UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549


                                   FORM 10-QSB

                [X] Quarterly Export under Section 13 or 15(d) of
                      The Securities Exchange Act of 1934

                  For the Quarterly Period Ended March 31, 2005

                          Commission File Number 0-9355

                               CUBIC ENERGY, INC.
             (Exact name of registrant as specified in its charter)

            Texas                                          87-0352095
(State or other jurisdiction                   (IRS Employer Identification No.)
      of incorporation)

                                 9870 Plano Road
                                Dallas, TX 75238
                    (Address of principal executive offices)

                                 (972) 686-0369
                (Issuer's telephone number, including area code)


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Exchange  Act during the  preceding 12
months (or for such shorter period that the registrant was required to file such
reports),  and (2) has been subject to such filing  requirements for the past 90
days.

                                 Yes [X] No [ ]

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date:

          Common Stock                    Outstanding at March 31, 2005
         --------------                   -----------------------------
         $.05 par value                             35,126,016

    Transitional Small Business Disclosure Format (Check one): Yes [ ] No [X]

<PAGE>

                               CUBIC ENERGY, INC.

                                TABLE OF CONTENTS

                         PART 1 - FINANCIAL INFORMATION

ITEM 1. Financial Statements

         Independent Accountant's Report.......................................1

         Condensed Balance Sheets
         As of March 31, 2005 (unaudited) and June 30, 2004..................2,3

         Condensed Statements of Operations, (unaudited)
         For the three months ended March 31, 2005 and 2004....................4

         Condensed Statements of Operations, (unaudited)
         For the nine months ended March 31, 2005 and 2004.....................5

         Condensed Statements of Cash Flows, (unaudited)
         For the nine months ended March 31, 2005 and 2004.....................6

         Notes to Condensed Financial Statements........................7,8,9,10

ITEM 2. Management's Discussion and Analysis..................................11

ITEM 3.  Control and Procedures...............................................11


                           PART II - OTHER INFORMATION

ITEM 1. Legal Proceedings.....................................................12

ITEM 6.  Exhibits ............................................................12


SIGNATURES....................................................................13




<PAGE>


                          PART I. FINANCIAL INFORMATION

                         INDEPENDENT ACCOUNTANTS' REPORT


The Stockholders and Board of Directors
Cubic Energy, Inc.


We have reviewed the accompanying  condensed balance sheet as of March 31, 2005,
and the related condensed  statements of operations,  and of cash flows of Cubic
Energy, Inc. for the three-month and nine-month periods ended March 31, 2005 and
2004.  These  financial  statements  are  the  responsibility  of the  Company's
management.

We conducted our reviews in accordance  with the standards of the Public Company
Accounting  Oversight  Board  (United  States).  A review of  interim  financial
information consists principally of applying analytical  procedures to financial
data and making  inquiries of persons  responsible  for financial and accounting
matters. It is substantially less in scope than an audit conducted in accordance
with the  standards  of the  Public  Company  Accounting  Oversight  Board,  the
objective  of which is the  expression  of an opinion  regarding  the  financial
statements taken as a whole. Accordingly, we do not express such an opinion.

Based on our reviews, we are not aware of any material modifications that should
be made to the  accompanying  financial  statements for them to be in conformity
with accounting principles generally accepted in the United States of America.

We have  previously  audited,  in  accordance  with the  standards of the Public
Company Accounting  Oversight Board (United States),  the balance sheet of Cubic
Energy,  Inc. as of June 30, 2004,  and the related  statements  of  operations,
stockholders'  equity and cash flows for the year then ended;  and in our report
dated  September  3,  2004,  we  expressed  an  unqualified   opinion  on  those
statements.




                                                    PHILIP VOGEL & CO. PC

                                                     /s/ Philip Vogel & Co. PC
                                                    ----------------------------

                                                    Certified Public Accountants

Dallas, Texas
May 16, 2005




                                       1
<PAGE>

ITEM 1. FINANCIAL STATEMENTS

                               CUBIC ENERGY, INC.
                            CONDENSED BALANCE SHEETS

                                     ASSETS

                                                (Unaudited)
                                              March 31, 2005   June 30, 2004
                                              --------------   --------------

Current assets:
  Cash and cash equivalents                   $      379,676   $      193,213
  Accounts receivable                                 39,756           80,180
    Prepaid Drilling Costs                           345,420                0
    Prepaid Expenses                                  19,762                0
                                              --------------   --------------
    Total current assets                      $      784,614   $      273,393
                                              --------------   --------------


Property and equipment (at cost):
  Oil and gas properties, full cost method:
    Proved properties (including wells and
    related equipment and facilities)         $    5,127,309   $    1,537,625
  Unproven Properties                                      0                0
  Office and other equipment                           4,872              910
                                              --------------   --------------
                                              $    5,132,181   $    1,538,535
Less accumulated depreciation, depletion
  and amortization                                 1,329,319        1,104,849
                                              --------------   --------------
                                              $    3,802,862   $      433,686
Other Assets:
    Deferred Loan Costs - Net                 $      140,444   $            0
                                              --------------   --------------


TOTAL ASSETS                                  $    4,727,920   $      707,079
                                              ==============   ==============


            See accompanying notes to condensed financial statements.


                                       2
<PAGE>

                               CUBIC ENERGY, INC.
                            CONDENSED BALANCE SHEETS

                      LIABILITIES AND STOCKHOLDERS' EQUITY

                                            (Unaudited)
                                          March 31, 2005    June 30, 2004
                                          --------------    --------------

Current liabilities:
  Accounts payable and accrued expenses   $       27,056    $      126,764
  Due to affiliates                               47,738             3,598
                                          --------------    --------------
Total current liabilities                 $       74,794    $      130,362
                                          --------------    --------------

Non-current liabilities:
  Deferred income taxes                   $            0    $            0
                                          --------------    --------------

Long-Term Liabilities
  Debentures Payable - Net of Discounts   $    1,593,173    $            0
                                          --------------    --------------

Commitments and contingencies

Stockholders' equity:

  Preferred stock - $.01 par value,
    authorized 10,000,000 shares,
    issued: none                          $            0    $            0

  Common stock - $.05 par value,
    Authorized 50,000,000 shares,
    issued 35,126,016 shares at
    March 31, 2005 and 31,451,829
    shares at June 30, 2004                    1,756,302         1,572,592

  Additional paid-in capital                  11,746,563         8,972,467

  Accumulated deficit                        (10,442,912)       (9,968,342)
                                          --------------    --------------

Stockholders' equity                      $    3,059,953    $      576,717
                                          --------------    --------------

                                          $    4,727,920    $      707,079
                                          ==============    ==============


            See accompanying notes to condensed financial statements.


                                       3
<PAGE>

                               CUBIC ENERGY, INC.
                       CONDENSED STATEMENTS OF OPERATIONS
                                   (Unaudited)

                                             For the Three     For the Three
                                              Months Ended      Months Ended
                                             March 31, 2005    March 31, 2004
                                             --------------    --------------

Revenue:
  Oil and gas sales                          $      126,449    $      114,734
                                             --------------    --------------

Total revenue                                $      126,449    $      114,734
                                             --------------    --------------

Costs and expenses:
  Oil and gas production, operating and
    development costs                        $       88,707    $       51,879
  Selling, general and
    administrative expenses                         115,272           114,807
  Depreciation, depletion and
    amortization                                    183,503            30,322
                                             --------------    --------------

Total costs and expenses                     $      387,482    $      197,008
                                             --------------    --------------

Operating income (loss)                      $     (261,033)   $      (82,274)
                                             --------------    --------------

Non-operating income (expense):
  Gain (loss) on sales of securities         $            0    $            0
  Other income                                            0                 0
  Interest expense                                  (68,405)                0
  Amortization of loan costs                         (7,234)                0
                                             --------------    --------------

Total non-operating income (expense)         $      (75,639)   $            0
                                             --------------    --------------

Income (loss) before taxes:                  $     (336,672)   $      (82,274)

Provision for (benefit of) income taxes                   0                 0
                                             --------------    --------------

Net income (loss)                            $     (336,672)   $      (82,274)
                                             ==============    ==============

Net gain (loss) per common share
  - basic and diluted                        $       (0.010)   $       (0.003)
                                             ==============    ==============

Weighted average common shares outstanding
  - basic and diluted                            34,319,736        31,383,697
                                             ==============    ==============


            See accompanying notes to condensed financial statements.


                                       4
<PAGE>

                               CUBIC ENERGY, INC.
                       CONDENSED STATEMENTS OF OPERATIONS
                                   (Unaudited)

                                              For the nine      For the nine
                                              Months Ended      Months Ended
                                             March 31, 2005    March 31, 2004
                                             --------------    --------------

Revenues:
  Oil and gas sales                          $      341,961    $      312,893
                                             --------------    --------------

Total revenues                               $      341,961    $      312,893
                                             --------------    --------------

Costs and expenses:
  Oil and gas production, operating and
    development costs                        $      195,209    $      123,597
  Selling, general and
    administrative expenses                         235,913           210,094
  Depreciation, depletion and
    amortization                                    224,471            89,164
                                             --------------    --------------

Total costs and expenses                     $      655,593    $      422,855
                                             --------------    --------------

Operating income (loss)                      $     (313,632)   $     (109,962)
                                             --------------    --------------

Non-operating income (expense):
  Gain (loss) on sales of securities         $            0    $            0
  Other income                                            0                 0
  Interest expense                                 (140,489)                0
  Amortization of loan costs                        (20,449)                0
                                             --------------    --------------

Total non-operating income (expense)         $     (160,938)   $            0
                                             --------------    --------------

Income (loss) before taxes:                  $     (474,570)   $     (109,962)

Provision for (benefit of) income taxes                   0                 0
                                             --------------    --------------

Net income (loss)                            $     (474,570)   $     (109,962)
                                             ==============    ==============

Net gain (loss) per common share
  - basic and diluted                        $       (0.015)   $       (0.004)
                                             ==============    ==============

Weighted average common shares outstanding
  - basic and diluted                            32,432,029        31,271,349
                                             ==============    ==============


            See accompanying notes to condensed financial statements.


                                       5
<PAGE>
<TABLE>
<CAPTION>

                               CUBIC ENERGY, INC.
                       CONDENSED STATEMENTS OF CASH FLOWS
                                   (Unaudited)

                                                      For the nine      For the nine
                                                      Months Ended      Months Ended
                                                     March 31, 2005    March 31, 2004
                                                     --------------    --------------
<S>                                                  <C>               <C>
Cash flows from operating activities:
Net income (loss)                                    $     (474,570)   $     (109,962)
Adjustments to reconcile net income (loss)
  to cash provided (used) by operating activities:
  Depreciation, depletion and amortization                  293,966            89,164
  Stock Grant Expense                                        59,288            93,050
  Stock Issued For Interest                                  91,289                 0
Net change in assets and liabilities:
  Increase (decrease) in accounts receivable                 40,424           (26,093)
  (Increase) decrease in prepaid expenses                         0                 0
  Increase (decrease) in loan from affiliate                 44,140              (178)
  Increase (decrease) in accounts payable and
    accrued liabilities                                     (99,708)           14,956
  Increase (decrease) in deferred taxes                           0                 0
                                                     --------------    --------------
Net cash provided (used) by operating activities     $      (45,171)   $       60,937
                                                     --------------    --------------


Cash flows from investing activities:
  Acquisition of oil & gas properties                $   (1,793,646)   $            0
  Advances on acquisition and development
    costs                                                  (345,420)                0
                                                     --------------    --------------
Net cash provided (used) by investing activities     $   (2,139,066)   $            0
                                                     --------------    --------------


Cash flows from financing activities:
  Issuance of convertible debt and warrants          $    2,635,000    $            0
  Loan costs incurred                                      (264,300)                0
  Changes in common stock                                         0                 0
  Paid in Capital                                                 0                 0
                                                     --------------    --------------
Net cash provided (used) by financing activities     $    2,370,700    $            0
                                                     --------------    --------------


Net increase (decrease) in cash and
    cash equivalents                                 $      186,463    $       60,937
                                                     --------------    --------------

Cash at beginning of period                                 193,213           117,450
                                                     --------------    --------------
Cash at end of period                                $      379,676    $      178,387
                                                     ==============    ==============
</TABLE>


            See accompanying notes to condensed financial statements


                                       6
<PAGE>

                               CUBIC ENERGY, INC.
                          NOTES TO FINANCIAL STATEMENTS
                              AS OF MARCH 31, 2005
                                   (Unaudited)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation:

The accounting policies followed by Cubic Energy, Inc., a Texas corporation (the
"Company" or "Cubic"),  are set forth in the Company's financial statements that
are a part of its June 30, 2004,  Form 10-KSB and should be read in  conjunction
with the financial statements contained herein.

The  financial  information  included  herein as of March 31, 2005,  and for the
three-month  and nine-month  periods ended March 31, 2005,  and 2004,  have been
presented  without an audit,  pursuant  to  accounting  principles  for  interim
financial  information  generally accepted in the United States of America,  and
the rules of the Securities and Exchange Commission.

The Company  believes that the  disclosures are adequate to make the information
presented not  misleading.  The information  presented  reflects all adjustments
(consisting solely of normal recurring  adjustments),  which are, in the opinion
of management, necessary for a fair statement of results for the periods.

Earnings per share:

The Company has adopted the  provisions  of Statement  of  Financial  Accounting
Standards  (SFAS)  No.  128,   Earnings  per  Share.   SFAS  No.  128  reporting
requirements  replace  primary and  fully-diluted  earnings per share (EPS) with
basic and diluted EPS. Basic EPS is calculated by dividing net income (available
to  common  stockholders)  by the  weighted  average  number  of  common  shares
outstanding  for the period.  Diluted EPS reflects the  potential  dilution that
could  occur  if  securities  or other  contracts  to issue  common  stock  were
exercised or converted into common stock.

Compensation, Including Stock Grants:

The following  compensation plan was adopted on March 30, 2005, with conditional
Grants  authorized on March 30, 2005 subject to Shareholder  approval.  On March
30, 2005, the  Compensation  Committee for Cubic voted and authorized,  and then
the Board Of  Directors  conditionally  approved,  all  subject  to  shareholder
approval,  these grants, in addition to all other grants previously issued: (i).
150,000  un-registered shares to Calvin Wallen III, (ii). 100,000  un-registered
shares to Jon Stuart Ross, (iii). 70,000 un-registered shares to Rick Sepulvado,
and (iv). 30,000  un-registered  shares to Lindsey Tate Renteria.  Further,  the
Compensation  Committee  for Cubic voted and  authorized,  and then the Board Of
Directors conditionally approved, all subject to shareholder approval,  Director
and  Committee  compensation  as  follows,  in  addition  to  all  other  grants
previously  issued:  (a). $1,000 cash  compensation per Director for each actual
meeting held, (b).  reimbursement  for reasonable and necessary  expenses,  (c).
grants of 25,000 un-registered  shares for yearly Director service,  (d). grants


                                       7
<PAGE>

of 8,000  un-registered  shares for service on the Compensation  Committee,  and
(e).  grants of 14,000  un-registered  shares for  service  for  upcoming  audit
committee, with the chairman to receive grants of 20,000 un-registered shares.

Further,  as of January 1, 2005,  as voted and  authorized  by the  Compensation
Committee,  and approved by the Board Of Directors,  cash  compensation has been
paid as follows:  (i).  Calvin  Wallen III,  $6,500.00  per month,  and (b). Jon
Stuart Ross, $5,000.00 per month.

The  Company  has  not  recorded  any  compensation  cost  with  respect  to the
contingent  issuance of stock  under the  above-referenced  plan  because of the
uncertainty involved in obtaining shareholder  approval.  Compensation cost will
be  recognized  once the plan has been  formally  approved  and the  shares  are
issued.

Convertible debt and warrants

On October 6, 2004,  Cubic closed a  Securities  Purchase  Agreement  and issued
$2,635,000 in principal amount of 7% Senior Secured  Convertible  Debentures due
September 30, 2009 (the "Debentures"),  to a group of institutional and high net
worth  investors.  The Debentures are secured by the collateral set forth in the
Deed of Trust,  Security Agreement,  Assignment of Production and Fixture Filing
attached  to Form 8K filed  October,  12,  2004.  The  Debentures  pay an annual
interest rate of 7% on a quarterly basis and are convertible  into shares of the
Company's  common stock at a price of $.50 per share. The Company has the option
to pay the  interest on the  Debentures  in common  stock.  The  investors  also
received  warrants to purchase an  additional  2,635,000  shares of common stock
with an exercise  price of $1.00 per share.  During the three months ended March
31, 2005,  $700,000 of Debentures  were converted to 1,400,000  shares of stock.
40,897  shares of stock were  issued in lieu of cash to pay  interest of $44,752
for the three months ended March 31, 2005.

The Company has allocated  the proceeds  from the issuance of the  Debentures to
the warrants and the  Debentures  based on their  relative fair market values at
the date of  issuance.  The value  assigned to the warrants of $510,961 has been
recorded as an increase in additional paid in capital. The assignment of a value
to the warrants  results in a loan discount  being recorded for the same amount.
The  discount  is  being  amortized  over the  original  five  year  term of the
Debentures as additional  interest  expense.  Amortization  for the three months
ended March 31, 2005, was $23,496.

Cubic  incurred  loan costs of $264,300 on the  issuance of the  Debentures  and
Warrants.   The  amount  allocable  to  the  Debentures  of  $213,049  has  been
capitalized and is being amortized over the term of the Debentures. Amortization
of loan costs was $9,797 for the three months ended March 31, 2005.

The proceeds of the Debentures  have primarily been used for the  acquisition of
interests in oil and gas properties.  Through  December 31, 2004, Cubic incurred
acquisition  and  development  costs of $1,418,996  on properties  with unproved
reserves.  Subsequent  to December 31,  2004,  the Company  determined  that the
reserves  acquired  in this  transaction  have  been  proved.  Accordingly,  the
associated  acquisition  and development  costs have been  transferred to proved
properties  and depletion  has been  computed in  accordance  with the full cost
method.  In addition,  prepaid drilling costs, net of allocable  expenses,  have
been advanced in the amount of $345,420.


                                       8
<PAGE>
<TABLE>
<CAPTION>

Material Transaction

On or about January 11, 2005, The Company issued  1,531,661 shares of its common
stock, $0.05 par value per share, to Caravel Resources Energy Fund 2003-II, L.P.
(the  "Partnership")  in exchange  for a  0.1914575033  working  interest in the
Kraemer  24-1 Well,  Desoto  Parish,  Township 14 N, Range 15 W, Section 24 (the
"Well").  The Company  also issued  468,339  shares of Common Stock to Calvin A.
Wallen III, the Company's  Chairman of the Board,  President and Chief Executive
Officer,  in exchange  for a  0.0585424967  working  interest  in the Well.  The
Company  Common Stock closed at a price of $0.90 on January 10, 2005. The shares
of Common Stock were issued by the Company in reliance  upon an  exemption  from
registration  set  forth in  Section  4(2) of the  Securities  Act of  1933,  as
amended,  which  exempts  transactions  by an  issuer  not  involving  a  public
offering.



Pro forma information related to stock options:

The Company accounts for its stock-based  employee  compensation plans under the
recognition  and  measurement  principles of APB Opinion No. 25,  Accounting for
Stock Issued to Employees, and related interpretations.  No stock based employee
compensation cost is reflected in net income, as all options granted under those
plans had an  exercise  price at least  equal to the  market  of the  underlying
common  stock on the date of the grant.  The  following  table  illustrates  the
effect on net income and  earnings per share if the company had applied the fair
value  recognition   provisions  of  FASB  Statement  No.  123,  Accounting  for
Stock-Based Compensation, to stock-based employee compensation.


                                                         3 Months Ended            9 Months Ended
                                                            March 31,                 March 31,
                                                        2005         2004         2005         2004
                                                     ---------    ---------    ---------    ---------
<S>                                                  <C>          <C>          <C>          <C>
Net earnings (loss), as reported                     $(336,672)   $ (82,274)   $(474,570)   $(109,962)


Deduct: Total stock-based employee compensation
  expense determined under fair value based method
  for all awards, net of tax effect                     (4,375)      (8,866)     (13,125)     (26,598)
                                                     ---------    ---------    ---------    ---------


Pro forma net income (loss)                          $(341,045)   $ (91,140)   $(487,695)   $(136,560)
                                                     ---------    ---------    ---------    ---------

Earnings (loss) per common share:
   Basic - as reported                               $    (.01)   $    --      $    (.01)   $    --
   Basic - pro forma                                 $    (.01)   $    --      $    (.02)   $    --

   Diluted - as reported                             $     n/a    $     n/a    $     n/a    $     n/a
   Diluted - pro forma                               $     n/a    $     n/a    $     n/a    $     n/a
</TABLE>


SAFE HARBOR  STATEMENTS UNDER THE PRIVATE  SECURITIES  LITIGATION  REFORM ACT OF
1995:

This report contains "forward-looking  statements" within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended.  Such forward-looking  statements are based on


                                       9
<PAGE>

current expectations that involve a number of risks and uncertainties that could
cause  actual  results to differ  materially  from the results  discussed in the
forward-looking statements. Generally,  forward-looking statements include words
or phrases  such as  "management  anticipates,"  "the  Company  believes,"  "the
Company   anticipates,"   and  words  and   phrases  of  similar   impact.   The
forward-looking  statements  are made pursuant to safe harbor  provisions of the
Private Securities Litigation's Reform Act of 1995.

The  factors  that could  cause  actual  results to differ  materially  from the
forward-looking  statements  include,  but  are not  limited  to:  (i)  industry
conditions  and  competition  (ii) the cyclical  nature of the  industry,  (iii)
domestic and  worldwide  supplies and demand for oil and gas,  (iv)  operational
risks and insurance, (v) environmental liabilities which may arise in the future
which are not covered by insurance or indemnity,  (vi) the impact of current and
future laws and government  regulations,  as well as repeal or  modification  of
same,  affecting  the oil and gas  industry  and  the  Company's  operations  in
particular,  (vii) production  levels and other activities of OPEC and other oil
and gas  producers,  and the impact that the above factors and other events have
on the current and  expected  future  pricing of oil and natural gas, and (viii)
the risks described from time to time in the Company's reports to the Securities
and Exchange  Commission,  including the Company's Annual Report Form 10-KSB for
the fiscal year ended June 30, 2004.











                                       10
<PAGE>

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS

Results of Operations:

Three Months Ended March 31, 2005 Compared To
Three Months Ended March 31, 2004
Gross Revenues for the three months ended March 31, 2005 increased from $114,734
at March 31, 2004 to $126,449 at March 31, 2005 due to increased gas production.

Oil and Gas Production,  Operating and Development  Costs increased from $51,879
(45% of oil and gas  sales) at March  31,  2004 to  $88,707  (70% of oil and gas
sales) at March 31, 2004 due to more wells being brought online.

Operating Income decreased from a loss of $82,274 at March 31, 2004 to a loss of
$336,672 at March 31, 2005 due to increased  general & administrative  costs and
more wells being brought online.

Nine Months Ended March 31, 2005 Compared To
Nine Months Ended March 31, 2004
Gross  Revenues for the nine months ended March 31, 2005 increased from $312,893
at March 31, 2004 to $341,961 at March 31, 2005 due to higher natural gas prices
and increased gas production.

Oil and Gas Production,  Operating and Development Costs increased from $123,597
(40% of oil and gas  sales) at March 31,  2004 to  $195,209  (57% of oil and gas
sales) at March 31, 2005 due to more wells being brought online.

Operating  Income  decreased from a loss of $109,962 at March 31, 2004 to a loss
of $474,570 at March 31, 2005 due to more wells being brought online.

Liquidity and Capital Resources:
Long-term  debt of the company is currently  $1,593,000,  and was  $1,593,000 on
March 31, 2005, under the convertible debt financing  obtained by the Company as
mentioned in the preceding paragraphs.


ITEM 3. CONTROLS AND PROCEDURES

Our  principal  executive and financial  officer has  concluded,  based on their
evaluation  as of a date within 90 days  before the filing of this Form  10-QSB,
that our disclosure  controls and procedures under Rule 13a-14 of the Securities
Exchange Act of 1934 are effective to ensure that information we are required to
disclose in the reports we file or submit  under the  Exchange  Act is recorded,
processed,  summarized  and reported  within the time  periods  specified in the
SEC's rules and forms,  and include  controls and procedures  designed to ensure
that  information we are required to disclose in such reports is accumulated and
communicated  to  management,  including our  principle  executive and financial
officers,   as  appropriate  to  allow  timely  decisions   regarding   required
disclosure.  Subsequent to our evaluation,  there were no significant changes in
internal  controls  or other  factors  that  could  significantly  affect  these
internal controls.




                                       11
<PAGE>

                           PART II - OTHER INFORMATION

ITEM 1. Legal Proceedings

ITEM 1. Legal Proceedings

The Company filed suit in the 29th Judicial District Court in Palo Pinto County,
Texas, styled "Roseland Oil and Gas, Inc. v. William Vandever, et al.", bringing
suit against  Clifford  Kees,  William  Vandever,  and other  persons  seeking a
judicial  determination  that all  grants of  preferential  rights in the Reagan
Sections  11 and 12 are void,  This  lawsuit  was filed on April 26,  1999.  All
Section 11 preferential  rights were returned to the Company on or about January
2002. However, Clifford Kees was to retain his 1% overriding royalty interest in
these Reagan Lease Sections.

Clifford  Kees then moved to trial against on the claim of attorney fees owed to
him for the  prosecution  of this lawsuit.  The trial was heard on September 25,
2002,  with Kees requesting in excess of $200,000.00 in attorney fees and costs.
In June of 2003 the Court  re-opened  the trial as to attorney fees and costs to
allow Kees to put on  additional  evidence,  and such trial was convened on June
19, 2003.

On July 15, 2003,  The Court  entered a Judgment in favor of Kees and as against
the Company for  approximately  $112,000.00.  The Company  believed the Judgment
should not stand and appealed the Judgment. On or about, September 17, 2004, the
Eastland Court Of Appeals  issued its ruling,  modifying the amounts owed by the
Company under the Judgment to $59,000.00,  plus  interest.  The Company has been
denied a Re-Hearing as to clarification and a further reduction of the Judgment.
The Company  filed a Petition For Review with the Texas  Supreme  Court that was
Denied on or about January 21, 2005.

The Company had put into the  registry of The Court a cash Bond in the amount of
$92,500. On or about March 14, 2005, the Trial Court issued a final ruling which
ordered for Cubic to pay out to Kees $83,725.78 of the monies in the registry of
The Court, with $8,774.22 of the monies in the registry of The Court refunded to
Cubic.


ITEM 6. Exhibits and Reports
        (a).     Exhibits
                 31.1     Rule 13a-14(a)/15d-14(a) Certification
                 32.1     Section 1350 Certification
        (b).     Reports
                 None











                                       12
<PAGE>

                                   SIGNATURES

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.


                                                      CUBIC ENERGY, INC.
                                                      (Registrant)


Date: May 16, 2005                                     /s/ Calvin A. Wallen, III
                                                      --------------------------
                                                      Calvin A. Wallen, III, CEO


Date: May 16, 2005                                     /s/ Jon Stuart Ross
                                                      --------------------------
                                                      Jon Stuart Ross, CFO