DALLAS, Nov. 27, 2007 (PRIME NEWSWIRE) -- Cubic Energy, Inc. (OTCBB:QBIK) ("Cubic" or the "Company") announces today the results of specialized log analysis of the Bossier/Haynesville shale formations in the Company's Gloria's Ranch LLC 16 No. 1 well (Section 16 T15N-R15W) and in the Daniels 3 No. 1 well (Section 3 T15N-R15W). Utilizing data derived from Schlumberger's Platform Express and the Elemental Capture Spectroscopy logging tools, log analysts were able to determine the presence and estimated quantity of Shale Gas resources encountered in the well bore.
The reservoir characteristics of the Bossier/Haynesville shale formations in the Gloria's Ranch LLC 16 No. 1 and in the Daniels 3 No. 1 are very similar to the productive reservoir characteristics of the Barnett Shale, Fayetteville Shale and the Woodford Shale gas plays.
Log analysts identified two zones in the Gloria's Ranch LLC 16 No. 1. The lower zone is located between 11,350' and 11,600' in depth and calculates an estimated 93 BCF of Total Shale Gas and 72 BCF of Free Shale Gas per square mile of reservoir. The upper zone is located between 10,550' and 10,760' in depth and calculates an estimated 54 BCF of Total Shale Gas and 43 BCF of Free Shale Gas per square mile of reservoir.
Log analysts identified two geologically equivalent zones in the Daniels 3 No. 1. The lower zone is located between 11,400' and 11,600' in depth and calculates an estimated 84 BCF of Total Shale Gas and 70 BCF of Free Shale Gas per square mile of reservoir. The upper zone is located between 10,570' and 10,770' in depth and calculates an estimated 52 BCF of Total Shale Gas and 39 BCF of Free Shale Gas per square mile of reservoir.
Additional analysis is required to determine the recoverable gas per square mile of reservoir. Cubic has a 49% working interest in the Johnson Branch acreage.
Richard M. Sepulvado, Vice President of Exploration and Production, states, "Cubic looks forward to further analyzing this potential opportunity. Cubic plans to drill another well through the Bossier/Haynesville shale, and will closely monitor the activity of offset operators in the area."
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.
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