PRESS RELEASE

Date: April 23, 2007
Website: www.cubicenergyinc.com
E-mail: donna@cubicenergyinc.com

Information:

CUBIC ENERGY, INC. PROVIDES UPDATE ON DEVELOPMENT PROGRAM

DALLAS, TX - Cubic Energy, Inc. (OTCBB:QBIK) (“Cubic” or the “Company”) announces today that it has reached total depth, has run casing and is preparing to complete the Rushing 18 No. 1 , the 7th successful well in Cubic’s Bethany Longstreet acreage in DeSoto Parish, Louisiana.  Electric logs confirm the presence of Upper Hosston, Lower Hosston, and Cotton Valley gas sands.  Completion operations are expected to begin within the next few weeks, along with the construction of a 4” pipeline to connect the well to the Company’s existing infrastructure.

The drilling rig used for the Rushing 18 No. 1 is presently being moved to the recently completed location for the Estes 8 No. 1, the Company’s 8th Cotton Valley well, and the second well financed under our credit facility with Wells Fargo Energy Capital.

The Estes 8 No. 1 is expected to spud on or about April 25th, 2007 and is permitted to a total depth of 10,500 feet.  The objectives of this well are the Upper Hosston, Lower Hosston, and Cotton Valley gas sands, along with other potential shallow pays all of which have been encountered in the previous 7 wells drilled by Cubic.  Cubic has a 35% working interest in the Estes 8 No. 1.

Additionally, the Company has initiated operations to perforate and fracture stimulate the S.E. Johnson 19 No. 1.  Such operations are expected to be completed by April 24th.  The flowback and cleanup of the well is expected to commence on April 25th and should enable gas sales to begin at such time.

Following completion of the S.E. Johnson 19 No. 1, the Company will sequentially complete the remaining two S.E. Johnson wells.   Furthermore, the Company will be working simultaneously to add Hosston completions to the Kraemer 24 No. 1, Moseley 25 No. 1 and Moseley 26 No. 1 wells, which are currently producing from Cotton Valley completions.

“The progress of our development program is rapidly increasing.”  Calvin Wallen, CEO further states, “With the drilling of these two new wells and the additional completions on existing wells we expect to bring on-line significant production volumes that will help to establish the true value of the Company.”

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.

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. There can be no assurance that the transactions discussed in this press release will be consummated.