PRESS RELEASE

NASDAQ:OTC:BB:/QBIK

FOR IMMEDIATE RELEASE: Jan 26, 2003
WEBSITE: www.cubicenergyinc.com


INFORMATION: (972) 686-0369
E-MAIL: ir@cubicenergyinc.com


Cubic Energy Comments on Insider Activity

DALLAS, TEXAS - January 26, 2004: Calvin A. Wallen III, President and CEO of Cubic Energy, Inc. (OTC:QBIK), has disposed of a small, non-material amount of his holdings in Cubic Energy, Inc. The purpose for these transactions was year-end financial and tax planning. These transactions were agreed to in November of 2003, but were just recently closed and are now being announced.

Mr. Wallen, with respect to the near term prospects for Cubic Energy, Inc., stated “We anticipate that 2004 will be a period of increased drilling activity and business opportunity for the company, that, when coupled with current commodity prices, should truly position Cubic Energy, Inc. for the future.”

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, Louisiana and New Mexico.

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, acceptance of the Companies' products and services in the marketplace, competitive factors, dependence upon third-party vendors, and other risks detailed in the Companies' periodic report filings with the "Securities and Exchange Commission". By making these forward-looking statements, the companies undertake no obligation to update these statements for revision or changes after the date of this release.