged during the year.

  3. In 2005, the Company expensed  $43,206  of previously capitalized workover
costs.

   4.  In  2005,  the Company had previously been  depreciating  its  leasehold
improvements using the straight line method and has since corrected this to the
depletion method. The total depletion adjustment was $67,647.

The 2004 adjustments did not affect the income statement, nor did it affect the
per share earnings amounts.

The  2005 adjustments  increased  the  loss  by  $109,110,  from  $911,458,  to
$1,020,568.   The  basic loss per share increased from $0.20 to a loss of $0.22
per share.

Such financial statements have since been amended and may be relied upon.

South Texas Oil Company's report on Form 8-K dated June 20, 2007 items 5.02 and
9.01.

      On June 20, 2007,  South Texas Oil Company filed a Current Report on Form
8-K, stating that on June  18, 2007, South Texas Oil named Scott Zimmerman, the
former President, CEO, and Founder  of  Storm  Cat Energy, as President.  Scott
Zimmerman holds a Bachelor of Science in Petroleum Engineering.

Mr. Zimmerman's professional experience includes an extensive background in the
oil and gas industry including working at Huber  Corporation for 20 years where
he was instrumental in the sale of Huber's Fruitland  Coal CBM field for $100 +
MM in profit. In 2002 he was Vice-President of Operations  and  Engineering for
Evergreen Resources and responsible for over 1,000+ producing wells and 800,000
prospective  acres.   Evergreen  was  acquired  by  Pioneer Resources for  $2.1
billion in 2004.

Additionally, On June 18, 2007, South Texas Oil named  Bill Zeltwanger as Vice-
President. Mr. Zeltwanger has been extensively involved  in  the industry since
1973.   He started his career in the oil and gas industry in south  Texas.  For
the past  6  years  he  has been a partner in Leexus Oil and Gas which recently
sold its assets to South  Texas  Oil  Company for approximately $26 million. He
has extensive knowledge of the field the Company is currently drilling in.

South Texas Oil Company's report on Form  8-K  dated  July 19, 2007 items 2.01,
8.01 and 9.01.

      On July 19, 2007, South Texas Oil Company filed a  Current Report on Form
8-K, relating to a press release issued on July 12 reporting  that  South Texas
Oil  Company  had  acquired additional oil and gas interests.  South Texas  Oil
Company provided $1.8  million in cash as consideration for the purchase of the
additional mineral interests.


                                      10
<PAGE>

South Texas Oil Company's report on Form 8-K dated July 31, 2007 items 7.01 and
9.01.

      On July 31, 2007,  South Texas Oil Company filed a Current Report on Form
8-K, providing a Corporate  update  to  the  shareholders  of  the Company. The
purpose  of  the  Regulation  FD Disclosure was to provide the shareholders  of
South Texas Oil Company a comprehensive  overview  of  operations  to  date and
provide  disclosure on items the Company intends to discuss with the investment
community.























                                      11

<PAGE>

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,
hereunto duly authorized.

                                   South Texas Oil Company

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

                                   /s/ Marlene Hutcheson, CPA
                                   ----------------------
                                   Marlene Hutcheson,
                                   Chief Financial Officer
                                   (Principal Financial Officer)


                                   Date: August 20, 2007


      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.

                                   South Texas Oil Company

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

                                   /s/ Marlene Hutcheson, CPA
                                   ----------------------
                                   Marlene Hutcheson, CPA
                                   Chief Financial Officer
                                   (Principal Financial Officer)


                                   Date: August 20, 2007












                                      12