GST

[dan_s]

DALLAS, TX -- Cubic Energy, Inc. (OTCQB: CBNR) ("Cubic" or the "Company" or the “Buyer”)
announced today that it has closed and funded the previously announced acquisition of all of the East Texas
assets of Gastar Exploration, Texas, LP (“Gastar”), paying to Gastar a net purchase price cash balance of
$39,188,830.

GST now has a very strong balances sheet with over $120 million of cash.

[bobs]

I assume this really reduces the risk in the pdf yielding 9%. I noticed it can be called in less than a year at $25 and has been a great idea for parking cash reserves.

[dan_s]

Yes, the pfd is now rock solid. When they hosted our luncheon, the company said they did intend to eventually call the pfd at $25, so I would not pay more than that.

Dividends are paid monthly and they are tax deferred as long as the company has no "Earnings & Profits" for income tax purposes (not reported earnings but what is on their tax return).