Kentucky USA Energy has provided an update on the Company's drilling operation on its leasehold property in the New Albany Shale in western Kentucky.
The Company has reached total depth ("TD") of 2,762 feet on Golden Eagle #1, the eleventh well drilled to TD by the Company. The well has been evaluated and determined to be commercially viable and the well's drilling log confirms that there is approximately 150 feet of shale in the New Albany Shale formation encountered in this well. An additional gas zone which was not in the original reserves study, the Dutch Creek formation, was also encountered in the Golden Eagle #1 well between 2,600 and 2,625 feet. The Company expects to complete this zone first. The completion process has begun on the well and the 4 1/2" production casing is expected to be run into the well this week.
Additional updates on the drilling operation are as follows: Drilling is presently at 1,475 feet at the Hunter Wells #4 well. The drilling contractor has mobilized its rig to the Company's next drilling location, Slinker #2, has spudded-in and is presently drilling at a depth of 1,705 feet. Both of these wells are expected to reach TD this week. The Company continues to prepare for its tie-in to the pipeline that will be purchasing gas from its wells, and it is expected that the first such tie-in will occur within the next 45 days.
The Company has filed its Annual Report on "Form 10-K" for its fiscal year that ended October 31, 2008 with the SEC. The "E" that was added to the Company's symbol, indicating that its 10-K filing was late, is expected to be removed shortly.
"I apologize again for the delay in filing our annual report on Form 10-K for our fiscal year that ended October 31, 2008; we are putting in place certain measures to avoid any delays in our future filings," said Steven Eversole, CEO of Kentucky USA Energy. "We remain very excited about our drilling operation and we believe that once our wells are in production, we will have hit our next major milestone that our shareholders have been waiting for."
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