Cubic Energy, Inc., successfully drilled the S.E. Johnson 20 #1, the Company’s 4th Cotton Valley well in the Bethany Longstreet field. Logging operations identified several Cotton Valley intervals, along with various upper and lower Hosston sands that are expected to be productive. Casing has now been run and cemented, and the Company expects to perform completion operations in the near future.

Drilling operations are expected to commence immediately on the S.E. Johnson 29 #1, the Company’s 5th Cotton Valley test, following the rig move which is substantially complete.

Calvin Wallen III, Cubic’s President and CEO stated: “We continue to successfully execute our development program while proving our interest in the Bethany Longstreet field. With the successful completion of this well, the Company will prove that the Cotton Valley formations, found to be productive in our first three wells on the western side of our acreage, extends eastward and is productive on the eastern flank of our eight contiguous sections (5,120 acres gross, 1,280 net). We are very pleased with the additional results in our Bethany Longstreet acreage.”

In addition to the aforementioned wells, Cubic expects to drill at least four additional wells on its Bethany Longstreet acreage during 2006. Those wells, which are also expected to be drilled in Cubic’s southern Bethany Longstreet acreage, are scheduled to begin in the second calendar quarter.