PRESS RELEASE

Cubic Energy Participates in Discovery at Bethany-Longstreet Field

Cubic Energy is in negotiations to acquire a 25% interest in the first Cotton Valley discovery well on a 5,120 acre farmout in Bethany-Longstreet Field located in De Soto Parish, Louisiana.

The Kraemer 24 No. 1 well was drilled to a total depth of 10,247 feet and logged approximately 178 feet of net pay in the Cotton Valley sands. Additional pay was logged in the Lower Hosston Sandstones, the Upper Hosston Sandstones, the Page and Rushing Members of the Pettet (Sligo) Formation and the Gloyd Member of the Rodessa Formation.

The Kraemer 24 No. 1 well is the first well on the acreage that is in the prolific Cotton Valley Gas Trend, which extends from East Texas to North-Central Louisiana. In addition to the 5,120 acres at Bethany-Longstreet, Cubic Energy is participating in ongoing lease acquisitions in other areas favorable to Cotton Valley production.

Other owners in the well are Caravel Resources, Inc. and Tauren Exploration, Inc. Fossil Operating, Inc. operates the property.
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.