PRESS RELEASE

Date: July 25, 2007
Website: www.cubicenergyinc.com
E-mail: donna@cubicenergyinc.com

Information:

CUBIC ENERGY ANNOUNCES POSITIVE INITIAL PRODUCTION REPORT ON RUSHING 18 NO. 1 WELL AND THE SPUDDING OF TABOR 4 NO. 1 WELL

DALLAS, TX - Cubic Energy, Inc. (OTCBB:QBIK) (“Cubic” or the “Company”) announces results of the field test report from the Louisiana Conservation Commission with respect to the Rushing 18 No. 1 located in DeSoto Parish, Louisiana.  The Rushing 18 No. 1 tested at an aggregate initial production of approximately 1656 MCF per day from the Hosston and Cotton Valley zones, along with an aggregate of 6.68 BBLS per day of condensate.  Cubic has a 25% working interest in this well.

In addition, the Company announces it spud the Tabor 4 No. 1 on July 20, 2007.  The Tabor 4 No. 1 is the 2nd well located in Cubic’s northern acreage in Johnson Branch, Caddo Parish, Louisiana.  The Tabor 4 No. 1 is currently drilling at a depth of 5800 feet.  This is the 10th Cotton Valley well drilled in Cubic’s northwest Louisiana acreage, and is the 4th well drilled under its credit facility with Wells Fargo Energy Capital. 

Rick Sepulvado, VP of Exploration & Production, states “The production we are receiving from the Rushing 18 No. 1 is consistent with the results we are seeing in our northwest Louisiana acreage.  We look forward to an acceleration of drilling in our acreage, as well as bringing on line other wells in various stages of completion.”

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.