DALLAS, Jan. 25, 2006 (PRIMEZONE) -- Cubic Energy, Inc. (OTCBB:QBIK) ("Cubic" or the "Company") provided an update today on its drilling operations. Specifically, the drilling of the S.E. Johnson 20 No. 1 continues as expected. This well, which spud on January 12, 2006, is currently drilling at approximately 8,500 feet on its way to a total depth of 10,500 feet. The S.E. Johnson 20 No. 1 represents the Company's fourth Cotton Valley test in the Bethany Longstreet field.
The road and location for the S.E. Johnson 29 No. 1, the Company's fifth Cotton Valley test is proceeding as planned and drilling operations are expected to commence next month following the rig move from the S.E. Johnson 20 No. 1.
Richard Sepulvado, Senior Vice-President of Exploration and Production stated: "We expect this well to confirm the eastern expanse of our southern Bethany Longstreet acreage. That acreage, which is comprised of eight contiguous sections, is on structure and is expected to have productive intervals in the Cotton Valley, Hosston and several other shallow formations. We have not yet reached total depth in the S.E. Johnson 20 No. 1, however we are encountering the targeted shallow formations at the depths we expected. Although further testing will be required to confirm the productivity of this well, indications from the mud logs are positive."
In addition to the aforementioned wells, Cubic expects to drill at least four additional wells on its Bethany Longstreet acreage during 2006. Those wells, which are also expected to be drilled in Cubic's southern Bethany Longstreet acreage, are scheduled to begin in the second calendar quarter.
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 Texas and Louisiana.
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. There can be no assurance that the transactions discussed in this press release will be consummated.
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