|Cubic Energy, Inc. (Cubic), incorporated in 1999, is an independent energy company engaged in the development and production of, and exploration for, crude oil, natural gas and natural gas liquids. The Company’s oil and gas assets are concentrated in Texas and Louisiana. As of June 30, 2010, its total proved reserves were 29,209,160 Thousand Cubic Feet Equivalent (Mcfe).
The Company’s Texas properties are situated in Eastland and Callahan Counties. The Texas properties consist of wells acquired in several transactions between 1991 and 2002 and through overriding royalty interests reserved in farm-out agreements in 1998 and 1999. These wells produce limited amounts of natural gas and oil condensate. The Company owns a 35% working interest in approximately 2,400 acres and a 49% working interest in approximately 8,500 acres in DeSoto and Caddo Parishes, Louisiana. Cubic’s net production for the fiscal year ended June 30, 2010 for all of the Company’s wells averaged approximately 2171 Mcf of natural gas per day, four barrels of oil per day and 105 gallons of natural gas liquids per day.