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 September 30, 2006

[ ] 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.)

            2881 CR 2880, Big Foot, TX                         78005
       ----------------------------------                    ---------
    (Address of principal executive offices)                 (Zip Code)

           P.O. Box 340504, Austin, TX                         78734
       ----------------------------------                    ---------
               (Mailing Address)                             (Zip Code)

                    210-568-9760 (Telephone)  210-568-9761 (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 10,825,968 outstanding, par value $.001 per share as of
November 13, 2006.

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

Item 2.  Management's Discussion and Analysis of Plan
           of Operation.............................................     3

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


PART II. OTHER INFORMATION

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

Item 2.   Unregistered Sales of Equity 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..........................................    8

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

Signatures...........................................................   10















                                       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,
2005.

      In the opinion of management, all adjustments  necessary in order to make
the financial position, results of operations and changes in financial position
at September 30, 2006, and for all periods presented not  misleading  have been
made.   The  results of operations for the period ended September 30, 2006  are
not necessarily  an indication of operating results to be expected for the full
year ending December 31, 2006.


















                                      F-1
<PAGE>

                            SOUTH TEXAS OIL COMPANY
                                BALANCE SHEETS
<TABLE>
<CAPTION>

<S>                                                <C>           <C>
						  Unaudited    Audited
						  As of		As of
                                                   9/30/06     12/31/05
CURRENT ASSETS:
Cash                                            $2,294,594   $1,874,862
Accounts receivable                                 60,797       26,670
Prepaid Expenses                                     9,624        3,150
                                                  --------    ---------
TOTAL CURRENT ASSETS                             2,365,015    1,904,682

Property and Equipment, net of
    accumulated depreciation                     2,309,022    1,832,164

Deposits                                             1,500        1,350
                                                ----------    ---------
TOTAL ASSETS                                    $4,675,537   $3,738,196
                                                ==========    =========

CURRENT LIABILITIES:
Accounts payable                                $   44,377   $   13,026
Accrued Interest                                         -       96,268
Accrued payroll liabilities                          8,542       56,052
Other short term loans                               3,350       70,000
Related party current portion of long-term debt     24,574       35,866
                                               ----------    ---------
TOTAL CURRENT LIABILITIES                           80,843      271,212

Long Term Loans                               $        -     $2,300,000
Related Party Long-Term Debt,
   net of current portion                           49,148       71,732
                                               ----------    ---------

TOTAL LIABILITIES                                  129,991    2,642,944

STOCKHOLDERS' EQUITY:
Common stock, $0.001 par value, 50,000,000
shares authorized; 4,893,677 issued and
outstanding at March 31, 2006
and December 31, 2005, respectively                 10,826        4,902
Additional paid-in capital                       6,051,403    2,400,273
Accumulated  Deficit                            (1,516,683)  (1,309,923)
                                                ----------    ---------
TOTAL STOCKHOLDERS' EQUITY                       4,545,547    1,095,252

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY      $4,675,537   $3,738,196
                                                ==========    =========
</TABLE>

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

                                      F-2
<PAGE>


                            SOUTH TEXAS OIL COMPANY
                           STATEMENTS OF OPERATIONS
				  UNAUDITED
<TABLE>
<CAPTION>

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


                                     3 months ended      9 months ended
                                    9/30/06    9/30/05    9/30/06   9/30/05


Oil and gas sales                  $173,544   $ 57,325   $446,253  $177,711
Interest income                      25,433      2,840     52,122     2,840
Forgiveness of debt                       -          -     12,222         -
                                   --------   --------    -------   -------
  Total revenues                    198,977     60,165    510,597   180,551

General and administrative          122,860    128,155    299,419   229,643
Production costs                     25,296     21,496     86,415    89,380
Depreciation, depletion
          and amortization           36,125     29,170    101,370    83,926
Interest expense                          -    267,083    159,303   296,339
Plugging of wells                    15,821          -     56,676    14,775
Production taxes                     10,721      4,786     14,174     8,632
                                  --------  ---------   --------  --------
   Total expenses                   210,824    450,690    717,357   722,695

Income before provision
   for income taxes                 (11,847)  (390,525)  (206,760) (542,144)
Provision for income taxes                -          -          -         -
                                   --------  --------   --------   --------
NET LOSS                          $ (11,847)  (390,525)  (206,760) (542,144)
                                   ========  =========   ========  =========

Basic weighted average number
of common shares outstanding      10,818,266  4,793,677  7,855,972 3,927,576

Diluted weighted average number
of common shares outstanding      10,818,266       -     7,855,972       -
                                   ========   =========  ========  =========
Basic Net Loss Per Share             (0.001)    (0.081)    (0.026)   (0.138)

Diluted Net Loss Per Share           (0.001)    (0.081)    (0.026)   (0.138)

</TABLE>


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





                                      F-3
<PAGE>

                            SOUTH TEXAS OIL COMPANY
                            STATEMENT OF CASH FLOWS
				   UNAUDITED

<TABLE>
<CAPTION>
<S>                                                   <C>            <C>
                                                 9 months ended  9 months ended
                                                      9/30/06         9/30/05
Cash Flows from Operating Activities:
Net loss                                            $(206,760)      $(542,144)

Stock issued (cancelled) for services/purchases        (3,055)         20,055
Stock issued for settlement of debt and interest      100,620               -
Non cash financing costs related to funding                 -         255,273

Adjustments to reconcile net loss to net
cash provided (used) by operating activities:
Depreciation and amortization                         101,370         83,926
(Increase) decrease in accounts receivable            (34,127)        (1,083)
(Increase) decrease in deposits                        (2,550)             -
Increase in prepaid expenses                           (4,074)       (17,650)
Increase in related party accrued interest             (9,000)         4,666
Increase in Accrued Interest                           47,690          8,667
Increase (decrease) in related party payable                -       (212,545)
Increase (decrease) in payroll liabilities            (47,510)        14,501
Increase (decrease) in accounts payable                31,351        (44,555)
                                                    ---------      ---------
Net cash provided (used) by operating activities      (26,045)      (430,889)

Cash Flows from Investing Activities:
Purchase of property and equipment                   (578,229)       (33,055)
                                                    ---------      ---------
Cash Flows from Financing Activities:
Increase (decrease) in loans payable                  (66,650)     1,263,563
Increase in related party notes payable               (33,875)        50,036
Increase in subscribed stock                                -         61,984
Increase in line of credit                                  -         (1,387)
Issuance of stock                                           -           (484)
Sale of common stock                                1,124,531         40,000
                                                    ---------      ---------
Net cash provided by financing activities           1,024,006      1,413,712
                                                   ---------      ---------
Net Increase in Cash                               $  419,732     $  949,768
                                                    ---------      ---------
Balance, Beginning                                  1,874,862          9,944

Balance, Ending                                    $2,294,594      $ 959,712
                                                    ---------      ---------
Interest Paid                                       $      -      $       -
                                                   ---------      ---------
Taxes Paid                                          $      -      $       -
                                                   ---------      ---------
</TABLE>

              The accompanying notes to financial statements are
                an integral part of these financial statements.
                                      F-4
<PAGE>
                            SOUTH TEXAS OIL COMPANY

                         NOTES TO FINANCIAL STATEMENTS

NOTE 1 - HISTORY AND ORGANIZATION OF THE COMPANY

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

NOTE 2 - OIL PROPERTIES

 Oil properties are made up of the following:

                              9/30/06        12/31/05
 Leasehold Improvements     $1,253,314      $ 719,743
 Equipment and machinery     1,701,411      1,537,591
 Vehicles                       22,753              -
  Accumulated depreciation    (668,456)      (567,086)
                             ---------      ---------
                            $2,309,022     $1,832,164

NOTE 3 - LINE OF CREDIT

The Company has a line of credit agreement with a  financial  institution which
provides maximum borrowing of $75,000. Interest on outstanding balances accrues
at prime plus 2% and is payable monthly. The current interest rate at September
30,  2006  is  8.25%.  The  line  must  be  renewed each year.  The balance  at
September 30, 2006 is $0.

NOTE 4 - RELATED PARTY TRANSACTIONS

The  Company  has  an  outstanding note payable to  a  shareholder  and  former
officer, in the amount of  $24,574  related to the purchase of wells during the
2005.  This note is paid only from production of the related wells.

The Company has an outstanding note payable  to  Murray Conradie, the Company's
CEO, related to the purchase of wells during the 2005 in the amount of $49,148.
This note is paid only from production of the related wells.

NOTE 5 - STOCKHOLDERS' EQUITY

During the nine months ended September 30, 2006, the  Company  issued 1,959,113
shares upon the exercise of warrants by warrant holders.  The company  received
$1,124,531 in cash for these shares.

The  company  issued  4,299,191  shares  in  exchange  for  the  settlement  of
$2,535,578  of  debt  and accrued interest related to convertible debt that had
been issued.

The company's total issued and outstanding shares was reduced by 333,715 shares
related to shares canceled  that  were  to  be  issued to a former employee and
related to the settlement of debt from the first quarter of 2005.

There were no shares issued during the 3 months ended September 30, 2006.

                                     F-5
<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  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  plans  its  future  growth  through  a  balance  of
acquisition  of  working  interests  in  existing  wells  and leases, increased
production on current leases and new drilling on current leases  in  accordance
with  new  State  of  Texas  guidelines of one (1) well per ten (10) acres,  as
opposed to the previous ratio  of  one  (1)  well  per  twenty (20) acres. This
latter strategy of in-fill drilling affords the most potential  for South Texas
Oil Company. The new guidelines will allow South Texas Oil Company to place new
wells  between  existing  wells that have previously produced or are  currently
producing oil.

Short Term Goals

    1. To commence drilling of 2 in-field oil wells in the fourth quarter.
(This was originally scheduled for the third quarter, but availability of
drilling rigs pushed this to fourth quarter.)

Long Term Goals

    1. To drill and complete an additional 3-4 in-field wells in the 6 months
       following the drilling of the initial well should this in-field well
       produce a minimum of 5 barrels of oil per day.  Funding for the drilling
       of these additional wells will be provided from the funding received.

                                       3
<PAGE>

     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.   However,  with  revenue growing
steadily, we believe that over the next twelve months there will  be sufficient
working   capital  generated  from  sales  to  cover  operational  needs.  This
evaluation  is  based  on  the  increased  price  of  oil,  the additional well
workovers planned for the year, as well as the drilling of new wells.

Results of Operations

      For the three months ended September 30, 2006 compared to the three
months ended September 30, 2005.

      Oil sales.  For the three months ended September 30, 2006,  oil  revenues
were  $173,544 compared to $57,325 for the same period during 2005, an increase
of $116,218.   The  increase  was  the  result of increased oil production as a
result of workovers and increased oil prices.

      Depreciation, depletion and amortization.   Our  depreciation,  depletion
and amortization expenses were $36,125 for the three months ended September 30,
2006  compared  to  $29,170 for the same period in 2005, an increase of $6,956.
The increased depreciation, depletion and amortization expenses were the result
of the purchase of equipment  and  leasehold  improvements for the period ended
September 30, 2006.

      General and administrative expenses. General  and administrative expenses
were  $122,860  for  the  three  months ended September 30,  2006  compared  to
$128,155 for the same period in 2005,  a  decrease of $5,295. This decrease was
primarily related to the decrease in overhead  as a result of funding expenses,
decreased  insurances, travel and lease administration  costs  for  the  period
ended September 30, 2006.

      Interest  expense  (net of interest income).  Interest expense was $0 for
the three months ended September  30,  2006  compared  to $267,083 for the same
period in 2005, a decrease of $267,083.  The decrease was due to the conversion
of debt to common stock in the company associated with the recent funding.

      Net income (loss).  Net loss decreased by $378,678  to  $(11,847) for the
three  months ended September 30, 2006 from $(390,525) for the same  period  in
2005.  The   primary   reasons   for   this  decrease  include  a  decrease  in
administration costs of $5,295, an increase  in  production costs of $3,800, an
increase  in  depreciation,  depletion  and amortization  costs  of  $6,956,  a
decrease in interest costs of ($267,083) associated with our recent funding, an
increase in plugging costs of $15,821 and  an  increase  in production taxes of
$5,935.

For the nine months ended September 30, 2006 compared to the  nine months ended
September 30, 2005.

Oil  sales.   For  the nine months ended September 30, 2006, oil revenues  were
$446,253 compared to  $177,711  for the same period during 2005, an increase of
$268,541.  The increase was the result  of increased oil production as a result
of workovers and increased oil prices.



                                       4
<PAGE>

Depreciation,  depletion and amortization.   Our  depreciation,  depletion  and
amortization expenses  were  $101,370  for  the nine months ended September 30,
2006 compared to $83,926 for the same period  in  2005, an increase of $17,444.
The increased depreciation, depletion and amortization expenses were the result
of the purchase of additional equipment and leasehold  improvements  during the
period ended September 30, 2006.

General and administrative expenses.  General and administrative expenses  were
$299,419  for the nine months ended September 30, 2006 compared to $229,643 for
the same period  in  2005,  an increase of $69,776. 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 (net of interest income).  Interest  expense  was $159,303 for
the  nine  months  ended September 30, 2006 compared to $296,339 for  the  same
period in 2005, a decrease  of  $137,036.  The decrease was due to decreases in
the outstanding debt of South Texas Oil Company  during  the  period related to
our recent funding activities.

Net income (loss).  Net loss decreased by $335,384 to $(206,760)  for  the nine
months  ended  September  30, 2006 from $(542,144) for the same period in 2005.
The primary reasons for this  decrease  include  an  increase in administration
costs  of  $69,776, a decrease in production costs of $2,965,  an  increase  in
depreciation,  depletion  and  amortization  costs  of  $17,444,  a decrease in
interest costs of ($137,036) associated with our recent funding, an increase in
plugging costs of $41,901 and an increase in production taxes of $5,542.

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 nine  month  period  ended  September  30, 2006 South Texas Oil Company
increased its working capital from a positive $1,633,470  as  at  December  31,
2005  to  a positive $2,284,172,606 as at September 30, 2006.  This increase in
working capital  was  a  result  of an increase of cash on hand of $419,732, an
increase in accounts receivable of  $34,127, an increase in prepaid expenses of
$6,474, an increase in accounts payable  of  $31,351,  a  decrease  in  accrued
interest  of  $96,268,  a  decrease  in  payroll  liabilities  of $47,510 and a
decrease in short term loans of $66,650 and a decrease in related party debt of
$11,292.

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.


                                       5
<PAGE>

On  September 30, 2006 South Texas Oil Company had total assets  of  $4,675,537
compared  to  $3,738,196  on  December  31, 2005, an increase of $937,341.  The
reason for the increase in assets is a result  of  the increase in cash on hand
of  $419,732,  an increase in accounts receivable of $34,127,  an  increase  in
prepaid expenses of $6,474, along with a corresponding increase in the Property
and  Equipment values  of  $476,858.  South  Texas  Oil  Company  had  a  total
stockholders' equity of $4,545,547 on September 30, 2006 compared to $1,095,252
on December 31, 2005, an increase in equity of $3,450,294.

Significant Subsequent Events occurring after September 30, 2006:

      On  November  2,  2006, South Texas Oil Company signed a Letter of Intent
for the purchase of at least  50%  and  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.

Disclosures about Market Risks

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

Oil and Gas Prices

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

Environmental and Government Compliance and Costs.

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

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

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

                                       6
<PAGE>(cont)

Rail  Road Commission  of  Texas  under  the  Texas Administrative  Code, Title
16  Economic  Regulation,  Chapter  3  Oil and Gas Division, Rule   section3.78
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) has 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, the CEO 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.



                                       7
<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  September 30, 2006, 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:

      None.

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.
                                       8
<PAGE>

Reports on Form 8-K

(a)   Report on Form 8-K filed November 2, 2006, item 8.01.

      On  November  2,  2006,  South  Texas  Oil  Company issued a news release
reporting that South Texas Oil Company has signed a  Letter  of  Intent for the
purchase  of  at  least 50% and 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.














                                       9

<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 and
                                    Principal Financial Officer)

                                   Date: November 13, 2006

      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 and
                                    Principal Financial Officer)

                                   Date: November 13, 2006


























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