\u00ae\ue000 Written\ue000 communication\ue000 pursuant\ue000 to\ue000 Rule\ue000 425\ue000 under\ue000 the\ue000 Securities\ue000 Act\ue000 (17\ue000 CFR\ue000 230.425)
\u00ae\ue000 Soliciting\ue000 material\ue000 pursuant\ue000 to\ue000 Rule\ue000 14a-12\ue000 under\ue000 the\ue000 Exchange\ue000 Act\ue000 \ue000 \ue000 (17\ue000 CFR\ue000 240.14a-12)
\u00ae\ue000 Pre-commencement\ue000 communications\ue000 pursuant\ue000 to\ue000 Rule\ue000 14d-2(b)\ue000 under\ue000 the\ue000 Exchange\ue000 Act\ue000 (17\ue000 CFR\ue000 40.14d-2(b))
\u00ae\ue000 Pre-commencement\ue000 communications\ue000 pursuant\ue000 to\ue000 Rule\ue000 13e-4(c)\ue000 under\ue000 the\ue000 Exchange\ue000 Act\ue000 (17\ue000 CFR\ue000 240.13e-4\ue000 (c))

On\ue000 Friday,\ue000 February\ue000 20,\ue000 2009\ue000 South\ue000 Texas\ue000 Oil\ue000 Company\ue000 (the\ue000 \u201cCompany\u201d)\ue000 entered\ue000 into\ue000 definitive\ue000 agreements\ue000 with\ue000 Longview\ue000 Fund\ue000 L.P.,
a\ue000 California\ue000 limited\ue000 partnership\ue000 (\u201cLongview\u201d),\ue000 to\ue000 restructure\ue000 $26.1\ue000 million\ue000 of\ue000 the\ue000 Company\u2019s\ue000 senior\ue000 secured\ue000 debt\ue000 (plus\ue000 accrued\ue000 interest).\ue000 \ue000 The
debt\ue000 restructuring\ue000 includes\ue000 the\ue000 exchange\ue000 of\ue000 $16.3\ue000 million\ue000 in\ue000 principal\ue000 (plus\ue000 accrued\ue000 interest)\ue000 for\ue000 shares\ue000 of\ue000 Series\ue000 A\ue000 Convertible\ue000 Preferred\ue000 Stock
and\ue000 a\ue000 debt-non-core\ue000 asset\ue000 exchange\ue000 valued\ue000 at\ue000 $9.8\ue000 million.

Pursuant\ue000 to\ue000 the\ue000 Securities\ue000 Exchange\ue000 Agreement\ue000 with\ue000 Longview,\ue000 the\ue000 Company\ue000 will\ue000 issue\ue000 to\ue000 Longview\ue000 approximately\ue000 1.6\ue000 million\ue000 shares of\ue000 Series\ue000 A\ue000 Convertible\ue000 Preferred\ue000 Stock\ue000 in\ue000 exchange\ue000 for\ue000 the\ue000 surrender\ue000 and\ue000 cancellation\ue000 of\ue000 approximately\ue000 $16.3\ue000 million\ue000 of\ue000 the\ue000 Company\u2019s\ue000 senior secured\ue000 debt\ue000 held\ue000 by\ue000 Longview.\ue000 \ue000 The\ue000 Series\ue000 A\ue000 Convertible\ue000 Preferred\ue000 Stock\ue000 has\ue000 a\ue000 stated\ue000 value\ue000 of\ue000 $10.00\ue000 per\ue000 share,\ue000 has\ue000 no\ue000 coupon\ue000 rate\ue000 or dividends,\ue000 and\ue000 has\ue000 no\ue000 voting\ue000 rights.\ue000 \ue000 The\ue000 shares\ue000 of\ue000 Series\ue000 A\ue000 Convertible\ue000 Preferred\ue000 Stock\ue000 are\ue000 convertible\ue000 into\ue000 shares\ue000 of\ue000 common\ue000 stock\ue000 at\ue000 any time\ue000 subsequent\ue000 to\ue000 90\ue000 days\ue000 after\ue000 the\ue000 issuance\ue000 of\ue000 the\ue000 shares\ue000 at\ue000 a\ue000 conversion\ue000 price\ue000 of\ue000 $0.50\ue000 per\ue000 share\ue000 of\ue000 common\ue000 stock.\ue000 \ue000 The\ue000 issuance\ue000 of\ue000 Series A\ue000 Convertible\ue000 Preferred\ue000 Stock\ue000 is\ue000 subject\ue000 to\ue000 shareholder\ue000 approval,\ue000 and\ue000 the\ue000 closing\ue000 of\ue000 the\ue000 Securities\ue000 Exchange\ue000 Agreement,\ue000 as\ue000 well\ue000 as\ue000 the\ue000 Asset Purchase\ue000 and\ue000 Sale\ue000 Agreement,\ue000 will\ue000 take\ue000 place\ue000 upon\ue000 the\ue000 effectiveness\ue000 of\ue000 such\ue000 approval.

The\ue000 Company\ue000 also\ue000 entered\ue000 into\ue000 a\ue000 definitive\ue000 Asset\ue000 Purchase\ue000 and\ue000 Sale\ue000 Agreement\ue000 with\ue000 Longview\ue000 on\ue000 February\ue000 20,\ue000 2009,\ue000 to\ue000 sell\ue000 the
Company\u2019s\ue000 Colorado\ue000 DJ\ue000 Basin\ue000 properties\ue000 and\ue000 its\ue000 Unit\ue000 U34\ue000 Single\ue000 Drum\ue000 Draw-works\ue000 drilling\ue000 rig,\ue000 and\ue000 associated\ue000 assets,\ue000 for\ue000 a\ue000 combined\ue000 total\ue000 of
$9.8\ue000 million.\ue000 \ue000 Subject\ue000 to\ue000 the\ue000 terms\ue000 and\ue000 conditions\ue000 of\ue000 the\ue000 Asset\ue000 Purchase\ue000 and\ue000 Sale\ue000 Agreement,\ue000 on\ue000 the\ue000 closing\ue000 date,\ue000 South\ue000 Texas\ue000 Oil\ue000 shall\ue000 convey
these\ue000 assets\ue000 to\ue000 Longview\ue000 in\ue000 exchange\ue000 for\ue000 Longview\u2019s\ue000 discharge\ue000 and\ue000 satisfaction\ue000 of\ue000 $9.8\ue000 million\ue000 of\ue000 the\ue000 Company\u2019s\ue000 senior\ue000 debt\ue000 held\ue000 by
Longview.\ue000 \ue000 The\ue000 Colorado\ue000 property\ue000 disposition\ue000 includes\ue000 the\ue000 Company\u2019s\ue000 entire\ue000 37.5%\ue000 non-operated\ue000 working\ue000 interest\ue000 in\ue000 23,111\ue000 gross\ue000 (8,666\ue000 net)
acres.\ue000 \ue000 The\ue000 assets\ue000 being\ue000 conveyed\ue000 to\ue000 Longview\ue000 include\ue000 approximately\ue000 217,000\ue000 barrels\ue000 of\ue000 oil\ue000 equivalent\ue000 of\ue000 proved\ue000 reserves\ue000 and\ue000 an\ue000 estimated\ue000 18
barrels\ue000 of\ue000 oil\ue000 equivalent\ue000 per\ue000 day\ue000 of\ue000 net\ue000 production\ue000 located\ue000 in\ue000 Logan\ue000 County,\ue000 Colorado.

The\ue000 Asset\ue000 Purchase\ue000 and\ue000 Sale\ue000 transaction\ue000 for\ue000 the\ue000 disposition\ue000 of\ue000 both\ue000 the\ue000 Colorado\ue000 property\ue000 and\ue000 drilling\ue000 rig\ue000 will\ue000 close\ue000 concurrently
with\ue000 the\ue000 closing\ue000 of\ue000 Securities\ue000 Exchange\ue000 Agreement\ue000 and\ue000 the\ue000 issuance\ue000 of\ue000 the\ue000 Company\u2019s\ue000 Series\ue000 A\ue000 Convertible\ue000 Preferred\ue000 Stock\ue000 to
Longwood.\ue000 \ue000 Following\ue000 the\ue000 closing\ue000 of\ue000 both\ue000 transactions,\ue000 the\ue000 Company\u2019s\ue000 remaining\ue000 senior\ue000 secured\ue000 debt\ue000 will\ue000 be\ue000 approximately\ue000 $16.0\ue000 million\ue000 or
40%\ue000 of\ue000 its\ue000 current\ue000 senior\ue000 debt.

99.1Securities\ue000 Exchange\ue000 Agreement
99.2Series\ue000 A\ue000 Convertible\ue000 Preferred\ue000 Certificate\ue000 of\ue000 Designations
99.3Asset\ue000 Purchase\ue000 and\ue000 Sale\ue000 Agreement
99.4Asset\ue000 Purchase\ue000 Waiver\ue000 and\ue000 consent
99.5Press\ue000 Release\ue000 February\ue000 23,\ue000 2009

This\ue000 Securities\ue000 Exchange\ue000 Agreement\ue000 (this\ue000 \u201cAgreement\u201d),\ue000 is\ue000 made\ue000 this\ue000 February\ue000 20,\ue000 2009,\ue000 among\ue000 South\ue000 Texas\ue000 Oil\ue000 Company,\ue000 a\ue000 Nevada
corporation\ue000 and\ue000 its\ue000 Subsidiaries\ue000 (collectively\ue000 the\ue000 \u201cCompany\u201d),\ue000 and\ue000 Longview\ue000 Fund,\ue000 L.P.,\ue000 a\ue000 California\ue000 limited\ue000 partnership,\ue000 and\ue000 its\ue000 affiliates\ue000 that
appear\ue000 as\ue000 signatories\ue000 to\ue000 and\ue000 have\ue000 executed\ue000 this\ue000 Agreement\ue000 (collectively,\ue000 \u201cLongview\u201d\ue000 or\ue000 \u201cSubscriber\u201d).\ue000 \ue000 Capitalized\ue000 terms\ue000 used,\ue000 but\ue000 not
otherwise\ue000 defined,\ue000 herein\ue000 shall\ue000 have\ue000 the\ue000 meanings\ue000 ascribed\ue000 to\ue000 them\ue000 in\ue000 the\ue000 Purchase\ue000 Agreement,\ue000 as\ue000 amended\ue000 (as\ue000 defined\ue000 herein).

WHEREAS,\ue000 the\ue000 Company\ue000 and\ue000 Longview\ue000 entered\ue000 into\ue000 a\ue000 securities\ue000 purchase\ue000 agreement,\ue000 dated\ue000 as\ue000 of\ue000 April\ue000 1,\ue000 2008\ue000 (as\ue000 amended\ue000 by\ue000 the
June\ue000 2008\ue000 Amendment\ue000 Agreement,\ue000 and\ue000 as\ue000 may\ue000 otherwise\ue000 be\ue000 amended,\ue000 supplemented,\ue000 restated\ue000 or\ue000 modified\ue000 and\ue000 in\ue000 effect\ue000 from\ue000 time\ue000 to\ue000 time,\ue000 the
\u201cPurchase\ue000 Agreement\u201d),\ue000 pursuant\ue000 to\ue000 which\ue000 Longview\ue000 purchased\ue000 from\ue000 the\ue000 Company,\ue000 among\ue000 other\ue000 things,\ue000 secured\ue000 notes,\ue000 each\ue000 bearing
interest\ue000 payable\ue000 quarterly\ue000 to\ue000 Longview\ue000 (such\ue000 notes,\ue000 together\ue000 with\ue000 any\ue000 promissory\ue000 notes\ue000 or\ue000 other\ue000 securities\ue000 issued\ue000 in\ue000 exchange\ue000 or\ue000 substitution
therefor\ue000 (other\ue000 than\ue000 as\ue000 provided\ue000 in\ue000 this\ue000 Agreement)\ue000 or\ue000 replacement\ue000 thereof,\ue000 and\ue000 as\ue000 any\ue000 of\ue000 the\ue000 same\ue000 may\ue000 be\ue000 amended,\ue000 supplemented,\ue000 restated\ue000 or
otherwise\ue000 modified\ue000 and\ue000 in\ue000 effect\ue000 from\ue000 time\ue000 to\ue000 time,\ue000 the\ue000 \u201cNotes\u201d,\ue000 which\ue000 Notes,\ue000 together\ue000 with\ue000 all\ue000 Security\ue000 Agreements,\ue000 as\ue000 amended\ue000 and\ue000 restated,
Account\ue000 Control\ue000 Agreements,\ue000 Pledge\ue000 Agreements,\ue000 Subsidiary\ue000 Guaranty,\ue000 Additional\ue000 Security\ue000 Documents,\ue000 and\ue000 each\ue000 of\ue000 the\ue000 other\ue000 agreements\ue000 to
which\ue000 the\ue000 Company\ue000 or\ue000 its\ue000 Subsidiaries\ue000 is\ue000 a\ue000 party\ue000 or\ue000 by\ue000 which\ue000 it\ue000 is\ue000 bound,\ue000 excluding\ue000 Warrants,\ue000 Override\ue000 Conveyances\ue000 and\ue000 Mortgages
appurtenant\ue000 thereto,\ue000 are\ue000 collectively,\ue000 the\ue000 \u201cTransaction\ue000 Documents\u201d);

WHEREAS,\ue000 the\ue000 Company\ue000 and\ue000 its\ue000 Subsidiaries\ue000 (as\ue000 defined\ue000 herein)\ue000 have\ue000 granted\ue000 to\ue000 Longview\ue000 perpetual\ue000 overriding\ue000 royalty\ue000 interests
(\u201cORRI\u201d)in\ue000 the\ue000 hydrocarbon\ue000 production\ue000 of\ue000 certain\ue000 of\ue000 the\ue000 Company\u2019s\ue000 properties\ue000 as\ue000 set\ue000 forth\ue000 more\ue000 particularly\ue000 in\ue000 certain\ue000 Override\ue000 Conveyances
to\ue000 Longview;

WHEREAS,\ue000 the\ue000 current\ue000 principal\ue000 amount\ue000 plus\ue000 accrued\ue000 paid\ue000 in\ue000 kind\ue000 interest\ue000 of\ue000 the\ue000 Notes\ue000(the\ue000 \u201cPrincipal\ue000 Amount\u201d)\ue000 and\ue000 the\ue000 aggregate
per\ue000 diem\ue000 amount\ue000 of\ue000 accrued\ue000 interest\ue000 of\ue000 the\ue000 Notes\ue000 (the\ue000 \u201cPer\ue000 Diem\ue000 Interest\u201d)\ue000 due\ue000 at\ue000 the\ue000 Closing\ue000 Date\ue000 (as\ue000 defined\ue000 in\ue000 Section\ue000 11.3)\ue000 of\ue000 this
transaction,\ue000 after\ue000 giving\ue000 effect\ue000 to\ue000 Longview\u2019s\ue000 surrender\ue000 of\ue000 Notes\ue000 for\ue000 certain\ue000 assets\ue000 of\ue000 the\ue000 Company\ue000 pursuant\ue000 to\ue000 the\ue000 Asset\ue000 Purchase\ue000 and\ue000 Sale
Agreement,\ue000 of\ue000 even\ue000 date\ue000 herewith,\ue000 \ue000 are\ue000 collectively\ue000 referred\ue000 to\ue000 in\ue000 this\ue000 Agreement\ue000 as\ue000 the\ue000 \u201cTotal\ue000Obligations\u201d);