Cubic Energy announced, based on drilling projections recently provided by operators of its Haynesville Shale acreage, the Company is scheduled to participate in up to 13 gross and 4.62 net horizontal Haynesville Shale wells (36.2% working interest) in calendar year 2010.
If these projected wells are drilled as currently scheduled, Cubic's capital expenditures for the calendar 2010 drilling program could exceed $40,000,000. Cubic's share of the cost of the majority of these wells currently scheduled to be drilled through December 31, 2010 would be covered by a Drilling Credit acquired in November, 2009. Generated cash flow, cash on hand and/or existing credit availability could also be utilized for drilling obligations, if necessary. These wells are operated by other companies and the current drilling schedule for these wells is subject to change based upon factors beyond Cubic's control.
Cubic also announced a peak twenty-four (24) hour flow rate of approximately 1350 Mcfe per frac stage from its Red Oak 6 No. 1 well (35% working interest) in its Bethany Longstreet acreage in southern Caddo Parish, Louisiana. Only five frac stages of the anticipated fifteen were pumped due to a breach in the casing at approximately 11,000'. However, an additional well with a 10 to 15 frac stage completion is already planned for this Section.
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