Kentucky USA Energy Sees Commerciality at New Albany Shale Well

Kentucky USA Energy has reached total depth ("TD") of 2,732 feet on its Hunter Wells #4 well located on its leasehold in the New Albany Shale. The well has been evaluated and determined to be commercially viable and the well's drilling log confirms that there is approximately 166 feet of shale formation encountered in this well.

An additional gas zone which was not in the original reserves study, the Dutch Creek formation, was also discovered in the Hunter Wells #4 well between 2,598 and 2,610 feet. The Company expects to complete this additional zone first. The completion process has begun on this well and the 4 1/2" production casing is expected to be run into the well this week.

Additional updates on the Company's drilling operation are as follows: Drilling is presently at 2,145 feet at the Slinker #2 well and is expected to TD this week. The Company's drilling contractor has mobilized its rig to the Company's next drilling location, B Johnston #2, and is expected to spud-in and begin drilling that well later this week.

"In a few of these last wells we have been drilling, we are encountering additional gas zones that were not in our original reserves study," said Steven Eversole, CEO of Kentucky USA Energy. "These gas zones have shown strong gas to the surface and this is very encouraging for our revenue prospects as we continue to work towards building value in our Company and creating shareholder value."