South Texas Oil Company Announces Second Quarter 2008 Financial Results

South Texas Oil Company, today announced second quarter 2008 financial results.

Second Quarter 2008 Results

The Company reported record oil and gas sales for the quarter-ended June 30, 2008 of $3.8 million, versus $796,000 in the same period in 2007, an increase of 383%. Total revenues were $3.8 million for the second quarter 2008, versus $1.3 million in the year-ago period. Drilling services, a revenue line item in previous periods, did not contribute to total revenue in the 2008 quarterly period, but did contribute $522,000 in the second quarter 2007.

The Company reported a net loss for the second quarter 2008 of $6.8 million, or $0.42 per share, compared with a net loss of $800,000, or $0.07 per share, for the same period in 2007. Included in the second quarter 2008 costs and expenses was a loss from derivatives of $4.3 million, compared to no loss for the same period in 2007. The agreements which generated the losses during the second quarter 2008 were completely offset by additional contracts purchased at the end of the quarter. Because of the contracts' covered status, the Company does not anticipate that future additional losses will be realized from the contracts that were outstanding during the second quarter 2008. The Company did not engage in derivative transactions during the second quarter 2007.

All per-share amounts are presented on a weighted average basis. At June 30, 2008, 16,017,736 weighted average shares were outstanding. read more

Source: South Texas Oil Company