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


                                   FORM 10-QSB

(Mark One)

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

                For the Quarterly Period Ended September 30, 2001

                                       Or

[ ]    Transition  Report  Pursuant  to  Section  13  or 15(d) of The Securities
       Exchange Act of 1934

            For the Transition period from ___________ to ___________


                          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.)

                             1720 Northwest Highway
                                    Suite 320
                                Garland, TX 75041

                    (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, $.05 par Value - 29,989,616 shares as of September 30, 2001

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                                                3

Condensed Balance Sheets
As of September 30, 2001, (unaudited) and June 30, 2001                     4, 5

Condensed Statement of Operations, unaudited
For the three months ended September 30, 2001 and 2000 restated                6

Condensed Statements of Cash Flows, unaudited
For the three months ended September 30, 2001 and 2000 restated                7


Notes to Condensed Financial Statements                                        8


ITEM 2.  Management's Discussion and Analysis                          9, 10, 11



                           PART II - Other Information

ITEM 1.  Legal Proceedings                                                    11

ITEM 6. Exhibits and Reports on 8K                                            12

SIGNATURES                                                                    12



                                       2
<PAGE>

                         INDEPENDENT ACCOUNTANTS' REPORT





The stockholders and Board of Directors
Cubic Energy, Inc.


We have reviewed the  accompanying  condensed  balance sheet as of September 30,
2001, and the related condensed statements of income, and of cash flows of Cubic
Energy,  Inc. for the three month  periods  ended  September  30, 2001 and 2000.
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,  2001,   and  the  related   statements  of  operations,
stockholders'  equity and cash flows for the year then ended;  and in our report
dated  September  24,  2001,  we  expressed  an  unqualified  opinion  on  those
statements.




                                                   PHILIP VOGEL & CO. PC

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


                                                   Certified Public Accountants


Dallas, Texas
November 8, 2001


                                       3
<PAGE>

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS


                               CUBIC ENERGY, INC.

                            CONDENSED BALANCE SHEETS


                                     ASSETS

                                           (Unaudited)
                                        September 30, 2001       June 30, 2001
                                        ------------------    ------------------
Current Assets:
 Cash and cash equivalents              $           97,427    $           85,208
 Accounts receivable                                11,335                38,816
                                        ------------------    ------------------

    Current assets                                 108,762               124,024
                                        ------------------    ------------------

Property and equipment, at cost
  Oil and gas properties                         7,210,335             7,210,335
  Office and other equipment                           910                   910
                                        ------------------    ------------------

    Total property and equipment                 7,211,245             7,211,245

  Less accumulated depreciation,
   depletion and amortization                      588,101               562,964
                                        ------------------    ------------------

    Net property and equipment                   6,623,144             6,648,281
                                        ------------------    ------------------


    TOTAL ASSETS                        $        6,731,906    $        6,772,305
                                        ==================    ==================






See independent accountants' report.
See accompanying notes to condensed financial statements.

                                       4
<PAGE>
<TABLE>
<CAPTION>

                               CUBIC ENERGY, INC.

                            CONDENSED BALANCE SHEETS


                        LIABILITIES & STOCKHOLDERS EQUITY


                                                              (Unaudited)
                                                          September 30, 2001       June 30, 2001
                                                          ------------------    -------------------
<S>                                                       <C>                   <C>

Current Liabilities:
  Accounts payable                                        $           15,680    $            10,509
  Due to affiliates                                                  791,466                790,098
                                                          ------------------    -------------------

         Total current liabilities                                   807,146                800,607
                                                          ------------------    -------------------

Noncurrent liabilities:
  Deferred income taxes                                              464,700                471,800
                                                          ------------------    -------------------

Stockholders' equity:
  Preferred stock - $.01 par value, authorized
    10,000,000 shares, issued none                                      --                     --
  Common  stock, - $.05 par value, authorized
    50,000,000 shares, issued 29,989,614 shares
    at September 30, 2001, and June 30, 2001
  Additional paid in capital                                       1,499,481              1,499,481
  Accumulated deficit                                              7,867,389              7,867,389
                                                                  (3,906,810)            (3,866,972)
                                                          ------------------     -------------------

         Total stockholders' equity                                5,460,060              5,499,898
                                                          ------------------    -------------------


         TOTAL LIABILITIES AND
         STOCKHOLDERS' EQUITY                             $        6,731,906    $         6,772,305
                                                          ==================    ===================

</TABLE>





See independent accountants' report.
See accompanying notes to condensed financial statements.

                                       5
<PAGE>
<TABLE>
<CAPTION>

                               CUBIC ENERGY, INC.

                       CONDENSED STATEMENTS OF OPERATIONS
                                   (Unaudited)


                                                                            (Restated)
                                                    For the Three         For the Three
                                                     Months Ended          Months Ended
                                                  September 30, 2001    September 30, 2000
                                                  ------------------    -----------------
<S>                                               <C>                   <C>
Revenue:
   Oil and gas sales                              $           49,958    $         103,426
   Preferred return                                                0              128,960
                                                  ------------------    -----------------

          Total revenues                                      49,958              232,386
                                                  ------------------    -----------------

Costs and expenses:
   Oil and gas production, operating
      and development costs                                   45,339               43,184
   Selling, general and administrative expenses               26,420               29,314
   Depreciation, depletion and amortization                   25,137               25,973
                                                  ------------------    -----------------

            Total costs and expenses                          96,896               98,471
                                                  ------------------    -----------------

Operating income (loss)                                      (46,938)             133,915
                                                  ------------------    -----------------

Non-operating income (expense)                                     0                    0
                                                  ------------------    -----------------

Income (loss) before income taxes                            (46,938)             133,915

Provision for (benefit of) income taxes                       (7,100)                   0
                                                  ------------------    -----------------

Net income (loss)                                 $          (39,838)             133,915
                                                  ==================    =================



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

Weighted average common shares outstanding -
   basic and diluted                                      29,989,614           30,058,202
                                                  ==================    =================

</TABLE>




See independent accountants' report.
See accompanying notes to condensed financial statements.

                                       6
<PAGE>
<TABLE>
<CAPTION>

                               CUBIC ENERGY, INC.

                       CONDENSED STATEMENTS OF CASH FLOWS
                                   (Unaudited)

                                                                                   (Restated)
                                                           For the Three         For the Three
                                                            Months Ended          Months Ended
                                                         September 30, 2001    September 30, 2000
                                                         ------------------    ------------------
<S>                                                      <C>                   <C>

Cash flows from operating activities:
   Net income (loss)                                     $          (39,838)   $          133,915
   Adjustments to reconcile net income (loss)
      to cash provided (used) by operating activities:
      Depreciation, depletion and amortization                       25,137                25,973
   Net change in assets and liabilities:
      (Increase) decrease in accounts receivable                     27,481               (36,159)
      (Increase) decrease in other assets                                 0                41,764
      Increase (decrease) in loan from affiliate                      1,368                (8,271)
      Increase (decrease) in accounts payable and
         accrued liabilities                                          5,171                  --
      Increase (decrease) in deferred taxes                          (7,100)                 --
                                                         ------------------    ------------------

Net cash provided (used) by operating activities                     12,219               157,222
                                                         ------------------    ------------------

Cash flows from investing activities:
   Acquisition of oil and gas properties                                  0               (10,867)
                                                         ------------------    ------------------

Net cash provided (used) by investing activities                          0               (10,867)
                                                         ------------------    ------------------


Cash flows from financing activities:
   Changes in paid in capital                                             0              (146,208)
                                                         ------------------    ------------------

Net cash provided (used) by investing activities                          0              (146,208)
                                                         ------------------    ------------------
Net increase (decrease) in cash and cash equivalents     $           12,219    $              147

Cash beginning of period                                             85,208                   931
                                                         ------------------    ------------------

Cash at end of period                                    $           97,427    $            1,078
                                                         ==================    ==================

</TABLE>





See independent accountants' report.
See accompanying notes to condensed financial statements.

                                       7
<PAGE>

                               CUBIC ENERGY, INC.

                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                                   (Unaudited)



(1)      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, 2001, Form 10KSB
         and should be read in conjunction with the financial statements for the
         three months ended September 30, 2001, contained herein.

         The financial information included herein as of September 30, 2001, and
         for the  three-month  periods ended  September 30, 2001, and 2000, 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 period.

(2)      Restatement of prior financial statements:

         On  April  27,  2001,  the  Company  completed  a  nontaxable  exchange
         transaction  whereby  it  exchanged  shares of stock for the  ownership
         interests of various entities engaged in the production of oil and gas.
         This  transaction was accounted for under the provisions of APB Opinion
         No.  16,  Business  Combinations,  as a pooling of  interests,  and was
         reflected in the financial statements for the year ended June 30, 2001.
         Financial  statements  for prior years were  restated to give effect to
         the combination.

         The interim  financial  statements for the three months ended September
         30, 2000,  presented  herein,  have been restated to give effect to the
         combination.  As a result,  revenues  reported  have been  increased by
         $207,756 and net income has been increased by $157,327 for the period.

(3)      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.

         Basic and diluted  earnings per share amounts,  as well as the weighted
         average common shares considered outstanding for the three months ended
         September  30,  2000,  have  been  restated  to  reflect  the  business
         combination described above.



                                       8
<PAGE>

                               CUBIC ENERGY, INC.

                          NOTES TO FINANCIAL STATEMENTS

                            AS OF SEPTEMBER 30, 2001

                                   (Unaudited)



1.       SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

         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, 2001 Form 10KSB and should be read in
conjunction  with the financial  statements for the three months ended September
30, 2001 contained herein.

         The financial  statements  included herein as of September 30, 2001 for
the three  month  period  ended  September  30,  2001 have been  prepared by the
Company,  without an audit, pursuant to generally accepted accounting principles
for  interim  financial  information  and  the  rules  and  regulations  of  the
Securities and Exchanges  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 period.


ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS


RESULTS OF OPERATIONS


THREE MONTHS ENDED SEPTEMBER 30, 2001 COMPARED TO THREE MONTHS ENDED
SEPTEMBER 30, 2000


HISTORICALLY PRESENTED:

Gross  Revenues for the three months ended  September  30, 2001  increased  from
$24,630  at  September  30,  2000 to $49,957 at  September  30,  2001 due to the
transaction consummated by the company on April 27, 2001.

Oil and Gas Production,  Operating and Development  Costs increased from $17,703
(71% of oil and gas sales) at September  30, 2000 to $45,339 (91% of oil and gas
sales) at September 30, 2001.

Operating  Income  decreased  from a loss of $23,596 at September  30, 2000 to a
loss of $46,939 at  September  30, 2001 due to lower  market  prices for oil and
gas.




                                       9
<PAGE>

RESTATED COMBINED:

Gross  Revenues  decreased  from  $103,426 at  September  30, 2000 to $49,957 at
September 30, 2001 due to lower  production  and lower market prices for oil and
gas.

Oil and Gas Production,  Operating and Development  Costs increased from $43,184
(42% of oil and gas sales) at September  30, 2000 to $45,339 (91% of oil and gas
sales) at September 30, 2001.

Operating  Income  decreased  from a gain of $133,915 at September 30, 2000 to a
loss of $46,939 at September 30, 2001 due to lower  production  and lower market
prices for oil and gas.

Liquidity and Capital Resources

         As of October 01, 1999, long-term debt of the company was zero.

Year 2000 issue

The  Company  worked to  resolve  the  potential  impact of the year 2000 on the
ability of the Company's computerized  information systems to accurately process
information  that may be date  sensitive.  Any of the  Company's  programs  that
recognize a date using "00" as the 1900  rather that the year 2000 would  result
in errors  or  systems  failures.  The  Company  utilizes  a number of  computer
programs across its entire  operation.  As management still believes that all of
the Company's systems,  which are primarily purchased software systems, are year
2000  compliant and as no material  problem  related to the year 2000 issue have
been reported to date, the Company anticipates that this issue will have minimal
impact on the Company's  operations  and that future costs relating to year 2000
will be minimal. Because of the unprecedented nature of the year 2000 issue, its
effects  and the  success  of  related  remediation  efforts  will  not be fully
determinable  until the year 2000 and thereafter.  The Company  believes that it
has taken all  reasonable  steps to ensure Year 2000  readiness.  Its ability to
meet the projected  goals,  including the cost of addressing the Year 2000 issue
and the dates upon which  compliance will be attained,  depends on the Year 2000
readiness of its key suppliers and customers and the successful  development and
implementation of contingency plans. Although these and other unanticipated Year
2000 issues could still have an adverse  effect on the results of  operations or
financial condition of the Company, it is not possible to estimate the extent of
the impact at this  time.  The  foregoing  is a year 2000  readiness  disclosure
update pursuant to the Year 2000 Readiness and Disclosure Act.

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
"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.


                                       10
<PAGE>

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 10KSB for
the fiscal year ended June 30, 1999.

PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

In the spring of 1999,  the Company  became aware of the claim of Clifton  Kees,
Jr. ("Kees"), a geologist,  to a 1% overriding royalty interest in the Company's
oil and gas  properties  located in the Reagan  Sections  11 and 12,  Palo Pinto
County,  Texas.  Kees filed an  assignment in Palo Pinto  County,  Texas,  after
December  1, 1997,  upon which Kees bases his  claims.  The  Company,  after its
initial investigation, disputes Kees' legal rights to the overriding royalty and
has filed suit to challenge this royalty as described below.

William Vandever,  during the period of time in which he served as the President
and  Chief  Executive   Officer  of  the  Company,   purportedly   granted  some
preferential rights with respect to 75% of the Reagan leases in Section 11, Palo
Pinto County,  Texas, to participants  (including Kees and Vandever  himself) in
the re-work of the Reagan  #2-11 well.  The  Company  discovered  this in March,
1999.  Claims related to preferential  rights with regard to the Reagan lease in
Section 11 could materially and adversely affect the financial condition and the
outlook of the Company.  Based upon  information  obtained by the  Company,  the
Company has filed suit in the 29th Judicial District Court in Palo Pinto County,
Texas,  styled "Roseland Oil and Gas, Inc. v. William Vandever,  et al." against
Kees,  Vandever and various persons,  seeking a judicial  determination that all
grants of  preferential  rights in the Reagan Section 11 are void.  This lawsuit
was filed on April 26, 1999. The Company is vigorously pursuing this action.




                                       11
<PAGE>

ITEM 6. EXHIBITS AND REPORTS ON FORM 8K

B.  Reports on Form 8-K/A

The Company filed a Form 8-K/A on July 17, 2001 appending  additional  financial
information  to the Form 8-K filed by the Company on May 11, 2001  regarding  an
April 27, 2001 transaction completed by the Company.



                                         CUBIC ENERGY, INC.

DATE: November 9, 2001                   /s/ Calvin A. Wallen III, President




                                         Calvin A. Wallen III, President
                                         (Principal Executive, Financial and
                                         Accounting Officer)













                                       12