_
                                  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 December 31, 2003

                          Commission File Number 0-9355

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

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


                                 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 December 31, 2003
          --------------                    --------------------------------
          $.05 par value                             31,296,829

    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 December 31, 2003 (unaudited) and June 30, 2003...............2,3

         Condensed Statements of Operations, (unaudited)
         For the three months ended December 31, 2003 and 2002.................4

         Condensed Statements of Operations, (unaudited)
         For the six months ended December 31, 2003 and 2002...................5

         Condensed Statements of Cash Flows, (unaudited)
         For the six months ended December 31, 2003 and 2002...................6

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

ITEM 2. Management's Discussion and Analysis..................................10

ITEM 3.  Control and Procedures...............................................10


                           PART II - OTHER INFORMATION

ITEM 1. Legal Proceedings.....................................................11

ITEM 6.  Exhibits and Reports on Form 8-K.....................................11


SIGNATURES....................................................................12




<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 December 31,
2003, and the related condensed statements of income, and of cash flows of Cubic
Energy,  Inc. for the three-month and six-month  periods ended December 31, 2003
and 2002.  These financial  statements are the  responsibility  of the Company's
management.

We  conducted  our  reviews in  accordance  with  standards  established  by the
American  Institute  of  Certified  Public  Accountants.  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 auditing  standards  generally  accepted in the United States of
America,  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 auditing  standards  generally
accepted in the United  States of America,  the balance  sheet of Cubic  Energy,
Inc.  as  of  June  30,  2003,   and  the  related   statements  of  operations,
stockholders'  equity and cash flows for the year then ended;  and in our report
dated  September  16,  2003,  we  expressed  an  unqualified  opinion  on  those
statements.




                                                    PHILIP VOGEL & CO. PC

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

                                                    Certified Public Accountants


Dallas, Texas
February 4, 2004




                                       1
<PAGE>
<TABLE>
<CAPTION>

ITEM 1. FINANCIAL STATEMENTS

                               CUBIC ENERGY, INC.
                            CONDENSED BALANCE SHEETS

                                     ASSETS

                                                    (Unaudited)
                                                 December 31, 2003     June 30, 2003
                                                 -----------------   -----------------
<S>                                              <C>                 <C>
Current assets:
  Cash and cash equivalents                      $         166,402   $         117,450
  Accounts receivable                                       71,234              58,130
                                                 -----------------   -----------------
Total current assets                             $         237,636   $         175,580


Property and equipment (at cost):
  Oil and gas properties, full cost method:
    Proved properties (including wells and
    related equipment and facilities)            $       1,537,625   $       1,537,625
  Office and other equipment                                   910                 910
                                                 -----------------   -----------------
                                                 $       1,538,535   $       1,538,535
Less accumulated depreciation, depletion
  and amortization                                       1,058,956           1,000,114
                                                 -----------------   -----------------
                                                           479,579             538,421

TOTAL ASSETS                                     $         717,215   $         714,001
                                                 =================   =================
</TABLE>
































            See accompanying notes to condensed financial statements.

                                       2
<PAGE>

                               CUBIC ENERGY, INC.
                            CONDENSED BALANCE SHEETS

                      LIABILITIES AND STOCKHOLDERS' EQUITY

                                            (Unaudited)
                                         December 31, 2003      June 30, 2003
                                         -----------------    -----------------

Current liabilities:
  Accounts payable and accrued expenses  $         121,372    $         116,039
  Due to affiliates                                  2,448                  179
                                         -----------------    -----------------
Total current liabilities                $         123,820    $         116,218

Non-current liabilities:
  Deferred income taxes                                  0                    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 31,296,829 shares at
    December 31, 2003 and 31,180,329
    shares at June 30, 2003                      1,564,842            1,559,017

  Additional paid-in capital                     8,910,468            8,892,992

  Accumulated deficit                           (9,881,915)          (9,854,226)
                                         -----------------    -----------------

Stockholders' equity                               593,395              597,783
                                         -----------------    -----------------

                                         $         717,215    $         714,001
                                         =================    =================



















            See accompanying notes to condensed financial statements.

                                       3
<PAGE>
<TABLE>
<CAPTION>

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

                                                 For the Three         For the Three
                                                  Months Ended         Months Ended
                                               December 31, 2003    December 31, 2002
                                               -----------------    -----------------
<S>                                            <C>                  <C>
Revenue:
  Oil and gas sales                            $          93,736    $          79,141
                                               -----------------    -----------------

Total revenue                                  $          93,736    $          79,141
                                               -----------------    -----------------

Costs and expenses:
  Oil and gas production, operating and
    development costs                          $          36,049    $          52,449
  Selling, general and
    administrative expenses                               56,932               85,034
  Depreciation, depletion and
    amortization                                          29,606               20,325
                                               -----------------    -----------------

Total costs and expenses                       $         122,587    $         157,808
                                               -----------------    -----------------

Operating income (loss)                        $         (28,851)   $         (78,667)
                                               -----------------    -----------------

Non-operating income (expense):
  Gain (loss) on sales of securities           $               0    $               0
  Other income                                                 0                    0
  Interest expense                                             0                    0
  Interest income                                              0                    0
                                               -----------------    -----------------

Total non-operating income (expense)           $               0    $               0
                                               -----------------    -----------------

Income (loss) before taxes:                    $         (28,851)   $         (78,667)

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

Net income (loss)                              $         (28,851)   $         (78,667)
                                               =================    =================

Net gain (loss) per common share
- basic and diluted                            $          (0.001)   $          (0.003)
                                               =================    =================

Weighted average common shares outstanding
- basic and diluted                                   31,251,242           31,180,329
                                               =================    =================
</TABLE>











            See accompanying notes to condensed financial statements.

                                       4
<PAGE>
<TABLE>
<CAPTION>

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

                                                  For the six         For the six
                                                 Months Ended         Months Ended
                                              December 31, 2003    December 31, 2002
                                              -----------------    -----------------
<S>                                           <C>                  <C>
Revenues:
  Oil and gas sales                           $         198,158    $         153,743
                                              -----------------    -----------------

Total revenues                                $         198,158    $         153,743
                                              -----------------    -----------------

Costs and expenses:
  Oil and gas production, operating and
  development costs                           $          71,717    $          86,993
  Selling, general and
  administrative expenses                                95,287              133,960
  Depreciation, depletion and
  amortization                                           58,842               42,871
                                              -----------------    -----------------

Total costs and expenses                      $         225,846    $         263,824
                                              -----------------    -----------------

Operating income (loss)                       $         (27,688)   $        (110,081)
                                              -----------------    -----------------

Non-operating income (expense):
  Gain (loss) on sales of securities          $               0    $               0
  Other income                                                0                    0
  Interest expense                                            0                    0
  Interest income                                             0                    0
                                              -----------------    -----------------

Total non-operating income (expense)          $               0    $               0
                                              -----------------    -----------------

Income (loss) before taxes:                   $         (27,688)   $        (110,081)

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

Net income (loss)                             $         (27,688)   $        (110,081)
                                              =================    =================

Net gain (loss) per common share
- basic and diluted                           $          (0.001)   $          (0.004)
                                              =================    =================

Weighted average common shares outstanding
- basic and diluted                                  31,215,786           31,180,329
                                              =================    =================
</TABLE>











            See accompanying notes to condensed financial statements.

                                       5
<PAGE>
<TABLE>
<CAPTION>

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

                                                        For the six          For the six
                                                        Months Ended         Months Ended
                                                     December 31, 2003    December 31, 2002
                                                     -----------------    -----------------
<S>                                                  <C>                  <C>
Cash flows from operating activities:
Net income (loss)                                    $         (27,688)   $        (110,081)
Adjustments to reconcile net income (loss)
to cash provided (used) by operating activities:
  Depreciation, depletion and amortization                      58,842               42,871
Net change in assets and liabilities:
  (Increase) decrease in accounts receivable                   (13,104)              (9,749)
  Increase (decrease) in loan from affiliate                     2,269               (8,033)
  Increase (decrease) in accounts payable and
    Accrued liabilities                                          5,333              (21,442)
  Increase (decrease) in deferred taxes                              0                    0
                                                     -----------------    -----------------
Net cash provided (used) by operating activities     $          25,652    $        (106,434)
                                                     -----------------    -----------------


Cash flows from investing activities:
Acquisition of oil & gas properties                  $               0    $               0
                                                     -----------------    -----------------
Net cash provided (used) by investing activities     $               0    $               0
                                                     -----------------    -----------------


Cash flows from financing activities:
Affiliate loan                                       $               0    $               0
Changes in common stock                              $           5,825    $               0
Paid in Capital                                      $          17,475    $               0
                                                     -----------------    -----------------
Net cash provided (used) by financing activities     $          23,300    $               0
                                                     -----------------    -----------------


Net increase (decrease) in cash and
    cash equivalents                                 $          48,952    $        (106,434)
                                                     -----------------    -----------------

Cash at beginning of period                                    117,450              169,334
                                                     -----------------    -----------------

Cash at end of period                                $         166,402    $          62,900
                                                     =================    =================

</TABLE>










            See accompanying notes to condensed financial statements

                                       6
<PAGE>

                               CUBIC ENERGY, INC.
                          NOTES TO FINANCIAL STATEMENTS
                             AS OF DECEMBER 31, 2003
                                   (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, 2003, Form 10-KSB and should be read in conjunction
with the financial statements contained herein.

The financial  information  included herein as of December 31, 2003, and for the
three-month  and six-month  periods ended December 31, 2003, and 2002, 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.

Stock grants:

On September 12, 2003, the Directors of Cubic tentatively approved of a Director
and Officer compensation plan as follows: (i.) Directors of record as of June 1,
2003 would receive  24,000  restricted  Cubic common shares  (16,000  shares per
year,  multiplied  by  1.5  years)  for  years  of  prior  service,   (ii.)  the
President/CEO  of Cubic would  receive  45,000  restricted  Cubic common  shares
(30,000  share per year,  multiplied  by 1.5 years) for years of prior  service,
(iii.) the  Secretary  of Cubic would  receive  22,500  restricted  Cubic common
shares  (15,000  shares per year,  multiplied  by 1.5 years) for prior  years of
service,  (iv.) going forward,  Directors would receive 16,000  restricted Cubic
common shares per year of service,  (v.) going forward,  the President/CEO would
receive 30,000  restricted Cubic common shares per year of service,  (vi.) going
forward,  the Secretary would receive 15,000  restricted Cubic common shares per
year of service,  (vii.) Audit Committee members would receive 10,000 restricted
Cubic common shares per audit,  and, (viii.) any Compensation  Committee member,
should one be formed,  would  receive 3,000  restricted  Cubic common shares per
year of service.



                                       7
<PAGE>
<TABLE>
<CAPTION>

On November 5, 2003, Cubic issued 116,500 common shares of stock to its Officers
and Directors  pursuant to this plan.  Based on a then market price of $0.20 per
share,  Cubic  recorded a  compensation  expense of  $23,300;  which  expense is
recorded  in  the  above  financial   statements  as  a  selling,   general  and
administrative expense.

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                6 Months Ended
                                                             December 31,                  December 31,
                                                         2003           2002           2003           2002
                                                     -----------    -----------    -----------    -----------
<S>                                                  <C>            <C>            <C>            <C>
Net earnings (loss), as reported                     $   (28,851)   $   (78,667)   $   (27,688)   $  (110,081)


Deduct: Total stock-based employee compensation
  expense determined under fair value based method
  for all awards, net of tax effect                       (8,866)       (13,691)       (17,732)       (27,382)
                                                     -----------    -----------    -----------    -----------



Pro forma net income (loss)                          $   (37,717)   $   (92,358)   $   (45,420)   $  (137,463)
                                                     ===========    ===========    ===========    ===========



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

  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
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)



                                       8
<PAGE>

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, 2003.






























                                       9
<PAGE>

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS

Results of Operations:

Three Months Ended December 31, 2003 Compared To
Three Months Ended December 31, 2002
Gross  Revenues  for the three months ended  December  31, 2003  increased  from
$79,141 at  December  31,  2002 to $93,736 at  December  31,  2003 due to higher
natural gas prices.

Oil and Gas Production,  Operating and Development  Costs decreased from $52,449
(66% of oil and gas sales) at December  31, 2002 to $36,049  (38% of oil and gas
sales) at December 31, 2003.

Operating Income increased from a loss of $78,667 at December 31, 2002 to a loss
of $28,851 at December 31, 2003 due to higher natural gas prices,  reduced lease
operating expense, and reduced general & administrative costs.

Six Months Ended December 31, 2003 Compared To
Six Months Ended December 31, 2002
Gross  Revenues  for the six months  ended  December  31,  2003  increased  from
$153,743  at December  31,  2002 to $198,158 at December  31, 2003 due to higher
natural gas prices.

Oil and Gas Production,  Operating and Development  Costs decreased from $86,993
(57% of oil and gas sales) at December  31, 2002 to $71,717  (36% of oil and gas
sales) at December 31, 2003.

Operating  Income  increased  from a loss of $110,081 at December  31, 2002 to a
loss of $27,688 at December 31, 2003 due to higher  natural gas prices,  reduced
lease operating expense, and reduced general & administrative costs.

Liquidity and Capital Resources:
Long-term debt of the company is currently zero.

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.









                                       10
<PAGE>

                           PART II - OTHER INFORMATION

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 against the
Company for approximately $112,000.00.  The Company believes the Judgment should
not stand and is in process  of  appealing  the  Judgment.  Should the  Judgment
stand,  it could  have a material  adverse  effect on the cash  position  of the
Company.


ITEM 6. Exhibits and Reports on Form 8-K
         (a).     Exhibits
                  31.1     Rule 13a-14(a)/15d-14(a) Certification
                  32.1     Section 1350 Certification
         (b).     Reports On Form 8-K
                  None

























                                       11
<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: February 6, 2004                        /s/ Calvin A. Wallen, III
                                             -----------------------------------
                                             Calvin A. Wallen, III, President
                                             (Principal Executive, Financial and
                                             Accounting Officer)





































                                       12