Kentucky USA Energy Updates on New Albany Shale Drilling Program

Kentucky USA Energy has provided an update on its drilling operation on its 2200 acre leasehold in the New Albany Shale in western Kentucky.

Drilling is presently at 1870 feet on Francis Grace #2 and is expected to reach total depth (“TD”) at the base of the shale formation of approximately 2600 feet. Drilling is presently at 1680 feet on Hunter Wells #1 and is expected to reach TD at the base of the shale formation of approximately 2400 feet. We have temporarily rigged down on J & J Johnston #1 due to the mechanical difficulties on the drilling rig at that location. However, the drilling contractor has rigged up different equipment at J & J Johnston #2, spudded-in, and is presently drilling at 925 feet.

The Company recently announced four point flow test results on three of the initial wells completed, and expects to test the additional 3 wells within the next few weeks.

Steven Eversole, CEO of Kentucky USA Energy commented, "We are in the planning stage of the gathering system for our initials wells, which will tie-in to the pipeline that has contracted to purchase the gas from our wells, and we expect to start construction on our gathering system as early as next month. We feel that there is continued strength in the natural gas markets, and we believe that natural gas will continue to play a significant part of our country's energy stability."