DALLAS, Nov. 22, 2004 (PRIMEZONE) -- Cubic Energy, Inc. (OTCBB:QBIK) announced today that it has spud its Moseley 25 No. 1 well in De Soto Parish, Louisiana, which is part of its newly acquired North Louisiana Project. The Moseley 25 No. 1 is anticipated to drill to a total depth of 10,800 feet, targeting both the Cotton Valley and Hosston Formations. The Moseley well is an offset to the successful Kraemer 24 No. 1 well. Cubic Energy, Inc.'s working interest in this project is 25%. Current plans call for the well to reach total depth before the end of the year.
Cubic Energy, Inc. also announced that it has closed the acquisition of a 25% interest in the Kramer 24 No. 1 from investors in the Caravel Energy Fund 2003 - II. This transaction has an effective date of November 22, 2004, and will result in the issuance of 2,000,000 shares of Cubic Energy, Inc. common stock.
Commenting on these events Calvin A. Wallen, III, CEO stated, "The acquisition of a 25% interest in the Kramer 24 No. 1 well, along with the same interest in this exciting project is a material event for Cubic Energy. The spudding of the 2nd well in this field represents a period of what we believe could be rapid expansion. We anticipate spudding the 3rd well in the field upon completion of the Mosely 25 No. 1 well."
Cubic Energy, Inc. is an independent company engaged in the development and production of, and exploration for, crude oil and natural gas. The Company's oil and gas assets and activity are concentrated primarily in Alabama, Texas, Louisiana and New Mexico.
This press release includes statements, which may constitute "forward-looking" statements, usually containing the words "believe", "estimate", "project", "expect", or similar expressions. These statements are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, future trends in mineral prices, the availability of capital for development of mineral projects and other projects, acceptance of the Companies' products and services in the marketplace, competitive factors, dependence upon third-party vendors, and other risks detailed in the Companies' periodic report filings with the "Securities and Exchange Commission". By making these forward-looking statements, the companies undertake no obligation to update these statements for revision or changes after the date of this release.
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