Kentucky USA Energy, Inc. Commences Drilling Two Additional Wells

Kentucky USA Energy, Inc. Commences Drilling Two Additional Wells

Kentucky USA Energy, Inc., an early stage natural gas exploration and production company, announced today that the Company has commenced drilling at two additional well locations on its leasehold in western Kentucky. Drilling rigs have rigged up and spudded-in at the Hunter Wells #1 and Francis Grace #2 locations. Drilling at the J&J Johnston #1 well is still suspended due to a mechanical breakdown on the drilling rig and the drilling contractor is waiting for a replacement drive engine to be delivered. In addition, the Company has reached total depth (“TD”) of 2430 feet at the base of the shale formation at the Walker #1 location. The 4 ½” production casing has been cemented into the well and the Company is now coordinating for perforation and fracturing of Walker #1 well.

Kentucky USA Energy, Inc. began drilling on its 2200 acre leasehold in the New Albany Shale in western Kentucky in June of this year. To date, the Company has drilled six wells to TD and is currently drilling at various stages on the three wells referenced above. The six wells that have been drilled to TD are as follows:

* Francis Grace #1 with TD of 2626 feet * Hunter Wells #2 with TD of 2510 feet * Slinker #1B with TD of 2340 feet * Billy Johnston #1 with TD of 2387 feet * Hunter Wells #3 with TD of 2420 feet

* Walker #1 with TD of 2430 feet

The completion process is ongoing on these first six wells and the Company plans to announce the results of four point flow tests on these wells once completed by the independent gas analysis engineer who has been retained by the Company to perform the tests. This information regarding the wells we are currently drilling and completing updates and supersedes the information we have previously reported.

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, it believes, 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

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