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, 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.)

         769 Highway 95 N, Bastrop, TX                         78602
       ----------------------------------                    ---------
    (Address of principal executive offices)                 (Zip Code)


                    512-772-2474 (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 15,651,919 outstanding,  par  value  $.001  per  share as of
November 13, 2007.

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 Changes in Stockholders' Equity.............	F-4
          Statements of Cash Flows (unaudited)......................    F-5
          Notes to 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 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, 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 September 30,  2007,  and for all periods presented not misleading have been
made.  The results of operations  for  the  period ended September 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
                                BALANCE SHEETS

<TABLE>
<CAPTION>

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

                                                  UNAUDITED    AUDITED
                                                   9/30/07     12/31/06
						-----------  -----------
CURRENT ASSETS:
Cash and cash equivalents                       $   413,621  $ 1,273,150
Accounts receivable                               3,437,571       40,230
Prepaid expenses                                     58,140        8,249
						-----------  -----------
TOTAL CURRENT ASSETS                              3,909,332    1,321,629

Office equipment, net of depreciation                89,543       30,206
Vehicles, net of depreciation                       132,827       22,033
Drilling rigs, net of depreciation                3,044,373            -
Proved reserves, net of depletion                18,057,536    2,024,548
Unproved reserves, net of depletion              33,765,018    1,085,975

OTHER ASSETS:
Debt Issuance Cost                                4,848,623            -
Deposits                                              1,500        1,500
						-----------  -----------
TOTAL OTHER ASSETS                                4,850,123        1,500
						-----------  -----------
TOTAL ASSETS                                    $63,848,752  $ 4,485,891
						===========  ===========

CURRENT LIABILITIES:
Accounts payable & accrued expenses             $ 3,186,824  $	  17,252
Asset retirement obligation                         479,460       28,283
Current portion of long term debt		  1,207,517	       -
Customer advances	                          1,504,262            -
Related party current portion of long-term debt      22,661       21,805
						-----------  -----------
TOTAL CURRENT LIABILITIES                         6,400,724       67,340
						-----------  -----------
Long term loans
Asset retirement obligation, long term              257,162      430,777
Long term notes payable                           4,513,065            -
Line of Credit                                   16,945,000            -
Related party L.T. debt, net of current portion      21,103       46,176
						-----------  -----------
TOTAL LIABILITIES                                28,137,054      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; 15,651,919 shares issued
and outstanding at September 30, 2007                15,652       13,445
Additional paid-in capital                       39,692,669   13,580,620
Subscribed stock                                          -   (7,500,000)
Deferred compensation                               (16,625)           -
Accumulated deficit                              (3,979,998)  (2,152,467)
						-----------  -----------
TOTAL STOCKHOLDERS' EQUITY                       35,711,698    3,941,598
						-----------  -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY      $63,848,752  $ 4,485,891
						===========  ===========
</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
                     For the Three and Nine Months Ended
                          September 30, 2007 and 2006


<TABLE>
<CAPTION>

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

                                             UNAUDITED     UNAUDITED     UNAUDITED     UNAUDITED
                                              3 MONTHS 	    3 MONTHS 	 9 MONTHS 	9 MONTHS
					       ENDED	     ENDED	   ENDED	 ENDED
                                              9/30/07       9/30/06       9/30/07       9/30/06
					     -----------   -----------	 -----------  ------------
REVENUE
Oil and gas sales                            $ 1,575,011   $   173,544   $ 2,466,906  $	   446,253
Drilling rig income                              397,811             -       920,312             -
					     -----------   -----------	 -----------  ------------
     Total revenues                            1,972,822       173,544     3,387,218       446,253

EXPENSES
General and administrative                       314,931       122,861       781,246       299,419
Drilling rig costs                               304,289             -       778,633             -
Production costs                                 693,003        25,296     1,129,776        86,415
Depreciation, depletion, and amortization        347,275        36,125       750,947       101,370
Asset retirement obligation expense                6,912             -        20,400             -
Plugging of wells                                      -        15,821             -        56,676
Production taxes                                  31,277        10,721        36,073        14,174
					     -----------   -----------	 -----------  ------------
     Total expenses                            1,697,687       210,824     3,497,075       558,054
					     -----------   -----------	 -----------  ------------
OTHER INCOME (EXPENSE)
Interest income                                    3,197        25,433        23,381        52,122
Forgiveness of debt                                    -             -             -        12,222
Interest expense                                (773,475)            -    (1,741,055)     (159,303)
					     -----------   -----------	 -----------  ------------
     Total other income (expense)               (770,278)       25,433    (1,717,674)      (94,959)
					     -----------   -----------	 -----------  ------------
Loss before provision for income taxes          (495,143)      (11,847)   (1,827,531)     (206,760)
Provision for income taxes                             -             -             -             -
					     -----------   -----------	 -----------  ------------
NET LOSS                                     $  (495,143)  $   (11,847)  $(1,827,531) $   (206,760)
					     ===========   ===========	 ===========  ============
BASIC WEIGHTED AVERAGE NUMBER
OF COMMON SHARES OUTSTANDING                  15,558,214    10,818,266    14,072,084     7,855,972
					     ===========   ===========	 ===========  ============
DILUTED WEIGHTED AVERAGE NUMBER
OF COMMON SHARES OUTSTANDING                  15,558,214    10,818,266    14,072,084     7,855,972
					     ===========   ===========	 ===========  ============
BASIC NET LOSS PER SHARE                     $	   (0.03)  $	    **   $     (0.13)  $     (0.03)
					     ===========   ===========	 ===========  ============
DILUTED NET LOSS PER SHARE                   $	   (0.03)  $	    **   $     (0.13)  $     (0.03)
					     ===========   ===========	 ===========  ============
</TABLE>

** = less than $0.01 per share


              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 NINE MONTHS ENDED SEPTEMBER 30, 2007
 	  			   UNAUDITED

<TABLE>
<CAPTION>

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

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

Balance at December 31, 2006    13,444,743 	$13,446 	$13,580,620 	$ (7,500,000)  $(2,152,467)     $ 3,941,598

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

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

Issued for services                  6,000      $     6    	$    56,994   	$    (16,625)  $	  -     $    40,375

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

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          -      $     -      	$     2,151     $	   -   $	  -     $     2,151
party

Purchase of Diversity              105,820    	$   105   	$   999,895     $	   -   $	  -  	$ 1,000,000

Purchase of Drilling Rig            32,258     	$    32    	$   299,968     $	   -   $	  -    	$   300,000

Net Profit (Loss) for nine
months
Ended September 30, 2007                 -      $     -         $	  -     $	   -   $(1,827,531)	$(1,827,531)
				----------	-------		-----------	------------   -----------	-----------
Balance at September 30, 2007   15,651,919 	$15,652 	$39,692,669   	$    (16,625)  $(3,979,998)     $35,711,698
				==========	=======		===========	============   ===========	===========
</TABLE>



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


                                      F-4
<PAGE>







                            SOUTH TEXAS OIL COMPANY
                            STATEMENT OF CASH FLOWS
                          For the Nine Months Ended
                          September 30, 2007 and 2006

<TABLE>
<CAPTION>

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

                                            		 UNAUDITED     UNAUDITED
                                              		 9 MONTHS      9 MONTHS
					       		   ENDED	 ENDED
                                              		  9/30/07       9/30/06
					     		-----------   -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss                                          	$(1,827,531)  $  (206,760)

Stock issued for services and purchases                      40,377        (3,055)
Stock issued for settlement of debt and interest	          -       100,620
Debt issuance costs related to funding		            852,323             -
Notes issued for purchases 	                          2,200,000	        -
Depreciation, depletion and amortization  	            750,947       101,370
Increase in accounts receivable  	    		 (3,397,340)      (34,127)
Increase in deposits 		                                  -        (2,550)
Increase in prepaid expenses 	         		    (49,891)       (4,074)
Decrease in related party accrued interest 	                  -        (9,000)
Increase in accrued interest 	                                  -        47,690
Increase in asset retirement obligation 	            277,562		-
Decrease in payroll liabilities 	                          -       (47,510)
Increase in accounts payable 	                          3,169,570        31,350
					     		-----------   -----------
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES	  2,016,016       (26,046)
					     		-----------   -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	                (20,649,783)     (578,228)
					     		-----------   -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (decrease) in loans payable	                    853,454       (66,650)
Decrease in related party notes payable	          	    (24,216)      (33,875)
Increase in line of credit 	                         16,945,000             -
Sale of common stock      	                                  -     1,124,531
					     		-----------   -----------
NET CASH PROVIDED BY FINANCING ACTIVITIES 	         17,774,238     1,024,006
					     		-----------   -----------
NET INCREASE (DECREASE) IN CASH 	                   (859,529)      419,732

BALANCE, BEGINNING 	                                  1,273,150     1,874,862
					     		-----------   -----------
BALANCE, ENDING  	                                $   413,621   $ 2,294,594
							===========   ===========

INTEREST PAID                                           $	656   $		-
							===========   ===========
TAXES PAID                                              $	  -   $		-
							===========   ===========
Summary of Non Cash Items:
Stock issued to pay royalty payments                    $    74,159
Purchase of leases for note and stock              	$31,025,316
Contribution of Vehicle from related party              $     2,151
Capitalized debt issuance costs                     	$ 5,700,945
Purchase of drilling rig with note and stock        	$ 1,000,000
</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  primarily  in
Colorado and  Texas.  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.

RECLASSIFICATION
Certain reclassifications, which have no effect on net income (loss), have been
made in the prior  period  financial  statements  to  conform  to  the  current
presentation.


NOTE 2 - OIL PROPERTIES

 Oil properties are made up of the following:

                              09/30/07       12/31/06
                            -----------     ----------
 Proved reserves            $19,565,812     $2,892,358
 Unproved reserves           33,981,800      1,238,950
 Drilling rigs                3,073,098              -
 Office equipment                97,482         31,433
 Vehicles                       144,728         22,753
  Accumulated depreciation   (1,773,623)    (1,022,732)
                            -----------     ----------
                            $55,089,297     $3,162,762
			    ===========     ==========


The company has recorded the entire asset retirement obligation related  to the
wells in Big Foot / Kyote as a current liability due to the sale pending as  of
September 30, 2007.  (See Note 9)



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 September 30,
2007 is 10.25%. The line  must  be renewed each year.  The balance at September
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.  On September 25, 2007 the credit
facility was increased to $30 million.  The interest rate on September 30, 2007
was 11.75%.  The balance owed as of September 30, 2007 is $16,945,000.  Accrued
and unpaid interest on September 30, 2007 was $432,351.

South Texas Oil  Company  and/or  its  subsidiaries will execute and deliver to
Lender those certain Conveyances of Overriding  Royalty  Interests,  each  in a
form  acceptable  to  Lender, whereby South Texas shall, and/or shall cause the
applicable Subsidiaries to, grant perpetual overriding royalty interests in its
and  the  subsidiaries'  current   and  future  interests  in  the  hydrocarbon
production of all of their leases in  the  Giddings and Bastrop properties (the
"Override Properties") as follows:

*      Overriding royalty interests of Lender  in the Override Properties equal
to 4% until the Override Properties produce 1,000  bbls  per  day  net  to  the
subject working interests for 90 consecutive days;

*      Thereafter,  overriding  royalty  interests  of  Lender  in the Override
Properties equal to 3% until the Override Properties produce 2,000 bbls per day
net to the subject working interests for 90 consecutive days; and

*      Thereafter,  overriding  royalty  interests  of  Lender in the  Override
Properties equal to 2%.

Notwithstanding the foregoing, at any time after Borrower repays in full all of
the  outstanding  Notes  (as defined in the Security Agreement)  and  the  Loan
Agreement has been terminated,  such  overriding royalty interests of Lender in
the Override Properties shall be 2%.



                                      F-6
<PAGE>

Note 4 - Notes Payable

The Company had loans outstanding  of $5,720,582 as of  September  30, 2007 as
follows:


INTEREST  LOANS PAYABLE                                           SEPT 30,
RATE                                                                2007
--------  ---------------------------------------------------	 --------
4.90%     Secured vehicle note payable, principal is $34,671,
	  required monthly payment of $799 for 48 months,        $ 31,030
          matures April 28, 2011.
4.90%     Secured vehicle note payable, principal is $30,090,
	  required monthly payment of $693 for 48 months,          26,930
          matures April 28, 2011.
Unstated  Note payable, principal of $180,000 with no stated
	  interest rate, required monthly payment of $5,000       117,317
          for 18 months, $22,500 for 4 months.  (Refer to
	  additional disclosure in Note 6 - Acquisition of
	  Assets)

	  Leexus shareholder note payable, payable out of	3,419,231
  	  production (See Note 6)

	  Diversity Petroleum, LP, payable at $62,500		1,426,074
	  per month for 24 months, matures October 2009

7.00%	  Granite Energy, Inc., payable at $31,341 per month	  700,000
	  for 24 months, matures November 2009

								---------
                   Total Notes Payable                          5,720,582
								---------
                   Less:  Current portion of long-term debt    (1,207,517)
								---------
                   Net Long-Term Debt                          $4,513,065
								=========



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 owed as of September 30,  2007  of  $24,530.   This  note is to 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 owed as of September 30, 2007 of $17,454.  This  note  is  to 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-7
<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 issued 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. During the quarter ended September 30, 2007, $41,172 of
the discount was amortized to expense.

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 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.  The purchase price is to be paid as
follows in accordance with the agreement:

   a.  The Company paid  Six Hundred and Ten  Thousand  four  hundred  eighteen
	dollars ($610,418) to Republic Bank of Norman OK to settle  the sellers
        outstanding loan.
   b.  The   Company   paid    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  was  required  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  reduction of
the  notes  incurred  during  the  nine  months  ended  September  30, 2007 was
approximately $62,700.

On  September 17, South Texas Oil purchased a second drilling rig from  Granite
Energy,  Inc. for $1,300,000.  The Company paid $300,000 in cash, issued 32,258
shares of  restricted stock valued at $300,000 and pay the remaining balance of
$700,000 over a period of 24 months at 7% interest.

On September  25,  2007,  South  Texas  Oil  Company,  through a subsidiary STO
Properties, LLC, purchased all rights, titles and interests  (of  whatever kind
or character, whether legal or equitable, and whether vested or contingent)  of
Diversity Petroleum, LLP (including interests in oil, gas and/or mineral leases
covering  such  lands  and wells, overriding royalties, production payments and
net profits interests in  such  lands,  such  leases and wells, and fee mineral
interests, fee royalty interests and other interests in such oil, gas and other
minerals)for an amount of $10 million by paying $7.5 million in cash, issuing a
promissory  note  for  $1.5  million  at ten percent  (10%)  interest  only  if
defaulted and issuing restricted shares  valued  at  $1  million.   Because the
interest  is  only  due upon default, the company recorded the note at its  Net
Present Value of $1,426,074.


                                      F-8
<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 $40,375 for services rendered through
September  30,  2007 and recorded  deferred  compensation  for  $16,625  as  of
September 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 September 30,
2007,  the  Company  expensed $1,266,878 of debt issuance costs.  The remaining
debt issuance costs of  $4,434,067 will be amortized over the next twenty eight
(28) months at $158,360 per month.

In connection with the agreement and plan of merger entered into between Leexus
Properties  Corp. and  South Texas Oil  Company, 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 and payment of  the  stock  was  made.   As  of September 30, 2007, the
Company has only acquired 37.5% of the working interest in these leases.

In connection with the recent acquisition on September 25, 2007, by South Texas
Oil Company, through a subsidiary STO Properties, LLC,  purchased  all  rights,
titles  and  interests  (of  whatever  kind  or  character,  whether  legal  or
equitable,  and  whether  vested  or  contingent)  of  Diversity Petroleum, LLP
(including interests in oil, gas and/or mineral leases covering  such lands and
wells,  overriding royalties, production payments and net profits interests  in
such lands,  such  leases  and  wells,  and  fee mineral interests, fee royalty
interests and other interests in such oil, gas and other minerals)for an amount
of $10 million by paying $7.5 million in cash,  issuing  a  promissory note for
$1.5 million and issuing 105,820 restricted shares valued at $1 million.

In connection with the purchase of the drilling rig during the 3rd quarter, the
company issued 32,258 shares of restricted shares valued at $300,000.

NOTE 8 - LEGAL PROCEEDINGS

South Texas Oil Company is currently the Plaintiff in a lawsuit  filed  against
Leexus LLP, Mr. Mark Jaehne and Mr. Bennie Jaehne for failing to adhere to  the
terms of the merger Agreement signed in April.

On August 29, 2007, South Texas Oil Company as plaintiff  filed a  Petition  as
Cause No. 2007-51820  in Harris  County District Court, TX, against  Leexus Oil
and Gas, LLP, Mark Jaehne   and Bennie  Jaehne as defendants.  South  Texas Oil
Company is claiming,  conversion, breach of  contract  and breach of  fiduciary
duty.  South Texas Oil  Company is  seeking the court to  enforce the  terms of
the   Merger   Agreement   which   have   being   breached,  the  repayment  of
misappropriated funds and attorneys fees.

On September 25, 2007  Bennie Jaehne and Mark Jaehne filed a countersuit  Cause
26,710 in  Bastrop County Texas against Murray Conradie, STO  Operating Company
(f/k/a Leexus Operating Company), and  South Texas Oil  Company (a/k/a Southern
Texas Oil Company)  as  defendants.  The  Jaehne's  are  claiming South Texas's
failure to comply with  the  Merger Agreement  and  are  claiming   damages  in
excess of $1,000,000.

South Texas Oil  Company  believes the Jaehne's  countersuit is  without  merit
and will continue  to  pursue all legal remedies related to this matter.  South
Texas Oil Company  is also  confident it will  prevail in  the outcome  of this
litigation and therefore is  not providing  a reserve  for this  action.


NOTE 9 - SUBSEQUENT EVENTS

South  Texas  Oil sold its interests in Atascosa, Frio and Somerset Counties on
October 5, 2007  to Granite Energy, Inc. for an amount of $3,061,937. This area
of operation was comprised  mainly  of  stripper  wells and was considered non-
core.  This sale will allow the Company to focus its  resources  on  its  South
Central  Texas  properties. While the sale was effective September 30, 2007, it
was not completed  until  October  5, 2007, thus it will be reported in the 4th
quarter.





                                      F-9


<PAGE>
<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 second drilling rig to cost
effectively drill 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.  The Company recently purchased  a  second  drilling rig to provide cost
       savings and flexibility in the drilling of its  own  wells.  The company
       expects to have this second rig drilling in the Bastrop field before the
       end of November.

    2.  The Company intends to re-enter two of the Bastrop verticals  and drill
       one horizontal leg in the Buda and one horizontal in the Chalk formation
       before year end.

    3.  The Company also intends to maintain its current schedule of drilling 2
       Bastrop wells per month through the end of 2007.

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.

    2. To Drill 3-5 oil wells in our Colorado acreage.

    3. Seek  additional acquisitions that  tie  in  with  our  focus  of  Texas
       properties.

                                       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. 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 facility was recently
increased to $30 million. This should  provide  the  necessary  capital for our
needs over the next twelve months.

Results of Operations

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

      Oil sales.  For the three months ended September 30, 2007,  oil  revenues
were  $1,575,011  compared  to  $173,544  for  the  same period during 2006, an
increase of $1,401,467.  The increase was the result of increased production in
our exploration endeavors and additional interest purchased  from properties of
which the company already held a position.

       Depreciation,  depletion and amortization.  Our depreciation,  depletion
and amortization expenses  were  $347,275  for the three months ended September
30,  2007  compared to $36,125 for the same period  in  2006,  an  increase  of
$311,150. The  increased depreciation, depletion and amortization expenses were
the result of the  purchase  of  equipment  and  leasehold improvements for the
period ended September 30, 2007.

      General and administrative expenses. General  and administrative expenses
were  $314,931  for  the  three  months ended September 30,  2007  compared  to
$122,861 for the same period in 2006, a decrease of $192,070. This increase was
primarily related to the additions  in  support  staff  need  for the increased
drilling  and  operation activity the company has experienced compared  to  the
period ended September 30, 2006.

      Interest expense (net of interest income).  Interest expense was $773,475
for the three months  ended  September  30,  2007  compared  to $0 for the same
period  in  2006,  an increase  of  $773,475.   The increase was due  to  asset
acquisition  through purchase oil and gas interest  funded  from  our  line  of
credit.

      Net income  (loss).  Net loss increased by $483,296 to $(495,143) for the
three months ended  September  30,  2007  from $(11,847) for the same period in
2006.  The  primary  reasons  for  this  decrease   include   a   increase   in
administration  costs of $192,070, an increase in production costs of $667,707,
an increase in depreciation,  depletion  and amortization costs of $311,150, an
increase in interest costs of ($773,475) associated with our recent funding, an
decrease in plugging costs of $15,821 and  an  increase  in production taxes of
$20,556.

For the nine months ended September 30, 2007 compared to the  nine months ended
September 30, 2006.

Oil  sales.   For  the nine months ended September 30, 2007, oil revenues  were
$2,466,906 compared to $446,253 for the same period during 2006, an increase of
$2,020,653.  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 $750,947  for  the  nine  months ended September 30,
2007 compared to $101,370 for the same period in 2006, an increase of $649,577.
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, 2007.

General and administrative expenses.  General and administrative expenses  were
$781,246  for the nine months ended September 30, 2007 compared to $299,419 for
the same period  in  2006, an increase of $481,827. 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 $1,741,055 for
the nine months ended September 30, 2007 compared  to  $159,303  for  the  same
period  in  2006,  an  increase  of  $1,581,752.  The increase was due to asset
acquisition  through  purchase oil and gas interest funded  from  our  line  of
credit.

Net income (loss).  Net  loss  increased  by $1,620,771 to $(1,827,531) for the
nine months ended September 30, 2007 from $(206,760)  for  the  same  period in
2006.  The  primary  reasons for this decrease include an increase in interests
costs  of $1,581,752, an  increase  in  drilling  rig  costs  of  $ 778,633, an
increase in depreciation, depletion and amortization costs of $649,577, coupled
with an offsetting increase in revenue of $2,940,965.

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, 2007 South Texas Oil Company
decreased its working capital from a positive $1,254,289  as  at  December  31,
2006  to  a  negative  $2,491,392  as  of September 30, 2007.  This decrease in
working capital was a result of a decrease  of  cash  on  hand  of $859,529, an
increase in accounts receivable of $3,397,341, an increase in prepaid  expenses
of $49,891, an increase in accounts payable of $3,169,572, an increase in asset
retirement obligation of  $277,562, an increase in current portion of long term
debt of $1,185,712, and an increase  in customer advances of $1,504,262, and an
increase  in related party debt, short term, of $856.

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, 2007 South Texas Oil Company  had  total assets of $63,848,752
compared to $4,485,891 on December 31, 2006, an increase  of  $59,362,861.  The
reason for the increase in assets is a result of the decrease in  cash  on hand
of  $859,529, an increase in accounts receivable of $3,397,341, an increase  in
prepaid  expenses  of  $49,891,  along  with  a  corresponding  increase in the
Property and Equipment and Reserves of $51,926,535, along with an  increase  in
Debt   Issue   Cost  of  $4,848,623.  South  Texas  Oil  Company  had  a  total
stockholders'  equity   of  $35,711,698  on  September  30,  2007  compared  to
$3,941,598 on December 31, 2006, an increase in equity of $31,770,100.

Significant Subsequent Events occurring after September 30, 2007:

      Effective October 1, 2007 the Company retained the services of Mr. Rickey
Cooksey as CFO and Mr. James Grubb as Vice-President Geology of South Texas Oil
Company.  Mr. Cooksey is qualified as a CPA with over 24 years of experience in
oil and gas accounting. Mr  Grubb  is  a  Certified  Petroleum Geologist with a
Master  of  Arts from Bowling Green University with over  30  years  experience
working both onshore and offshore.

      Effective  October  31, 2007 South Texas Oil Company began trading on the
NASDAQ Global Market under  its  current  symbol  STXX.   The  Company had been
trading on the OTCBB under the same symbol since 2005.

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   {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) 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 currently  the  Plaintiff  in  a lawsuit filed
against Leexus LLP, Mr. Mark Jaehne and Mr. Bennie Jaehne for failing to adhere
to  the  terms  of  the merger Agreement signed in April.  To the knowledge  of
management,  no federal,  state  or  local  governmental  agency  is  presently
contemplating any proceeding against South Texas Oil Company.

On August 29, 2007, South Texas Oil Company as plaintiff  filed a  Petition  as
Cause No. 2007-51820  in Harris  County District Court, TX, against  Leexus Oil
and Gas, LLP, Mark Jaehne   and Bennie  Jaehne as defendants.  South  Texas Oil
Company is claiming,  conversion, breach of  contract  and breach of  fiduciary
duty.  South Texas Oil  Company is  seeking the court to  enforce the  terms of
the   Merger   Agreement   which   have   being   breached,  the  repayment  of
misappropriated funds and attorneys fees.

On September 25, 2007  Bennie Jaehne and Mark Jaehne filed a countersuit  Cause
26,710 in  Bastrop County Texas against Murray Conradie, STO  Operating Company
(f/k/a Leexus Operating Company), and  South Texas Oil  Company (a/k/a Southern
Texas Oil Company)  as  defendants.  The  Jaehne's  are  claiming South Texas's
failure to comply with  the  Merger  Agreement  and  are  claiming  damages  in
excess of $1,000,000.

South Texas Oil  Company  believes the Jaehne's  countersuit is  without  merit
and will continue  to  pursue all legal remedies related to this matter.  South
Texas Oil Company  is also  confident it will  prevail in  the outcome  of this
litigation and therefore is  not providing  a reserve  for this  action.

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, 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 September 25, 2007, South Texas  Oil Company, through a subsidiary STO
Properties, LLC, purchased all rights, titles  and  interests (of whatever kind
or character, whether legal or equitable, and whether  vested or contingent) of
Diversity Petroleum, LLP (including interests in oil, gas and/or mineral leases
covering  such lands and wells, overriding royalties, production  payments  and
net profits  interests  in  such  lands, such leases and wells, and fee mineral
interests, fee royalty interests and other interests in such oil, gas and other
minerals)for an amount of $10 million by paying $7.5 million in cash, issuing a
promissory note for $1.5 million and  issuing  restricted  shares  valued at $1
million.

       This  transaction 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.


      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.1350 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.1350 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.1350
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.1350 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 July 19, 2007, item 2.01 and 8.01.

      On July 12, 2007, South Texas Oil Company issued a news release reporting
that South Texas Oil Company had acquired additional oil and gas interests.  On
June 18, 2007, South Texas Oil Company agreed to acquire  certain  oil  and gas
interests  and  certain  related  assets of Senora Resources, Inc and James  D.
Dobos, II, individually,  (collectively the "Seller"). There exists no material
relationship other than in  respect  of the transaction, between the registrant
or any of its affiliates, or any officer  and  director  and  the Seller of the
mineral  interests. South Texas Oil Company provided $1.8 million  in  cash  as
consideration for the purchase of the additional mineral interests.

      (b)   Report on Form 8-K filed July 31, 2007, item 7.01.

      On July  31, 2007, South Texas Oil Company provided a Corporate update to
the shareholders of the Company.  The purpose of this Regulation FD Disclosure,
is 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

      (c)  Report on Form 8-K filed August 28, 2007, item 5.02.

      On August  28,  2007,  South  Texas Oil Company filed a Current Report on
Form  8-K,  stating that Effective August  27,  2007,  Mr.  Conrad  Humbke  has
resigned as a member of our Board.  Mr. Humbke will be replaced by Mr.  Stanley
Hirschman as  an independent Director. Mr. Hirschman will be joined by Mr. Owen
Naccarato and Mr.  David  Lieberman as independent Directors bringing the total
Board members to 5.

      (d)  Report on Form 8-K filed September 26, 2007, item 1.01 and 8.01.

      On August 28, 2007, South  Texas  Oil  Company  filed a Current Report on
Form 8-K, stating that on January 31, 2007, South Texas  Oil Company received a
3 year, $15 million revolving credit facility.  On September  25,  2007,  South
Texas  Oil  Company  increased  the  credit  facility  from  $15 million to $30
million.  Additionally, on September 25, 2007, South Texas Oil Company, through
a  subsidiary STO Properties, LLC, purchased all rights, titles  and  interests
(of  whatever kind or character, whether legal or equitable, and whether vested
or contingent)  of  Diversity  Petroleum,  LLP (including interests in oil, gas
and/or  mineral  leases covering such lands and  wells,  overriding  royalties,
production payments  and  net  profits interests in such lands, such leases and
wells, and fee mineral interests,  fee royalty interests and other interests in
such oil, gas and other minerals)for  an  amount  of $10 million by paying $7.5
million  in  cash,  issuing  a  promissory note for $1.5  million  and  issuing
restricted shares valued at $1 million.

      (e)  Report on Form 8-K filed October 2, 2007, item 5.02.

      Effective September 30, 2007,  Marlene  Hutcheson  resigned  as the Chief
Financial  Officer  of  the Company to focus on other professional obligations.
Ms. Hutcheson has not had  any  disagreements with management or the company on
any  matter  relating  to  the company's  operations,  policies  or  practices.
Effective October 1, 2007 Mr.  Rickey  Cooksey was appointed as Chief Financial
Officer of South Texas Oil. Mr. Cooksey  is  qualified  as  a  CPA with over 24
years of experience in accounting.

      (f)  Report on Form 8-K filed November 7, 2007, item 7.01.

      On November 7, 2007, South Texas Oil Company provided a Corporate  update
to  the  shareholders  of  the  Company.   The  purpose  of  this Regulation FD
Disclosure,  is  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.

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<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,
                                   CEO, Chairman and Director
                                   (Principal Executive Officer)

                                   /s/ Rickey Cooksey, CPA
                                   ----------------------
                                   Rickey Cooksey,
                                   Chief Financial Officer
                                   (Principal Financial Officer)


                                   Date: November 16, 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,
                                   CEO, Chairman and Director
                                   (Principal Executive Officer)

                                   /s/ Rickey Cooksey, CPA
                                   ----------------------
                                   Rickey Cooksey, CPA
                                   Chief Financial Officer
                                   (Principal Financial Officer)


                                   Date: November 16, 2007












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