Kentucky USA Energy Reports on Drilling at New Albany Shale Leasehold



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's drilling contractor mobilized its rig to the Company's next drilling location, Jimmy Jackson #1, spudded-in, and is presently drilling at approximately 1,172 feet. The Hunter Wells #4 location has been acidized in the Dutch Creek formation at 2,610 to 2,625 feet and at 2,705 to 2,718 feet. The swab and flow test on this well has indicated strong gas to the surface and the Company expects to increase its anticipated gas production at this well by more than double its original projections due to the second formation found in the well. As reported in our April 24, 2009 press release, our Hunter Wells #4 location is also showing small amounts of oil in the Dutch Creek formation.

"We are excited about the natural gas and unexpected oil findings in the Dutch Creek formation and we believe that these findings will increase our production within those wells," said Steven Eversole, CEO of Kentucky USA Energy. "As we near tie-in, it is prudent that we look at all of our options in order to maximize the selling of our natural gas. I want to thank our shareholders for being patient with our timeline. We continue to lay our gathering system and set meters to prepare ourselves for the initial connection to a third-party pipeline."