Cubic Energy, Inc. Provides Operational Update on Bethany Longstreet Acreage
Monday April 10, 4:35 pm ET
DALLAS, April 10, 2006 (PRIMEZONE) -- Cubic Energy, Inc. (OTC BB:QBIK.OB - News) (``Cubic'' or the ``Company'') announced today the Company has planned for and initiated staged completions in wells on their Bethany Longstreet acreage. All of these wells were initially completed in the lowest portion of the Cotton Valley known as the Taylor Sand.
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In conjunction with pipeline and production improvements made to the field gathering system, the Company has started to complete additional Cotton Valley zones in these wells. It is anticipated that these additional completions, or ``stages'', will continue up the wellbore in each well through the Cotton Valley, Lower Hosston and Upper Hosston intervals. Such completions will enable the Company to produce all of the Cotton Valley and Hosston intervals in each wellbore.
All of the Company's Bethany Longstreet wells have multiple zones that are expected to be commercially productive. Through additional completions, it is believed that field operations will bring reserves into the proven and/or producing classification. This will improve the Company's total reserves, producing reserves and cash flow.
The Company has successfully executed a second stage completion in the Moseley 25 No. 1 well and the Moseley 26 No. 1 well, and these two wells are under testing or flowback at this time. Cubic will continue the staged completions in these two wells while they prepare the Kraemer 24 No. 1 well for additional completion work. The Company also plans to initiate staged completions in its two most recent Bethany Longstreet wells, the Johnson 20 No. 1 and the Johnson 29 No. 1.
In addition to the Cotton Valley and Hosston intervals of the existing wells, each wellbore has additional shallow zones that the Company plans to develop with new shallow wells. The Company believes these shallow zones will be extremely beneficial for adding reserves and cash flow. Cubic has already staked two locations for these shallow wells.
Calvin A Wallen III, Chief Executive Officer of Cubic, stated: ``The completion of these additional reserves in our existing wells will add value to the company and to our shareholders, consistent with our overall business plan.''
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.
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