DALLAS, Aug. 14, 2006 (PRIMEZONE) -- Cubic Energy, Inc. (OTCBB:QBIK) ("Cubic" or the "Company") announced today that it has initiated drilling of its 6th Cotton Valley well. This well, the S.E. Johnson 19 No. 1, is located in the southern part of Cubic's Bethany Longstreet acreage in Section 19 of Township 14N -- Range 15W in DeSoto Parish, Louisiana.
This well commenced drilling on August 12, 2006, and has reached a depth of 2,214 feet on its way to a total depth of approximately 10,400 feet. Surface casing is currently being set and Cubic expects drilling to resume shortly. The objectives of the well are the prolific Upper Hosston, Lower Hosston, and Cotton Valley gas sands, along with previously identified shallow pay sands. Cubic has a 25% working interest in the S.E. Johnson 19 No. 1 well.
James L. Busby, Chief Financial Officer of Cubic stated: "This is the sixth well in Cubic's successful Bethany Longstreet development program. Cubic and its shareholders expect to benefit from this drilling with additional proved reserves, revenue and cash flow."
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.
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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 and activities discussed in this press release will be consummated.