Kentucky USA Energy, Inc. Announces Further Drilling Developments

Kentucky USA Energy, Inc., an early stage natural gas exploration and production company, announced today further drilling developments on the New Albany Shale drilling operation. After logging Francis Grace #1 well, the geophysical log confirms that the shale formation encountered in this well is comparable to wells evaluated in the original reserves study. The 4 ½” production casing has been run into the well. Further completion on Francis Grace # 1 is ongoing.

Drilling is presently at 1500 feet on Hunter Wells #1. While evaluating the drilling samples, COO of Kentucky USA Energy, C G Collins has determined that the two formations in the upper part of the well have been encountered at a higher level than anticipated. If carried through to total depth, this could be very positive. In addition, the drilling rig has rigged up and spudded-in on the Slinker #1B well.

“We are very encouraged by the early indications we have received,” Steven Eversole, CEO of Kentucky USA Energy commented. “We anticipate the positive indications of the Francis Grace #1 to be carried into production. As we drill and complete the next few wells, the Company will begin the next phase of our operation, which is to lay the gathering system, tie-in the wells and commence gas sales to a major purchaser.”

About Kentucky USA Energy, Inc.

Headquartered in London, KY, Kentucky USA Energy, Inc. engages in the acquisition, exploration, and development of oil and natural gas resource properties, with a primary focus on New Albany shale gas in the Illinois Basin in western Kentucky. The Company is a growing independent energy company with the experience and technological expertise to develop its gas resources in the Illinois Basin’s New Albany Shale.

More information about the Company may be found at www.kusaenergy.com