Cubic to Participate in 2nd Well at Bethany-Longstreet Field

Cubic Energy will participate in the drilling of a second Cotton Valley well on its 5,120 acre farmout in Bethany-Longstreet Field located in De Soto Parish, Louisiana.

The Moseley Jr. et al 25 No. 1 well is scheduled to be drilled to a total depth of 11,000 feet during the third quarter of 2004. The well will test expected pay zones in the Cotton Valley sands as well as anticipated pay zones in the Lower Hosston Sandstones, the Upper Hosston Sandstones, the Page and Rushing Members of the Pettet (Sligo) Formation and the Gloyd Member of the Rodessa Formation.

The Moseley Jr. et al 25 No. 1 well is staked in section 25 of Township 14 North, Range 16 West approximately 2,500 feet due south of the recently completed Kraemer 24 No. 1, the first well that Cubic Energy has participated in within the prolific Cotton Valley Gas Trend of North Louisiana.

Cubic Energy will own a 25% working interest in the well and expects the Moseley Jr. et al well to be on production during the fourth quarter of 2004. Other owners in the well are Caravel Resources, Inc. and Tauren Exploration, Inc. Fossil Operating, Inc. will operate the property.