Cube Energy Announces Acquisition/Disposition.

CALGARY, ALBERTA--(BUSINESS WIRE)--AUGUST 1, 1996--CUBE ENERGY CORP. (TSE: CUK) Cube Energy Corp. ("Cube") has acquired, effective March 1, 1996, additional interests in the Zama/Larne area of northwest Alberta, a core area for Cube. This is a complimentary package of assets and results in an enhancement of Cube's existing working interests in a number of wells and leases in the area as well as the transfer of operatorship to Cube of the Larne gas pool.

Contemporaneous with the Zama/Larne acquisition Cube disposed of its entire interest, effective June 1, 1996, in the Atlee area of southern Alberta. In addition, Cube has executed an agreement to dispose of its entire interest, effective June 1, 1996, in the Dalemead area of southern Alberta.

The transactions, in regards to cost, reserves and land holdings, are summarized as follows: -0-

                              Cost
                          ------------
ZAMA/LARNE                 $4,930,000
(at March 1, 1996)

ATLEE/DALEMEAD            $(2,766,000)
(at June 1, 1996)
                          ------------
                           $2,164,000
                          ------------
                          ------------

               Natural Gas      Oil and NGL     Land Holdings
                 (MMCF)           (MBBLS)          (Acres)
              ---------------  ---------------  -------------
              Proven Probable  Proven Probable  Gross    Net
              ------ --------  ------ --------  -----    ---
ZAMA/LARNE    8,413    4,000    120.3   38.5   27,040  12,618
(at March 1,
   1996)

ATLEE/
DALEMEAD     (3,667)    (342)  (261.9) (95.5)  (8,398) (5,805)
(at June 1,
   1996)     -------   ------  ------- ------  ------- -------
              4,746    3,658   (141.6) (57.0)  18,642   6,813
             -------   ------  ------- ------  ------- -------
             -------   ------  ------- ------  ------- -------

Management of Cube is optimistic that the probable reserves being acquired in Zama/Larne will be developed prior to year-end and reclassified as proven.

These transactions will result in an acceleration of Cube's existing production rates as the Zama/Larne assets are comprised primarily of producing reserves, whereas, the majority of the assets being disposed are currently non-producing reserves.

Production in Atlee/Dalemead being disposed is currently 300 Mcf per day and 20 Barrels per day (although by year-end the production from these properties was previously projected to be 150 Barrels per day and 2,200 Mcf per day). The assets being acquired in Zama/Larne have a net current production capability of approximately 6,000 Mcf per day of raw natural gas production (subject to average shrinkage factors of 12 percent) and associated NGL production of 5 Barrels per million.

The Zama/Larne acquisition and the Atlee disposition closed on July 31, 1996. The Dalemead disposition is scheduled to close on September 6, 1996 and is subject to normal provisions respecting due diligence and title. Closing and post-closing adjustments will include interest calculations, and will also include net revenue from Zama/Larne for the months of March through June, and net revenue from Atlee/Dalemead for the month of June. It is estimated that Cube's net purchase price will be reduced by no less than $300,000 as a result of these adjustments.

Production and revenue amounts will impact Cube's financial statements commencing July 1, 1996.

CONTACT: Cube Energy Corp.

Mr. Randal J. Matkaluk

C.F.O.

[phone]