Dallas, Texas, December 16 - Cubic Energy, Inc. (OTCBB: QBIK) announced today that it has an agreement with Tauren Exploration, Inc. and Caravel Resources, Inc. (and certain Caravel Resources, Inc. affiliates) to analyze and potentially acquire up to a 30% working interest in the Bethany-Longstreet development project. The project is located in Caddo and De Soto Parishes, Louisiana and is in the heart of a large and active gas producing area of western Louisiana.

Tauren Exploration, Inc. currently controls over 5,000 acres and may have the opportunity to acquire up to an additional 2,500 acres in this area. The primary formations to be developed are the Hosston and Cotton Valley but several other shallower zones from the Paluxy to the Pettet are serendipitous. This area of east Texas and western Louisiana has produced in excess of 2 Tcf from older fields with very sparse development in the Hosston and Cotton Valley.

Calvin Wallen III, President and CEO of Cubic commented, “This project represents a significant first step opportunity for the company in establishing PDP and PUD gas reserves of a low risk nature. Recent activity and transactions involving the development and acquisition of properties in this area have established prolific valuations for reserves. We are very excited to have a project of this nature that can potentially take the company to a new financial plateau.”

The first well location has been built and the drilling contractor will move in prior to year-end. After the first well is drilled and tested Cubic will have the opportunity for the back-in acquisition. This is expected to occur sometime in the 1st Quarter of 2004.

Cubic Energy, Inc. is an independent company engaged in the development and production of, and exploration for, crude oil and natural gas. Cubic Energy’s oil and gas assets and activity are concentrated primarily in Texas, Louisiana and New Mexico.