PRESS RELEASE

CUBIC ENERGY EXERCISES RIGHT TO ACQUIRE 25% IN BETHANY LONGSTREET PROJECT

DALLAS, TEXAS – June 1, 2004: Cubic Energy, Inc. (OTC: QBIK) announced today that it has exercised its right to acquire 25% interest in the first well in the Bethany Longstreet project, located in Northern Louisiana. In December 2003, Cubic announced that it had entered into an agreement with Tauren Exploration whereby it could review wells/projects drilled by Tauren and exercise a right to purchase up to a 25% working interest. This is the first option that Cubic has exercised as part of this strategic relationship.

The well was drilled in January of this year and completed May 12. The well hit several potential pay zones and testing is currently underway. Final construction of the compressor facility is being finished and the well is anticipated to enter into production in the next week. Review of the property was conducted by an independent third party engineering group.

“Cubic Energy has been looking for a project that would provide a core area for development for the Company; this is why we entered into the relationship with Tauren. Based upon the initial results of this well, we believe this could have the characteristics we desire,” stated Calvin A. Wallen III, President and CEO of Cubic. “We knew this project had the potential to give us the kind of opportunity the Company needs to take Cubic to the next level in its development. The play and targeted reservoirs can potentially generate all three areas of reserve classification along with the cash flow for ongoing development while maintaining a low risk exposure.”

Additional wells will be drilled this year in the project and Cubic has the same opportunity to participate and/or acquire interest.
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.