Document:

Exhibit 10.6

                               PURCHASE AGREEMENT

         THIS PURCHASE  AGREEMENT (the  "Agreement") is made and entered into as
of the 6th day of February,  2006 by and among Cubic Energy,  Inc.  ("Cubic") on
one hand  ("Cubic"),  and the both of Calvin Wallen III and Tauren  Exploration,
Inc. (collectively, "Tauren") on the other hand.

         WHEREAS,  Tauren maintains mineral  leaseholds,  with working interests
and net revenue  interests derived  therefrom,  in (i). Township 14N, Range 15W,
Sections  5, 6, 7 and 8 in  Caddo  Parish  / Desoto  Parish,  Louisiana  (the "4
SECTIONS")  and in (ii).  other areas in  Northwest  Louisiana as defined by the
Area Of Mutual Interest Map attached hereto and  incorporated  herein as Exhibit
"A";

         WHEREAS,  on or about  October  1, 2004,  Cubic and  Tauren  previously
effectuated a transaction  involving mineral leaseholds,  with working interests
and net revenue interests derived therefrom,  in Northwest Louisiana in Township
14N,  Range 16W,  Sections 24, 25, 26, Caddo  Parish,  Louisiana and in Township
14N,  Range 15W,  Sections 18, 19, 20, 29, 30, Caddo Parish,  Louisiana  (the "8
SECTIONS");

         WHEREAS,  Cubic and  Tauren  agree to the Area Of Mutual  Interest  Map
attached hereto as Exhibit "A", and understand that such Area Of Mutual Interest
Map  shall  specifically  carve  out the 4  SECTIONS,  the 8  SECTIONS,  and all
leaseholds  in Township 16 North,  Range 16 West  (hereinafter,  excluding the 4
SECTIONS;  the 8 SECTIONS;  and all  leaseholds  in Township 16 North,  Range 16
West; to be understood to be the "AMI PROPERTY")

         WHEREAS, Tauren is willing to transfer, sell and assign to Cubic (i). a
Thirty-Five Percent (35%) working interest in the 4 SECTIONS, (ii). a Forty-Nine
Percent (49%) working interest in the AMI PROPERTY currently under mineral lease
to Tauren and (iii).  an option to acquire,  at "cost",  a Seventy Percent (70%)
working  interest in all mineral  leases  obtained by Tauren in the AMI PROPERTY
subsequent to the date of this Agreement; in exchange for (v).  US$3,500,000.00,
(w). 2,500,000 authorized, non-registered/restricted Cubic common shares, (x). a
promissory  note in the  amount of  US$1,300,000.00  payable in sixty (60) days;
(y). a carried  interest for Tauren,  for Tauren's share,  for all wells drilled
and completed in any of the 4 SECTIONS, 8 SECTIONS and the AMI PROPERTY in which
Tauren maintains a working interest,  in the amount of  $2,100,000.00,  and (z).
granting a sixty (60) day exclusive  option to transfer a Fifteen  Percent (15%)
working  interest in the 4 SECTIONS and an additional  Twenty-One  Percent (21%)
working  interest  in the AMI  PROPERTY in exchange  for an  additional  carried
interest  in the  amount of  $2,400,000.00  [on the same terms as  described  in
1.1(y)  herein]  and a  sixty  (60)  month  promissory  note  in the  amount  of
$1,500,000.00; and WHEREAS, Cubic is willing to consummate such a transaction;

         AND,  WHEREAS,  it  is  expressly  understood  that  this  contemplated
transaction  is subject  to (a) Cubic  obtaining  the  necessary  financing,  in
Cubic's sole judgment, to close the transaction; (b) the Cubic Special Committee

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approving this transaction, and (c) the Special Committee's receipt of a written
opinion from its financial advisor as to the fairness, from a financial point of
view, of the transactions to Cubic's common stockholders.

         NOW,  THEREFORE,  for and in  consideration  of the premises and of the
mutual representations, warranties and agreements contained herein, and of other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged,  and upon the terms and subject to the conditions  hereinafter set
forth, Tauren and Cubic do hereby agree as follows:

                                    ARTICLE I
                                PURCHASE AND SALE

         1.1 Tauren and Cubic  agree that Tauren  hereby  sells,  transfers  and
assign to Cubic (i). a  Thirty-Five  Percent  (35%)  working  interest  in the 4
SECTIONS,  (ii). a Forty-Nine Percent (49%) working interest in the AMI PROPERTY
currently  under mineral lease to Tauren,  and (iii).  an option to acquire,  at
"cost",  a Seventy Percent (70%) working interest in all mineral leases obtained
by Tauren  in the AMI  PROPERTY  subsequent  to the date of this  Agreement  [as
described in Section 1.4 below];  in exchange for Cubic (v).  paying unto Tauren
US$3,500,000.00  at the  time of  Closing,  (w).  issuing  to  Tauren  2,500,000
authorized,  non-registered/restricted  Cubic  common  shares  at  the  time  of
Closing,  (x). a carried interest for Tauren,  for Tauren's share, for all wells
drilled and completed in any of the 4 SECTIONS,  8 SECTIONS and the AMI PROPERTY
in which Tauren maintains a working  interest,  in the amount of  $2,100,000.00,
(y).  executing a promissory  note in the amount of  US$1,300,000.00  payable in
sixty (60) days, and (z). granting a sixty (60) day exclusive option to transfer
a Fifteen  Percent  (15%)  working  interest in the 4 SECTIONS and an additional
Twenty-One Percent (21%) working interest in the AMI PROPERTY in exchange for an
additional carried interest in the amount of $2,400,000.00 [on the same terms as
described in 1.1(y) herein] and a sixty (60) month promissory note in the amount
of $1,500,000.00.  TAUREN  ACKNOWLEDGES THAT NONE OF THE COMMON SHARES ISSUED TO
TAUREN FROM CUBIC HEREIN HAVE BEEN REGISTERED  UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE "SECURITIES  ACT"), OR ANY STATE SECURITIES LAW; AND NONE OF THE
SHARES MAY BE SOLD,  TRANSFERRED  OR  OTHERWISE  DISPOSED OF UNLESS THE SAME ARE
REGISTERED  AND  QUALIFIED  IN  ACCORDANCE  WITH  THE  SECURITIES  ACT  AND  ANY
APPLICABLE  STATE  SECURITIES  LAWS,  OR IN THE  OPINION OF  COUNSEL  REASONABLY
SATISFACTORY TO CUBIC,  SUCH  REGISTRATION AND  QUALIFICATION  ARE NOT REQUIRED.
FURTHER,  TAUREN  ACKOWLEDGES  THAT  AS AN  AFFILIATE  OF  CUBIC,  IT  MAY  HAVE
ADDITIONAL  RESTRICTIONS  AS TO ITS RIGHTS AND PRIVILEGES  WITH RESPECT TO CUBIC
SHARES ISSUED HEREUNDER.

         1.2 Cubic and Tauren  agree that the  promissory  note in the amount of
$1,300,000.00  (the "PROMISSORY  NOTE") shall be in the form attached hereto and
incorporated  herein as Exhibit "B". Such  PROMISSORY NOTE shall accrue interest
at a rate of Twelve  and  One-Half  Percent  [12  1/2%] per annum on all  unpaid

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balances,  and be due and  payable  in  sixty  (60)  days  from the date of this
Agreement.  Tauren  hereby  waives  any and all liens  that may arise  because a
portion of the purchase price is not being paid in full at the time of Closing.

         1.3 To  expressly  survive  Closing,  Tauren  shall  ensure  that Cubic
obtains and maintains all the same rights and  privileges  Tauren has contracted
for with Fossil Operating,  Inc., with respect to the Joint Operating  Agreement
covering the 8 SECTIONS and the AMI PROPERTY.

         1.4 For the good and valuable  consideration of US$100.00,  the receipt
of which is hereby  acknowledged by Tauren,  for a period not to exceed ten (10)
years from the date of the execution of this Agreement,  Tauren gives unto Cubic
an option to acquire, at "cost", a Seventy Percent (70%) working interest in all
mineral leases, and only mineral leases,  obtained by Tauren in the AMI PROPERTY
subsequent  to the date of this  Agreement;  with  "cost"  defined as the actual
out-of-pocket costs plus the general and administrative costs incurred by Tauren
to obtain all rights in such mineral leases. Such option shall expressly survive
Closing.

         1.5 For the good and valuable  consideration of US$100.00,  the receipt
of which is hereby acknowledged by Tauren,  Tauren gives unto Cubic a sixty (60)
day  exclusive  option to acquire an  additional  Fifteen  Percent (15%) working
interest in the 4 SECTIONS and an  additional  Twenty-One  Percent (21%) working
interest in the AMI PROPERTY in exchange for an additional  carried  interest in
the amount of  $2,400,000.00  [on the same terms as described in 1.1(y)  herein]
and a sixty (60) month promissory note in the amount of $1,500,000.00.  In order
to exercise  such option,  Cubic will have been  required to raise an additional
$5,000,000.00  in debt or in equity to satisfy the  obligations as found in this
paragraph [which  aggregate of $5,000,000.00  shall include the monies raised to
satisfy the PROMISSORY NOTE described in Section 1.2].

         1.6 With respect to the extent of the carried  interest as described in
Section  1.1(y)  above,  Cubic agrees to pay for Tauren's  share of drilling and
completion costs for all wells drilled or completed in any of the 4 SECTIONS,  8
SECTIONS and the AMI PROPERTY in which Tauren maintains a working interest,  all
the while Tauren  maintains  its right to it's share of the  production  and its
working interest in that well.

         Should a balance remain  regarding the  US$2,100,000.00  carry interest
provided  to Tauren from Cubic,  and should a material  liquidating  event occur
with respect to the 4 SECTIONS,  the 8 SECTIONS  and/or the AMI  PROPERTY,  this
balance  shall be due and  payable  in cash from  Cubic to Tauren at the time of
closing of such material transaction.

                                   ARTICLE II
                     REPRESENTATIONS AND WARRANTIES OF CUBIC

         Cubic represents and warrants to Tauren as follows:

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         2.1 Authorization.  Subject to Director and Special Committee approval,
Cubic has the full power,  capacity and authority to execute this  Agreement and
all other agreements and documents  contemplated  hereby,  and to sell 2,500,000
shares of restricted common stock to Tauren.

         2.2 Organization,  Qualification, Outstanding Company Stock. Cubic is a
corporation duly organized, validly existing and in good standing under the laws
of the State of Texas. The Company has full corporate power and authority to own
and lease all of the  properties  and assets it now owns and leases and to carry
on its business as now being conducted,  and is duly qualified to do business in
each  jurisdiction  in which the  nature of its  business  or the  ownership  or
leasing of its properties makes such  qualification  necessary.  Cubic agrees to
maintain  the  necessary   authorized  common  shares  to  satisfy  all  of  its
obligations to Tauren hereunder.

         2.3  Compliance  with  Laws.  Cubic  (a)  is  in  compliance  with  all
applicable laws,  regulations  (including  federal,  state and local procurement
regulations),  orders,  judgments  and  decrees  except  where the failure to so
comply  would not have a material  adverse  effect on the  business,  prospects,
financial condition or results of operation or prospects of Cubic and (b) to the
knowledge of Cubic,  possesses all necessary licenses,  franchises,  permits and
governmental  authorizations  to conduct its business in the manner in which and
in the jurisdictions and places where such business is now conducted.

         2.4 Availability of Documents.  Cubic has made available for inspection
by Tauren and their  representatives  true, correct,  and complete copies of the
Articles  Of  Incorporation  of Cubic and  By-Laws of Cubic,  and the  corporate
minute books of Cubic. Such corporate minute books contain the minutes of all of
the meetings of  shareholders,  board of directors,  and any committees of Cubic
that have been held preceding the date hereof and all written consents to action
executed in lieu thereof.

                                   ARTICLE III
                    REPRESENTATIONS AND WARRANTIES OF TAUREN

         Tauren represents and warrants to Cubic as follows:

         3.1  Organization  and  Authorization.  Tauren has all requisite power,
capacity  and  authority  to execute and deliver  this  Agreement  and all other
agreements and documents contemplated hereby. The execution and delivery of this
Agreement and such other agreements and documents by Tauren and the consummation
by Tauren of the transactions  contemplated  hereby have been duly authorized by
Tauren and no other action on the part of Tauren is  necessary to authorize  the
transactions  contemplated  hereby.  This  Agreement  has been duly executed and
delivered by Tauren and constitutes the valid and binding  obligation of Tauren,
enforceable in accordance with its terms except that (i) such enforcement may be
subject to bankruptcy,  insolvency,  reorganization,  moratorium or similar laws
affecting  creditors' rights generally,  (ii) the remedy of specific performance

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and  injunctive  relief are  subject to certain  equitable  defenses  and to the
discretion of the court before which any proceedings  may be brought,  and (iii)
rights to indemnification  hereunder may be limited under applicable  securities
laws.

         3.2  8  SECTIONS,  AMI  PROPERTY  Leases.  Tauren  possesses  good  and
indefeasible  title to the working  interests and the mineral  leaseholds  being
transferred  to Cubic  hereunder.  Tauren  has not  sold,  pledged,  encumbered,
gifted, devised, demised, granted, exchanged,  leased, or otherwise assigned any
of the mineral  leaseholds  and/or working  interests being transferred to Cubic
herein,  with respect to both the 8 SECTIONS and the AMI  PROPERTY;  and,  other
than as  listed  on  Schedule  3.2  herein,  nor is  Tauren  aware  [explicitly,
constructively or otherwise] as to any adverse or competing claim to the mineral
leaseholds and/or the working  interests in any of the 8 SECTIONS,  or in any of
the AMI PROPERTY interests transferred hereunder.

         3.3 JOA.  Tauren shall ensure that Cubic  obtains and maintains all the
same rights and  privileges  Tauren has  contracted  for with Fossil  Operating,
Inc., with respect to the Joint Operating  Agreement covering the 8 SECTIONS and
the AMI PROPERTY.

                                   ARTICLE IV
                       CONDITIONS TO OBLIGATIONS OF TAUREN

         The obligation of Tauren to trade the working mineral hereunder,  shall
be subject to the  satisfaction of each of the following  conditions at or prior
to the Closing:

         4.1 Representations and Warranties. Each representation and warranty of
Cubic  contained in this  Agreement  and in any Schedule or other  disclosure in
writing  from Cubic shall be true and correct  when made,  and shall be true and
correct in all  material  respects on and as of the  Closing  Date with the same
effect as though such representation and warranty had been made on and as of the
Closing Date.

         4.2 Covenants of Cubic.  All of the covenants and agreements  herein on
the part or the Cubic to be complied  with or performed on or before the Closing
Date shall have been fully complied with and performed.

                                    ARTICLE V
                       CONDITIONS TO OBLIGATIONS OF CUBIC

         The obligation of Cubic hereunder, shall be subject to the satisfaction
of each of the following conditions at or prior to the Closing:

         5.1 Representations and Warranties. Each representation and warranty of
Tauren  contained in this  Agreement and in any Schedule or other  disclosure in
writing from Tauren  shall be true and correct when made,  and shall be true and
correct in all  material  respects on and as of the  Closing  Date with the same
effect as though such representation and warranty had been made on and as of the
Closing Date.

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         5.2 Covenants of Tauren.  All of the covenants and agreements herein on
the part or the Tauren to be complied with or performed on or before the Closing
Date shall have been fully complied with and performed.

         5.3 Miscellaneous Conditions.  Cubic obtaining the necessary financing,
in Cubic's sole judgment, to close the transaction;  the Cubic Special Committee
approving this  transaction;  and the Special  Committee's  receipt of a written
opinion from its financial advisor as to the fairness, from a financial point of
view, of the transactions to Cubic's common stockholders.

                                   ARTICLE VI
                                     CLOSING

         6.1 Closing.  The closing of the transactions  contemplated hereby (the
"Closing")  shall  take place at the  offices  of Cubic's  counsel or such other
location as is agreed to by Tauren and Cubic, on or before February 8, 2006 (the
"Closing Date").

         6.2 Delivery At Closing.  At Closing, or at any agreed time thereafter,
Cubic shall deliver to Tauren: (i).  US$3,500,000.00,  (ii). a share certificate
for 2,500,000  shares of Cubic  restricted  common stock and (iii).  an executed
copy of the  PROMISSORY  NOTE,  in the form of Exhibit "B"  hereto.  At Closing,
Tauren  shall  deliver to Cubic all indicia of all rights to the stated  working
interest in the 8 SECTIONS and the AMI PROPERTY.

                                   ARTICLE VII
                            INDEMNIFICATION OF CUBIC

         7.1 Cubic's Losses.

         (a) Tauren agrees to indemnify and hold  harmless  Cubic from,  against
and in  respect  of any and all  Cubic's  Losses (as  defined  below)  suffered,
sustained,  incurred  by or  required  to be  paid  by  reason  of any  material
representation  or warranty made by Tauren or pursuant to this  Agreement  being
breached.

         (b)  "Cubic's  Losses"  shall  mean  all  damages  (including,  without
limitation,  reasonable amounts paid in settlement with Tauren's consent,  which
consent may not be unreasonably  withheld),  losses,  obligations,  liabilities,
liens, deficiencies, costs (including, without limitation, reasonable attorneys'
fees), penalties, fines, interest,  monetary sanctions and expenses,  including,
without limitation, reasonable attorneys' fees and costs incurred to comply with
injunctions  and other court and agency  orders,  and other  costs and  expenses
incident to any suit, action, investigation, claim or proceeding or to establish
or enforce Cubic's right to indemnification hereunder.

         7.2  Notice  of Loss.  Tauren  will not have any  liability  under  the
indemnity  provisions  of this  Agreement  with respect to a  particular  matter
unless a notice  setting forth in  reasonable  detail the breach or other matter
which is asserted has been given to the  Indemnifying  Party (as defined below),

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within  the  survival  period as set  forth in  Section  8.10  herein,  and,  in
addition, if such matter arises out of a suit, action, investigation, proceeding
or claim,  such notice is given  promptly,  but in any event within ten business
days after the Indemnified Party (as defined below) is given notice of the claim
or the  commencement  of the suit,  action,  investigation  or proceeding.  With
respect to Cubic's Losses,  Tauren shall be the  Indemnifying  Party,  and Cubic
shall be the Indemnified Parties.

         7.3 Right to  Defend.  Upon  receipt  of  notice  of any suit,  action,
investigation, claim or proceeding for which indemnification might be claimed by
an  Indemnified  Party,  the  Indemnifying  Party  shall be  entitled to defend,
contest or otherwise protect against any such suit, action, investigation, claim
or  proceeding  at its own cost and  expense,  and the  Indemnified  Party  must
cooperate in any such defense or other action.  The Indemnified Party shall have
the right, but not the obligation,  to participate at its own expense in defense
thereof by counsel of its own  choosing,  but the  Indemnifying  Party  shall be
entitled to control the defense  unless the  Indemnified  Party has relieved the
Indemnifying  Party from liability with respect to the particular  matter or the
Indemnifying  Party  fails to assume  defense  of the  matter.  In the event the
Indemnifying  Party  shall fail to defend,  contest  or  otherwise  protect in a
timely manner against any such suit, action, investigation, claim or proceeding,
the Indemnified  Party shall have the right, but not the obligation,  thereafter
to defend, contest or otherwise protect against the same and make any compromise
or settlement  thereof and recover the entire cost thereof from the Indemnifying
Party including,  without limitation,  reasonable attorneys' fees, disbursements
and all amounts paid as a result of such suit, action,  investigation,  claim or
proceeding or the compromise or settlement thereof; provided,  however, that the
Indemnified  Party must send a written notice to the  Indemnifying  Party of any
such  proposed  settlement or  compromise,  which  settlement or compromise  the
Indemnifying  Party may reject, in its reasonable  judgment,  within thirty (30)
days of receipt of such notice. Failure to reject such notice within such thirty
(30) day period shall be deemed an acceptance of such  settlement or compromise.
Notwithstanding  the above,  if (i) the  Indemnifying  Party is contesting  such
claim in good faith or (ii) the Indemnifying  Party has assumed the defense from
the  Indemnified  Party,  the  Indemnified  Party  may  effect a  settlement  or
compromise  over the  objection  of the  Indemnifying  party by  delivery to the
Indemnifying party of a written waiver of the right to indemnification for those
matters  specifically at issue. If the Indemnifying Party undertakes the defense
of such matters,  the Indemnified  Party shall not, so long as the  Indemnifying
Party does not  abandon  the defense  thereof,  be entitled to recover  from the
Indemnifying  Party any legal or other  expenses  subsequently  incurred  by the
Indemnified  Party  in  connection  with  the  defense  thereof  other  than the
reasonable costs of investigation  undertaken by the Indemnified  Party with the
prior written consent of the Indemnifying Party.

         7.4  Cooperation.   Tauren,   Cubic,  and  each  of  their  affiliates,
successors  and assigns  shall  cooperate  with each other in the defense of any
suit,  action,  investigation,  proceeding or claim by a third party and, during
normal business hours, shall afford each other access to their books and records

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and employees relating to such suit, action, investigation,  proceeding or claim
and shall  furnish  each other all such further  information  that they have the
right and power to furnish as may  reasonably  be necessary to defend such suit,
action, investigation, proceeding or claim.

                                  ARTICLE VIII
                                  MISCELLANEOUS

         8.1 Entire  Agreement.  This  Agreement  (including  the  exhibits  and
schedules  hereto),  in  conjunction  with that agreement on or about October 1,
2004,  constitutes the entire  agreement and supersedes all prior agreements and
understandings,  both  written and oral,  between  Cubic and Tauren  hereto with
respect to the subject matter  hereof,  and no party shall be liable or bound to
the  other in any  manner by any  representations  or  warranties  not set forth
herein.

         8.2 Successors and Assigns.  The terms and conditions of this Agreement
shall inure to the benefit of and be binding  upon the parties  hereto and their
respective  successors  and permitted  assigns.  Neither this  Agreement nor any
rights,  interests, or obligations hereunder may be assigned by any party hereto
without the prior written consent of all other parties hereto, and any purported
assignment in violation of this Section 8.2 shall be null and void.

         8.3  Counterparts.  This  Agreement  may be  executed  in  one or  more
counterparts,  each of which shall for all  purposes be deemed to be an original
and all of which shall constitute the same instrument.

         8.4  Headings.  The  headings  of the  articles  and  sections  of this
Agreement  are  inserted  for  convenience  only  and  shall  not be  deemed  to
constitute part of this Agreement or to affect the construction hereof.

         8.5  Construction.  As used  in this  Agreement,  the  words  "herein,"
"hereof"  and  "hereunder"  and  other  words of  similar  import  refer to this
Agreement as a whole and not to any particular  article,  section,  paragraph or
other subdivision.

         8.6  Modification  and Waiver.  Any of the terms or  conditions of this
Agreement may be waived in writing at any time by the party which is entitled to
the benefits thereof, and this Agreement may be modified or amended by a written
instrument  executed  by  Tauren  and  Cubic.  No  supplement,  modification  or
amendment of this Agreement  shall be binding unless  executed in writing by all
of the parties  hereto.  No waiver of any of the  provisions  of this  Agreement
shall be deemed or shall  constitute  a waiver  of any  other  provision  hereof
(whether or not similar) nor shall such waiver constitute a continuing waiver.

         8.7  Schedules,  Etc.  All exhibits and  schedules  annexed  hereto are
expressly made a part of this Agreement as though fully set forth herein.

         8.8  Notices.  Any  notice,  request,  instruction,  document  or other
communication  to be given  hereunder  by any party  hereto  to any other  party
hereto shall be in writing and validly given if (i) delivered  personally,  (ii)

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sent by telecopy with  electronic  confirmation  of receipt,  (iii) delivered by
overnight  express,  or (iv)  sent by  registered  or  certified  mail,  postage
prepaid, as follows:

If to Cubic, to:

Jon Stuart Ross
9870 Plano Rd.
Dallas, Texas 75238
(972) 681-9687 facsimile

If to Tauren and/or Calvin Wallen III, to:

Calvin Wallen III
9870 Plano Rd.
Dallas, Texas 75238
(972) 279-6994 facsimile

or at such other  address for a party as shall be specified by like notice.  Any
notice that is delivered personally, or sent by telecopy or overnight express in
the manner  provided herein shall be deemed to have been duly given to the party
to whom it is  directed  upon actual  receipt by such party.  Any notice that is
addressed  and  mailed  in the  manner  herein  provided  shall be  conclusively
presumed to have been given to the party to whom it is addressed at the close of
business,  local time of the recipient, on the fourth day after the day it is so
placed in the mail.

         8.9 GOVERNING LAW; VENUE. THIS AGREEMENT SHALL BE CONSTRUED,  ENFORCED,
AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF TEXAS  (WITHOUT  REGARD TO ITS
CHOICE OF LAW  PRINCIPLES).  VENUE SHALL LIE EXCLUSIVELY IN THE COURTS OF DALLAS
COUNTY, TEXAS.

         8.10  Survival of  Representations  and  Warranties.  Unless  otherwise
explicitly so stated, all representations and warranties  contained herein shall
survive the Closing and shall continue in full force and effect thereafter for a
period of three years following the Closing, except that the representations and
warranties   contained  in  Sections  2.1  and  in  Section  3.1  shall  survive
indefinitely.

         8.11 Invalid Provisions.  If any provision of this Agreement is held to
be  illegal,  invalid  or  unenforceable  under  present  or future  laws,  such
provision shall be deemed modified to the minimum extent  necessary to alleviate
such illegality,  invalidity, or unenforceability,  with such modified provision
treated as if originally  contained herein, and the remaining provisions of this
Agreement shall remain in full force and effect.

         8.12 Expenses.  Tauren and Cubic shall each be solely  responsible  for
their respective costs and expenses incurred in connection with the transactions
contemplated hereby.

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         8.13 Number and Gender of Words.  Whenever the singular number is used,
the same shall  include the plural  where  appropriate,  and words of any gender
shall include each other gender where appropriate.

         8.14 Further  Assurances.  From time to time after the Closing,  at the
request of any other party but at the expense of the requesting party, Cubic and
Tauren agree to execute and deliver any such other  instruments  of  conveyance,
assignment  and  transfer,  and take such  other  action as the other  party may
reasonably   request  in  order  to  consummate  or  evidence  the  transactions
contemplated hereby.

         8.15 1031 Like-Kind Exchange.  Each party consents to the other party's
assignment of its rights and  obligations  under this Agreement to its Qualified
Intermediary  (as that  term is  defined  in  Section  1.1031-1(g)(4)(v)  of the
Treasury Regulations),  or its Qualified Exchange Accommodation  Titleholder (as
that term is defined in Rev. Proc. 2007-37),  in connection with effectuation of
a like-kind exchange.  However,  Seller and Purchaser acknowledge and agree that
any  assignment  of this  Agreement to a Qualified  Intermediary  or a Qualified
Exchange  Accommodation  Titleholder  does not release  either party from any of
their respective  liabilities and obligations to each other under the Agreement.
Each  party  agrees to  cooperate  with the other to attempt  to  structure  the
transaction as a like-kind exchange.

         IN WITNESS  WHEREOF,  the parties  have  executed  and  delivered  this
Agreement as of the date first above written.

Cubic Energy, Inc.

/s/ Calvin Wallen, III
-------------------------------
Calvin Wallen, III
Chief Executive Officer

Tauren Exploration, Inc.

/s/ Calvin Wallen, III
-------------------------------
Calvin Wallen, III
President

/s/ Calvin Wallen, III
-------------------------------
Calvin Wallen, III

                                       10
<PAGE>

                             Exhibits and Schedules

Exhibit A         AMI Property
Exhibit B         Promissory Note
Exhibit C         Joint Operating Agreement

Schedule 3.2      Competing Or Adverse ClaimsExhibit 10.7

                                         NOTE

$1,300,000.00                            DALLAS, DALLAS COUNTY, TEXAS

                                         The 7th DAY of FEBRUARY, 2006

         Cubic Energy,  Inc., a Texas  corporation  (hereinafter  referred to as
"Maker"),  for  value  received,  promises  to pay  unto  the  order  of  Tauren
Exploration,  Inc. (hereinafter referred to as "Payee"), in lawful United States
Currency, the principal sum of One Million Three Hundred Thousand Dollars and No
Cents  ($1,300,000.00)  with interest  from the date hereof until  maturity (the
"Note").

1.       TERMS FOR PAYMENT.
         -----------------

         1.1. Maker promises to pay unto the order of Payee the principal amount
of One Million Three Hundred Thousand Dollars and No Cents  ($1,300,000.00),  on
or before April 3, 2006.  Maker agrees to pay Payee interest at a rate of twelve
and  one-half  percent  (12 1/2%) per annum on all unpaid  principal,  until all
principal and interest has been fully paid.

         1.2. Maker promises to pay Payee by check,  draft or money order to the
order of Payee at the below listed address:

                  Tauren Exploration, Inc.
                  ATTN: Calvin Wallen III
                  9870 Plano Rd.
                  Dallas, Texas 75238

         or any future agreed upon address.

2.       DEFAULT.
         -------
         2.1.  Maker shall be deemed to be in default  for any of the  following
reasons:

                  2.1.1. Failure to timely pay all sums due under the Note.

                  2.1.2. Assignment of any or all of the obligations pursuant to
         this note by Maker.

                  2.1.3.  Any voluntary or involuntary  petition filed on behalf
         or by Maker  pursuant to the  Bankruptcy  Code or pursuant to any other
         insolvency act or law.

                  2.1.4. The appointment of a receiver, liquidator or trustee to
manage or dispose of assets of Maker.

                  2.1.5 The forfeiture of Maker's charter as an entity in Texas.

<PAGE>

         2.2.  If Maker  becomes  in  default  under this Note due to any act or
omission,  Payee may provide Maker notice of default and give Maker fifteen (15)
days to completely cure such default.  Should,  upon receipt of proper notice of
default as described in the previous  sentence  hereto,  Maker fail to cure such
default within  fifteen (15) days,  Payee retains and holds any and all recourse
available to Payee in law or in equity,  and  additionally,  without  mitigating
those rights in law or in equity, Payee may exercise the following rights:

                  2.2.1. Without further notice to Maker,  accelerate all unpaid
         principal and interest as immediately due.

         To supersede  any  conflicting  provisions or covenants  herein,  it is
expressly understood that Maker will not be deemed in default of this Note until
such time that Payee  shall have sent  written  notice to Maker that an event of
default has been declared.

         At any time after April 3, 2006,  should the entirety of all  principal
plus interest not be paid off, with respect to the dollar amount then due, Payee
has the exclusive right, but not the obligation, to convert the total sum due to
restricted,  non-registered  common shares of Cubic  Energy,  Inc.  stock,  at a
conversion  rate of  $0.80/share.  Maker  warrants and  represents  that it will
maintain  sufficient  authorized  but  unissued  common  shares to satisfy  such
conversion.  PAYEE  ACKNOWLEDGES  THAT NONE OF THE COMMON SHARES ISSUED TO PAYEE
FROM MAKER HEREIN HAVE BEEN  REGISTERED  UNDER THE  SECURITIES  ACT OF 1933,  AS
AMENDED (THE  "SECURITIES  ACT"),  OR ANY STATE  SECURITIES LAW; AND NONE OF THE
SHARES MAY BE SOLD,  TRANSFERRED  OR  OTHERWISE  DISPOSED OF UNLESS THE SAME ARE
REGISTERED  AND  QUALIFIED  IN  ACCORDANCE  WITH  THE  SECURITIES  ACT  AND  ANY
APPLICABLE  STATE  SECURITIES  LAWS,  OR IN THE  OPINION OF  COUNSEL  REASONABLY
SATISFACTORY TO MAKER,  SUCH  REGISTRATION AND  QUALIFICATION  ARE NOT REQUIRED.
FURTHER, PAYEE ACKOWLEDGES THAT AS AN AFFILIATE OF MAKER, IT MAY HAVE ADDITIONAL
RESTRICTIONS AS TO ITS RIGHTS AND PRIVILEGES WITH RESPECT TO MAKER SHARES ISSUED
HEREUNDER.

3.       USURY.
         -----

         It is the  intention  of Maker and Payee to comply with all  applicable
         usury laws.  If any provision of this Note is deemed to be in violation
         of any applicable usury laws, the amount of the monthly interest due on
         the  unpaid  principal  balance  shall  immediately  be  reduced to the
         maximum lawful interest rate allowed under the applicable usury laws or
         as determined by any court of competent jurisdiction.  The calculations
         to determine  whether the rate of stated  interest on this Note exceeds
         the maximum  lawful  interest rate shall be  determined by  amortizing,

                                       2
<PAGE>

         allocating,  pro-rating  and  spreading  all interest  contracted  for,
         charged or received  during the full  stated  term of this Note.  Maker
         agrees to waive,  to the fullest  allowed by law, any and all penalties
         for which Payee  could  potentially  be held liable upon  determination
         that this Note is in violation of any usury laws.

4.       PREPAYMENT.
         ----------

         Prepayment  of all or part of this Note may be made at any time without
         penalty.  Early payments will first be applied to any unpaid  interest,
         then to principal. Any prepayments which are applied to principal shall
         act to reduce all associated interest.

5.       NOTICE.
         ------

5.1.     Any  notice to Maker  should be sent  certified  mail,  return  receipt
         requested,  and notice  shall be deemed given three days after the date
         such notice was postmarked:

                  Cubic Energy, Inc.
                  ATTN: James L. Busby
                  9870 Plano Rd.
                  Dallas, Texas 75238

5.2.     Any  notice to Payee  should be sent  certified  mail,  return  receipt
         requested,  and notice  shall be deemed given three days after the date
         such notice was postmarked:

                  Tauren Exploration, Inc.
                  ATTN: Calvin Wallen III
                  9870 Plano Rd.
                  Dallas, Texas 75238.

6.       LAWSUITS.
         --------

         Maker and Payee agree that it is in their best joint interests that any
         lawsuit growing out of any controversy arising pursuant to this Note be
         tried in front of a judge sitting without a jury. Maker and Payee agree
         to a waiver of their right to be heard by a jury of their peers to save
         costs of litigation and to streamline adjudication of any dispute.

7.       ENFORCEABILITY.
         --------------

         THE  OPERATION,  CONSTRUCTION,  VALIDITY AND EFFECT OF THIS  PROMISSORY
         NOTE SHALL BE  CONSTRUED  IN  ACCORDANCE  WITH THE LAWS OF THE STATE OF
         TEXAS.

8.       JURISDICTION.
         ------------

         All  parties  pursuant  to the Note  agree to  submit  any  controversy
         arising  pursuant  to this Note to the  jurisdiction  of the County and
         District  Courts of Dallas  County,  Texas and the courts of the United

                                       3
<PAGE>

         States  District  Courts of the Northern  District of Texas.  Maker and
         Payee  agree  that  these  above  listed  courts  will be the courts of
         exclusive jurisdiction for any controversy arising between them.

9.       SEVERABILITY.
         ------------

         If any  provision  or  covenant  of this  Note is found to be  invalid,
         illegal or  unenforceable,  the remaining  provisions  and covenants of
         this Note shall remain in full force and effect. Further, that invalid,
         illegal or unenforceable provision or covenant shall be deemed modified
         to the extent  necessary to alleviate such invalidity,  illegality,  or
         unenforceability,  with such modified  provision or covenant treated as
         if always contained herein.

10.      SCOPE.
         -----

         This  Note is the  complete  integration  of the  obligations  of Maker
         hereunder.  Any  modification or amendment to this Note must be made in
         writing, dated and signed by the Payee.

11.      CAPTIONS.
         --------

         The  captions  used as headings  for the  sections in this Note are for
         convenience only, and are not to be construed as part of this Note.

12.      SUCCESSORS AND ASSIGNS.
         ----------------------

         This Note is to be binding upon any and all  successors,  assigns,  and
         heirs of Maker; and is for the benefit of Payee and Payee's  successors
         and assigns.

         EXECUTED AS OF THE ABOVE WRITTEN DATE:

                                                     Cubic Energy, Inc.

                                                      /s/ Calvin Wallen, III
                                                     ---------------------------
                                                     Calvin Wallen, III
                                                     Chief Executive Officer

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