DALLAS, TX, May 16, 2006 -- Cubic Energy, Inc. (OTCBB:QBIK) ("Cubic" or the "Company") announced today that it has successfully finished the Cotton Valley zone third stage completions in the Moseley 25-1 and the Moseley 26-1 Wells.

The Company stated that, following the second stage completions, the wells together produced approximately 1,100 mcf/day from the second stage completions.

Following the third stage completions, each well was opened up to all completions and put on-line to sales. The wells are currently producing in the aggregate approximately 800 mcf/day, which is the maximum capacity of the compressor in use. Management believes that these wells may produce at modestly higher levels at such time as the production can be put through a larger compressor.

The wells are currently being prepared for upper and lower Hosston completions which will further increase each well’s production along with other field improvements to maximize our reserves.

Calvin A Wallen III, Chief Executive Officer of Cubic, stated: "This production represents an approximate 300% increase over prior production. The completion of additional reserves in our existing wells will continue to add value to the company and to our shareholders.”

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 any transactions or activities discussed in this press release will be consummated.

CONTACT: Cubic Energy, Inc.
Donna Luedtke , Investor Relations
(972) 686-0369
donna@cubicenergyinc.com
www.cubicenergyinc.com