Kentucky USA Energy Underscores New Albany Shale Drilling Progress

Kentucky USA Energy, Inc.

Kentucky USA Energy has provided a drilling update on its New Albany Shale project. The Company has commenced drilling at the Walker-1 location and drilling is presently at a depth of 1170 feet. The Company expects to reach total depth (“TD”) on this well early this week.

The Walker-1 well was originally designated for drilling in May but spudding-in was delayed because of permitting matters. Due to a mechanical breakdown on the drilling rig at the J&J Johnston-1 well, the rig at that well has been rigged down and the drilling contractor is waiting for a replacement drive engine to be delivered.

Steve Eversole, CEO of Kentucky USA Energy commented, "Despite the delay caused by the drilling rig on J&J Johnston-1 well, we are pleased with the ongoing progress of the drilling operation and continue to press forward on our New Albany Shale project. We have identified our next four drilling locations and we plan to get as many drilled to TD as possible before the winter sets in."

In addition, the completion process is ongoing on our first five wells -- Slinker-1B, Francis Grace-1, Hunter Wells-1 (drilled to TD in place of Walker-1), Hunter Wells-2 and Billy Johnston-1. The Company plans to announce the results of the 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.