DALLAS, Sept. 25, 2007 (PRIME NEWSWIRE) -- Cubic Energy, Inc. (OTCBB:QBIK) ("Cubic" or the "Company") today announces results of three new wells delineating large impact reserves in the Cotton Valley interval. Preliminary log analysis performed by The Scotia Group, Inc. for the three wells drilled in Cubic's Johnson Branch acreage (T15N R15W) of Caddo Parish, Louisiana, has determined the following results: The Tabor 4-1 well drilled to a total depth of 10,550' and logged 163 feet of net pay in the Cotton Valley between depths of 8,901'-9,798'. The McDonnell 8-1 drilled to a total depth of 10,500' and logged 142 feet of net pay in the Cotton Valley between depths of 8,907'-9,803'. The Luttrell 7-1 drilled to a total depth of 10,522' and logged 113 feet of net pay in the Cotton Valley between depths of 8,880'-9,648'. The aggregate net pay thickness in the three wells is 418 feet.
Cubic's aforementioned wells are located 5 miles southeast of the Nelson Oil and Gas Alfred #1 which completed in 1989 and since that time has produced 4.2 Bcf of gas and 75,000 barrels of condensate from 112 feet of perforations in the Cotton Valley (8,552'-8,664'). "This highly productive interval is present in all three of these new wells and appears to have similar log character. The Alfred #1 only penetrated the uppermost portion of the Cotton Valley. Since Cubic has drilled the entire prospective sand interval, we expect these new wells to produce at least as much or more from the Cotton Valley," stated Bruce Hinton, a partner in dB, LLC Petroleum Advisors and consultant to Cubic. In addition, Cubic is carefully analyzing prolific Hosston intervals found in these new wells.
Calvin Wallen, Cubic's CEO added, "Currently in the Johnson Branch acreage, Cubic has two additional wells at total depth which are undergoing evaluation, and we are conducting drilling operations on three additional wells. We anticipate that by the end of October a total of eight wells will have been drilled and evaluated in Johnson Branch. Our engineering and construction personnel are working on the pipeline and compression infrastructure needed to commence the completion of the first of the wells in the next six to eight weeks." Cubic has a 49% working interest in the Johnson Branch acreage.
Seven miles to the south in the Bethany Longstreet acreage, Cubic has drilled a total of 8 wells and is currently producing approximately 4000 Mcf per day from the Cotton Valley in 5 wells and from the Hosston in 5 wells. Work is ongoing at the Bethany Longstreet acreage to complete and fracture stimulate additional zones and to install gas lift and compression to significantly increase the average daily production from this area. Cubic has a 25% working interest in these producing wells.
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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The Scotia Group, Inc. is an independent reservoir consulting firm with offices in Dallas and Houston, Texas. The company, its officers and employees have no financial interest in Cubic Energy, Inc. The preliminary net pay results expressed in this press release are based on interpretative evaluations of wire line logs. The actual production results are subject to a wide range of uncertainties including fracture stimulation and well completion activities. All opinions expressed herein are made pursuant to the Safe Harbor Provisions stated below.
dB, LLC is an independent petroleum advisory firm with offices in Dallas, Texas. The company's members have no financial interest in Cubic Energy, Inc. Any opinions expressed in this press release are based on interpretative judgment derived from regional subsurface assessments and are made pursuant to the Safe Harbor Provisions stated below.
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, dependency on pipelines in which to sell the Company's natural gas it produces, reliance on third party contractors to aid in developing the production infrastructure and in the performance of well completion work, and other risks detailed in the Company's 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. Cubic can not guarantee any level of production from its wells.