Exhibit 99.1

4849 Greenville Avenue, Suite 1150, Dallas, Texas 75206, USA

T +1 214 987 1042    F +1 214 987 1047    W www.rpsgroup.com/energy

16 September 2010

The Directors

Cubic Energy, Inc.

9870 Plano Road

Dallas, Texas 75238

Dear Directors:

Cambrian Consultants (CC) America, Inc. d/b/a RPS completed a Securities and Exchange Commission (SEC) evaluation of the oil and gas reserves owned by Cubic Energy, Inc. (Cubic) in the Johnson Branch, Bethany Longstreet, and Caspiana fields of northern Louisiana effective 1 July 2010 and dated 16 September 2010.  RPS performed this evaluation in accordance with the SEC reserves definitions as can be found at the United States Government Printing Office website www.gpoaccess.gov.  SEC reserves evaluations consider only proved reserves.  Proved reserves generally fall into three sub-categories, which include Proved Developed Producing (PDP), Proved Developed Non-Producing (PDNP) and Proved Undeveloped (PUD).  Product pricing used in this report was based on an average of first day of the month prices over the year and have been held constant for the life of the wells. A differential was calculated based on actual prices received by Cubic for June and the average posted price for June. This differential was applied against the yearly average.

It is RPS’ understanding that the proved reserves estimated in this report constitute 100% of the proved reserves owned by Cubic.

The results of this evaluation are summarized below:

TOTAL PROVED

1

The study was based on data supplied by Cubic, on public domain information and on nonproprietary data from in-house files.  The supplied data was reviewed for reasonableness from a technical perspective.  As is common in oil field situations, basic physical measurements taken over time cannot be verified independently in retrospect.  As such, beyond the application of normal professional judgment, such data must be accepted as representative.

Operating costs were reviewed for non-recurring items and altered if necessary. Operating costs were held constant for the life of the properties.  Previous months run statements were reviewed to determine taxes and oil and gas pricing differentials.  A development plan in the form of AFEs was supplied by Cubic that included drilling costs and the timing associated with each item.

Product pricing used in this report was based on an average of the first day of the month prices over the period from 1 July 2009 to 1 June 2010.  The average price for oil, WTI, was $75.72/barrel.  The average price for gas, Henry Hub, was $4.05/MMBTU.  The average for NGLs used was $52.56/barrel.  A price differential was calculated based on actual prices and were adjusted for quality and location.  Prices were held constant for the life of the properties.

All three fields in the study are in northern Louisiana.  In the Johnson Branch Field, Cubic has several wells drilled through the shale, proving the formation exists in the field.  Chesapeake has drilled the first horizontal well in the formation, the 2-Alt, proving the economic viability of producing the shale using horizontal wells. Haynesville reserves were based on decline characteristics determined by generating a type curve for the horizontal Haynesville wells in the area of the Johnson Branch and Caspiana fields.

Reserves estimates were made using industry-accepted methodology including extrapolation of performance trends, volumetrics, and statistical analysis of analogs. The reserves in this report are estimates only and should not be construed as exact quantities.  The evaluators’ professional judgment and experience was used to select the most appropriate method and to determine the reasonableness of the results.  The estimates were made in accordance with the reserves definitions as endorsed by the SEC.  The reserves definitions allow for changes in category as information is gathered and as producing history is accumulated.  As such, the volume and class of reserves is expected to change and be revised with time.  A substantial portion of these reserves are for undeveloped locations or wells that lack sufficient production histories to perform decline curve analysis.  These estimates are generally subject to greater revision than wells with substantial production history. These methods were deemed appropriate for the purpose of the report.

Net oil and gas reserves are those estimated quantities of crude oil, natural gas, and natural gas liquids attributed to the evaluated interests (after deduction of applicable royalties and overriding royalties) that are considered to be economically recoverable under the economic conditions modeled.  It is implicit that good oil field practices are maintained in order to effect recovery of the estimated reserves.

2

Because of governmental policies and uncertainties of supply and demand, the sales rates, prices received for the reserves, and costs incurred in recovering such reserves may vary from assumptions made while preparing the report.  Estimates of reserves may increase or decrease as a result of future operations, market conditions, or changes in regulations.

RPS personnel who prepared this report are degreed professionals with the appropriate qualifications and experience to complete the project brief.  RPS and its staff do not claim expertise in accounting, legal and environmental matters, and opinions on such matters do not form part of this report.

3