Cubic Energy Receives Arbitration Ruling

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Cubic Energy (NYSE: QBC) announces that it received a ruling and awardfavorable to the Company with respect to the dispute with EXCO OperatingCompany, LP and BG US Production Company LLC as to drillingcredits pertaining to the Company's Northwest Louisiana acreage. This rulingis subject to confirmation by the Dallas County District Court where it isanticipated that it will be challenged by EXCO and BG. This arbitration andaward are subject to a Confidentiality Order.

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