South Texas Oil sells $500,000 worth of debt

South Texas Oil Co. completed the sale of $555,000 worth of secured convertible notes in a private placement transaction via private placement offering memorandum.

The  private placement notes have a 14 percent interest rate and are due in 2011. The notes are convertible into South Texas Oil Co. common stock at a fixed conversion price of 50 cents per share.

Proceeds will be used to fund a portion of the company’s 2009 capital expenditure budget, for potential acquisitions and to provide working capital for general corporate purposes.

South Texas Oil’s private placement agreement also includes warrants giving the note holders the right to purchase one share of common stock for every $1 of the principal amount of the notes purchased. The exercise price for the warrants is 50 cents per share.

San Antonio-based South Texas Oil is engaged in the acquisition, production, exploration and development of crude oil and natural gas. The company operates in Texas, Louisiana and the Gulf Coast.

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Since 1999, the founders of PPM have provided professional business writing services, such as a PPM or business plan, to more than 2,000 businesses worldwide. Our company is considered to be the most cost effective, efficient consultants for private placement memorandum development in the United States. We are Wall Street’s, and by extension, the New York private placement (PPM) leaders.’s main service is the creation of private placement memorandum regulation d (Reg. d) documents. However, we offer much more. In case the entrepreneur needs additional services, such as a business plan, website, or additional legal work, PPM can create one pricing package for all required documentation or service. Because we simultaneously work with many companies both in and out of the U.S., the ability to adapt to the individual needs – as well as to regional and global demands – helps our clients save needed capital and time.

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