South Texas Oil to Spud Three Colorado Wells

South Texas Oil Co.

South Texas Oil Company, an independent oil company active in the acquisition, development and operation of oil and gas properties with proven reserves, on Thursday announced the drilling of three new wells.

South Texas Oil's President, Murray Conradie stated, "As part of our evaluation of the DJ basin in Northeast Colorado, we have committed to our 75% participation in the drilling of 3 new wells. Drilling will commence next week of the Marilee State #11-16, 5,450 ft; the DOUD #43-5, 5,550 ft and the DOUD #11-4, 5,600 ft, with anticipated completion of all three by year end.

"An initial test well drilled recently is currently producing 200,000 cubic feet of gas per day and should provide approximately $30,000 in monthly cash flow to the company. We anticipate each of these next three wells to substantially exceed this amount."

South Texas Oil's President, Murray Conradie continued, "We are very excited about the future potential of the DJ basin and are aiming to have our due diligence completed and finalize the acquisition of our 75% working interest under approximately 20,000 gross acres in January 2007."

South Texas Oil Company was formed for the purpose of the development and operation of oil properties with proven reserves. South Texas Oil currently has 5,244 acres of oil properties made up of 3,605 acres in Frio County, Texas and 1,639 in Atascosa County, Texas.