Cubic Energy Spuds 5th Cotton Valley Well

Cubic Energy says that the S.E. Johnson 29 #1, the Company's 5th Cotton Valley test in the Bethany Longstreet field, was spud on February 6, 2006. The well has reached a depth of 2,230 feet on its way to a total depth of approximately 10,500 feet. Surface casing is currently being set, and the Company expects drilling to resume shortly.

The S.E. Johnson 29 #1 is located in the most southeastern section of the Company's Bethany Longstreet acreage. This section is adjacent on the southern boundary of Section 20, where the Company recently drilled the S.E. Johnson 20 #1, which was announced as a success on February 6th.

The Company also stated that it is currently installing a 4-inch pipeline that will transport the gas production from the S.E. Johnson 20 #1 to the Company's existing compressor station located approximately two miles to the west of the well. This pipeline is expected to be completed in approximately two weeks.

In addition to the aforementioned wells, Cubic expects to drill at least four additional wells on its Bethany Longstreet acreage during 2006. This acreage now consists of 12 contiguous sections following the acquisition of four additional sections announced on February 7th.

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.