Slinker #2 Logs 160 Feet of Shale for Kentucky USA Energy

Kentucky USA Energy Inc. announced that the Company has reached total depth of 2,618 feet on its Slinker #2 well located on its leasehold in the New Albany Shale in western Kentucky. This well has been evaluated by the Company and determined to be commercially viable. The Slinker #2 drilling log confirms that there is approximately 160 feet of shale formation encountered in this well. 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: Hunter Wells #4 and Golden Eagle #1 have been cemented and the Company is scheduled to perforate and fracture the bottom zone in the Dutch Creek formation (the additional gas zone that was not in our original reserves study) on both of these wells. Drilling is presently at 710 feet at B Johnston #2. The Company's drilling contractor mobilized its rig to the Company's next drilling location, Swinney #1 and spudded-in; presently drilling at 321 feet. The Company expects to TD on both B Johnston #2 and Swinney #1 this week.