June 17, 2009 (FinancialWire) — South Texas Oil Co. (NASDAQ: STXX) (Current Market Cap: $11.58 Mil.) said is has closed the sale, through a non-brokered private placement, of $555,000 in 14% secured convertible notes due in 2011.

The company said it will use the proceeds to fund a portion of its 2009 capital expenditure budget, for potential acquisitions, and to provide working capital for general corporate purposes.

The notes are convertible into South Texas Oil company common stock at a fixed conversion price equal to $0.50.

Included in the private placement are five-year warrants with an exercise price that is fixed at $0.50 per share.

San Antonio-based South Texas Oil is an independent energy company engaged in the acquisition, production, exploration and development of crude oil and natural gas. The company’s core operating areas include Texas, Louisiana and the Gulf Coast.

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