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Cubic
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Dear Reader,
Today’s installment of the StockUpTicks Newsletter features
Cubic Energy, Inc. (OTCBB: QBIK), an independent oil and gas
company, which we introduced to you just last week (View our
full profile HERE.)
Cubic is back today with breaking news on its Bethany
Longstreet project located in Northern
Louisiana. This announcement notes that it has now completed
a second successful well on this valuable property.
Please review our January 10 profile or take a look at the detail
below regarding this exciting and lucrative project. This
property is virtually surrounded by mega-production wells, owned
by some of the biggest oil producers in the business. Please
don't miss out on the Cubic Energy story - fast becoming one to
tell your grandkids about!
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**BREAKING**
News From Cubic Energy |
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Press Release Source:
Cubic Energy, Inc.
Thursday January
13, 1:24 pm ET
Cubic Energy,
Inc. Drilled to Total Depth on The Moseley 25 No. 1 Well
DALLAS, Jan. 13, 2005 (PRIMEZONE)
-- Cubic Energy, Inc. (OTC BB:QBIK.OB - News) announced today
that it has drilled to total depth on its Moseley 25 No. 1 well
in DeSoto Parish, Louisiana. This is the second well for Cubic Energy
in its Bethany Longstreet project area that has been successfully
drilled and completed. The 25 No. 1 has been initially completed
in the lower most section of the Cotton Valley. After open-hole
logging was completed by Schlumberger, President and CEO Calvin
Wallen III stated, "It is believed that the well has over 300' of
net potential pay in five different horizons. All of the horizons
have commercial historical production in our immediate area further
proving the prolific serendipity of this project."
The Moseley 25 No. 1 has initially
completed only what represents 10% of its potential reserves. The
well had 750# of flowing casing pressure on a 1/2" choke within
72 hours of the frac treatment and a calculated 1,200 Mcf per day
flow rate on initial tests. The well will take 2-4 weeks to clean
up from the frac before a completion test will be done.
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.
The Cubic Energy company logo
can be found at http://www.primezone.com/newsroom/prs/?pkgid=1243
Contact:
Tate Renteria
(972) 686-0369
E-mail: ir@cubicenergyinc.com
Website: www.cubicenergyinc.com
Source: Cubic Energy, Inc.
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About
Cubic Energy Inc. |
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Cubic Energy, Inc. (OTCBB:
QBIK) is an independent energy company engaged in the oil
and gas industry with a well-established and highly-experienced
management team. The Company explores, develops and produces
crude oil and natural gas with assets and properties located mainly
in Texas, Oklahoma and Louisiana.
Cubic has a key relationship
and shares management with Tauren Exploration, a 16-year-old
private company that operates in Texas, Louisiana, and New Mexico.
Tauren is in large part a prospect house and has identified the
Bethany Longstreet project for Cubic Energy as well as many other
companies. Tauren is proving to be a tremendous asset to Cubic
in identifying prospects. The majority of the risk typically associated
with wildcat exploration is removed as a result of Cubic's relationship
with Tauren.
| "The key to success for smaller
exploration and production companies is identifying and positioning
themselves in the same way as their larger competitors.
In looking at the assets built by Cubic Energy, inc. in Northern
Louisiana, this is clearly the case. We believe that
this asset base will prove to be of tremendous value over
the next couple of years.
We anticipate that this story
will catch the attention of Wall Street in 2005, and we
are excited that Cubic Energy will be attending our annual
oil & gas conference in Palm Springs on February 18,
2005, where they will have an opportunity to outline their
plans for 2005."
Alexander Montano
-
Managing Dir. - Oil & Gas Group
at C.K. Cooper & Company
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glossary
of terms
Tcf: Trillion
cubic feet
mcf: Thousand
cubic feet
Mmcf: Million
cubic feet
Bcf: Billion
cubic feet
gd: gross
per day
e: equivalent
bbls: Barrels
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The Play At The Bethany Longstreet Field |
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The Bethany
Longstreet Field is located Northern Louisiana. The field was
discovered in 1951 and has produced approximately 400,000,000 mcf
of gas, 5.7 million bbls of oil and 9.64 million bbls of water.
The field is a combination of reservoirs that stretch into East
Texas such as the Glen Rose Reservoir, Paluxy, Rodessa, Pettet,
and upper Hosston Sands.
Major exploration and production
players are already heavily involved in and around Cubic's acreage
play in the East Texas to Northern Louisiana basin. The players
range from El Paso (NYSE: EP) to XTO (NYSE: XTO) and Goodrich Petroleum
(NYSE: GDP), all of which literally surround Cubic's acreage
position. The prolific Cotton Valley Sands formation,
along with many other pay zones, exists throughout the Bethany Longstreet
Field. The closest comparable to the
Bethany Longstreet Field is the Holly Field developed in 1977.
This field currently produces over 30 million mcfgd. Companies
operating to the west include BP America and Chevron and companies
operating to the east include Questar and Camterra.
(Excerpt) Oct.
12 2004 PRNewswire-FirstCall – Goodrich Petroleum Corporation
(NYSE: GDP) “The Company continues to project that it will drill
a total of fourteen to fifteen (14-15) Cotton Valley wells on its
approximate 40,000 acre block by the end of the year. All
of the eight wells drilled to date have been successfully completed
for a 100% success rate.” Goodrich recently increased the
capex budget from $25 million to $45 million with two thirds of
the increase being directed to the cotton valley trend where they
will now drill 40 wells.
In 2004 XTO Energy acquired properties
in the Bethany Longstreet area for $249 million, yielding them 182
billion cubic feet of gas equivalent (Bcfe) in reserves and 30 million
mcfe per day in production. The Oil and Gas Investor, February
2004 issue, mentions, “In just three and half years, XTO’s East Texas
production has rocketed from 20 million cubic feet a day to 372 mcf
per day.” Another acquisition that was completed in 2004 was
the Encore (NYSE: EAC) acquisition of properties in East Texas for
$82 million. This acquisition brought EAC 111 Bcfe of reserves and
7 million mcfe in daily production. John Brumley, president,
said, “This acquisition has more upside than most of Encore’s acquisitions.”
| "We continue to believe that
small-cap E&P companies will afford investors above average
returns in 2005. This belief is reinforced every time
we see a large cap E&P company buy back its stock or increase
dividends. We are simply amazed that with $6.00+ gas
and $40.00+ oil, they see this as the best use of their excess
cash. This leads us to conclude that while these larger
E&P companies are cash rich, they are prospect poor -
providing a decisive advantage to the smaller E&P players
that can acquire acreage, drill a select number of wells and
prove up the play, leading to the eventual sale or merger.
East Texas exploration has
been ongoing since 1894. Today rig activity is at
a feverish pace and predicted to continue into 2005.
This increased activity is due in part to new drilling techniques,
which have lowered costs, higher natural gas prices and
the ease of repeatability in the play. Companies are
scrambling to acquire acreage targeting the prolific Cotton
Valley Sands and Travis Peak formations, each of which contain
several thousand Bcfe in reserves."
Phillip J. McPherson
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Dir. of Research - Oil & Gas Group
at C.K. Cooper & Company
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Cubic Energy's Play At The Bethany Longstreet Field |
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QBIK acquired a 25% working
interest in 8 sections or 5,120 acres in the Bethany Longstreet
play from Tauren Exploration. Based on conservative reserve
estimates, there are 240 billion cubic feet (Bcfe) of gas in the
8 sections in which Cubic has a working interest. The first
well has an estimated 10.9 Bcfe in reserves. The daily production
was tested 1.5 Mcfe or $10,500 a day in revenue using 7 dollar gas.
Cubic plans to drill 8 wells during 2005. Eight wells with
an average of 8 Bcfe per well will add 64 Bcfe, which nets 16 Bcfe
to Cubic in 2005 alone! Even on a very conservative basis,
this should add DAILY production revenue of $21,000 or $7.6 million
in annual revenue.
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Financial Highlights For Cubic Energy Inc. |
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QBIK
is 100% Debt Free
QBIK
Stock is priced 25% below its high
The
demand for domestic oil continues to grow
(To
view the latest SEC filings for QBIK, the link is HERE)
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Industry: Energy
Recent Price: $1.01 (as of 01/13/05)
52wk Range: $0.25 - $1.20
Avg Vol (3m): 7,407
Fiscal Year End: 06-30
Transfer Agent: Securities Transfer Corporation
Outstanding Shares 31,451,824 (as of 10/30/04)
Estimated Market Cap: $31.766M
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12-Nov-2004 Quarterly
Report
ITEM 2. MANAGEMENT'S
DISCUSSION AND ANALYSIS
Gross Revenues for the three months
ended September 30, 2004 increased to $105,263 from $104,422
at September 30, 2003, due to higher natural gas prices
and despite decreased gas production.
QBIK
FOR THE PAST YEAR
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TO CONTACT CUBIC ENERGY INC. |
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Headquarters
Contact: Tate Renteria
9870 Plano Rd., Dallas, Texas 75238
(972) 686-0369 Phone - (972) 681-9687 Fax
e-mail: ir@cubicenergyinc.com
Corporate Web Site: www.cubicenergyinc.com
To Request Information:
If you would like to be added to the QBIK fax,
e-mail, or distribution list, the link is HERE
***
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