DALLAS, May 7, 2007 (PRIME NEWSWIRE) -- Cubic Energy, Inc. (OTCBB:QBIK) ("Cubic" or the "Company") announces today that it has reached a depth of 10,441 ft. on the Estes 8 No. 1, the 8th well in Cubic's Bethany Longstreet acreage, and continues to drill deeper as it has encountered additional sands below the Taylor sands in the Cotton Valley. Cubic expects to reach total depth in this well within the next forty-eight hours. The Company will then run electric logs for formation analysis of the Upper Hosston, Lower Hosston, and Cotton Valley gas pay sands. Cubic has a 35% working interest in the Estes 8 No. 1.
Additionally the Company reported that the S. E. Johnson 19 No. 1 is still under flow back from its completion but is currently selling gas from both the Cotton Valley and Hosston pay sands. "Production rates during this flow back period are very encouraging and should further establish the value of this resource play." CEO Calvin Wallen further states, "We anticipate production rates to increase while the well continues to clean up. The company will then file a state completion report."
Later this week, the S. E. Johnson 20 No. 1 will be perforated and fracture stimulated in order to complete the well in the Upper Hosston and Cotton Valley pay sands.
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 Company undertakes no obligation to update these statements for revision or changes after the date of this release. There can be no assurance that any future activities and/or transactions mentioned in this press release will occur as planned.