DALLAS, Jan. 24, 2005 (PRIMEZONE) -- Cubic Energy, Inc. (OTCBB:QBIK) announced today that it has reached total depth and set casing on the Moseley 26 No.1 well in De Soto Parish, Louisiana, which is part of its newly acquired North Louisiana Project. The Moseley 26 No. 1 reached total depth of 10,500 feet in the Cotton Valley Formation. The interpretation of the electric logs indicate the potential of 295ft. of net pay in the Cotton Valley, Lower Hosston, Upper Hosston, Pettet and Gloyd Formations. The Moseley well is an offset to the successful Kraemer 24 No. 1 well and the Moseley 25 No. 1 well. Cubic Energy, Inc.'s working interest in this project is 25%. It is anticipated that these wells should commence sales in February, with revenues being recognized by Cubic in its fiscal 3rd quarter.
President and CEO, Calvin Wallen III, stated, "This well clearly demonstrates the potential of this newly acquired project. The fact that we logged 295 feet of potential net pay furthers our confidence that this project has the potential to rapidly transform Cubic Energy, Inc. into a substantial E&P company. We anticipate continuing a very active pace of activity, with continued drilling through the spring of 2005."
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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