SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of
1934
Date of Report (Date of earliest event reported) August 21, 2000
SOUTH TEXAS DRILLING & EXPLORATION, INC.
(Exact name of registrant as specified in its charter)
State of Texas 2-70145 74-2088619
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
9310 Broadway, Building 1, San Antonio, Texas 78217
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code(210) 828-7689
_______________________________________________________________
(Former name or former address, if changed since last report.)
Item 2. Acquisition or Disposition of Assets.
On August 21, 2000, the Registrant acquired all of the
issued and outstanding stock of Pioneer Drilling Co., a Texas
corporation, pursuant to a Stock Purchase Agreement dated July 21,
2000, as amended. Pioneer Drilling Co. is engaged in the onshore
contract drilling business, and its assets include four land
drilling rigs and associated machinery and equipment, three of
which are owned and one of which is leased from International
Drilling Services, Inc. The Registrant intends to continue Pioneer
Drilling Co.'s drilling business, and to utilize its drilling
assets in conjunction with the Registrant's land contract oil and
gas drilling operations.
The consideration for the acquisition consisted of a cash
payment of $10,731,456 and issuance of 341,575 restricted shares of
Registrant's common stock. The purchase price was the result of
arm's-length negotiations.
The source of funds for the acquisition includes proceeds from
Registrant's borrowings under its (1) $9,000,000 credit facility
with The Frost National Bank, N.A. and (2) $3,000,000 credit
facility with The American Bank, N.A., each of which was entered
into in connection with the acquisition.
Item 7. Financial Statements and Exhibits.
The financial statements required by Item 7 are not included
in this report, but will be filed within 60 days after the date
this report is filed.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned hereunto duly authorized.
Date: September 1, 2000 SOUTH TEXAS DRILLING &
EXPLORATION, INC.
By: /s/ Wm. Stacy Locke
Wm. Stacy Locke, President
