DALLAS, Sept. 4, 2008 (GLOBE NEWSWIRE) -- Cubic Energy, Inc. (AMEX:QBC) ("Cubic" or the "Company") announced the Company has reached total depth of 11,950 feet on its Red Oak Timber 5 No. 1. 4 1/2" casing was set at 11,950 feet. The Red Oak Timber 5 No. 1 is Cubic's fifth Haynesville Shale well in its northwest Louisiana acreage. The Red Oak Timber 5 No. 1 is Cubic's second Haynesville Shale well to be drilled in the Company's southern acreage position of Bethany Longstreet.
Log analysis identified Cotton Valley and Hosston zones in addition to two Shale zones in the Red Oak Timber 5 No. 1. The Red Oak Timber 5 No. 1 is a direct offset to the Estes 7 No. 1. The two Shale zones in the Red Oak Timber 5 No. 1 are comparable to the Estes 7 No. 1 (see press release dated July 23, 2008).
"The Haynesville Shale encountered in the Red Oak Timber 5 No. 1 and the Estes 7 No. 1 is comparable in thickness and quality to the Haynesville Shale that is currently being produced by operators in Johnson Branch and Caspiana Fields," stated Richard Sepulvado, Vice President of Exploration and Production for Cubic Energy, Inc.
Cubic anticipates completion operations in the Haynesville Shale to begin on the Estes 7 No. 1 and the Red Oak Timber 5 No. 1 within 45 days. Cubic has a 35% working interest in these 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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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.