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Cubic
Energy Inc., (OTCBB: QBIK) |
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Dear Reader,
Cubic Energy, Inc. (OTCBB: QBIK), recently announced the
results of its drilling program on one of its newly acquired properties
in prolific Cotton Valley formation in North Louisiana (see news
below). The impact of this news has not really been felt by
the market yet though and this presents an opportunity for you.
The initial results were extremely good and the impact to the company
could be monumental.
So please allow me to attempt a completely non-technical commentary
to bring you up to speed. Cubic drilled deep enough to reach
through five known formations or layers of ground that provide specific
geological data about what lies below them. The data indicated
that there is 1 billion cubic feet of natural gas in each
of 5 zones. Ok - now let me give you a real-world example
we can all understand: 1 billion cubic feet of gas equals $3 million.
So, 5 billion cubic feet equals $15 million. That's
what Cubic just discovered in their well - based on very well established
and accepted geological evidence - 15 million dollars! That's
pay dirt my friends - not some pie in the sky, maybe it will happen
someday, deal. As today's news indicates, Cubic has now fracture
treated the well. This is the final step necessary prior to
production. Sales are expected to commence THIS MONTH!
And this is a repeat performance. In each of the three
sections of land that Cubic has drilled they have had similar results.
Cubic has a remarkable 100% hit rate so far -- with FIVE sections
left to drill. Cubic could rapidly become a substantial exploration
and production company.
View our full profile on Cubic Energy Inc. HERE.
Please
review our January 10 profile regarding Cubic Energy's exciting
and lucrative projects. These properties are 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 grand kids about!
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**BREAKING**
News From Cubic Energy |
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CUBIC ENERGY,
INC. FRACTURE TREATED ITS MOSELEY 26 NO. 1 WELL
DALLAS, TX - February 14, 2005
- Cubic Energy, Inc., (NASDAQ:OTC:BB:QBIK) - announced today
that it has recently completed the Taylor Sand of the Cotton Valley
in the Moseley 26 No. 1 well in DeSoto Parish, Louisiana.
The well was successfully fracture treated by Schlumberger and is
currently cleaning up and flowing back. A test will be run
on the well later this month.
This is the third well for Cubic
in its 8 section land position and in which the Company owns a 25%
working interest.
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 Alabama, 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.
Tate Renteria
(972) 686-0369
E-mail: ir@cubicenergyinc.com
Website: www.cubicenergyinc.com
Source: Cubic Energy,
Inc.
Press Release
Source: Cubic Energy,
Inc.
Monday January 24,
2:57 pm ET
Cubic Energy,
Inc. Reached Total Depth and Set Casing on the Moseley 26 No.
1 Well
DALLAS, Jan. 24, 2005 (PRIMEZONE)
-- Cubic Energy, Inc. (OTC BB:QBIK.OB - News) announced today
that it has reached total depth and set casing on the Moseley 26
No.1 well in De Soto Parish, Louisiana, which is part of its newly
acquired North Louisiana Project. The Moseley 26 No. 1 reached total
depth of 10,500 feet in the Cotton Valley Formation. The interpretation
of the electric logs indicate the potential of 295ft. of net pay
in the Cotton Valley, Lower Hosston, Upper Hosston, Pettet and Gloyd
Formations. The Moseley well is an offset to the successful Kraemer
24 No. 1 well and the Moseley 25 No. 1 well. Cubic Energy, Inc.'s
working interest in this project is 25%. It is anticipated that
these wells should commence sales in February, with revenues being
recognized by Cubic in its fiscal 3rd quarter.
President and CEO, Calvin Wallen
III, stated, "This well clearly demonstrates the potential of this
newly acquired project. The fact that we logged 295 feet of potential
net pay furthers our confidence that this project has the potential
to rapidly transform Cubic Energy, Inc. into a substantial E&P
company. We anticipate continuing a very active pace of activity,
with continued drilling through the spring of 2005."
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 Alabama, 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.
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
-
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 10% 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: $1.10 (as of 02/11/05)
52wk Range: $0.30 - $1.21
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
vs SPX
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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