Kentucky USA Energy Reaches TD, Confirms Shale at Swinney #1

Kentucky USA Energy has reached total depth ("TD") of 3,460 feet on its Swinney #1 well located on its leasehold in the New Albany Shale in western Kentucky.

The Swinney #1 drilling log confirms that there is approximately 140 feet of shale formation encountered in this well which is showing strong gas to the surface. An additional gas zone which was not in the original reserves study, the Dutch Creek formation, was also encountered in the Swinney #1 well between 2,582 and 2,594 feet. Initial open flow tests from the Dutch Creek formation show an approximate potential flow of more than 150,000 cubic feet per day.

Additional updates on the Company's drilling operation are as follows: Drilling is presently at 1,522 feet at the J & Johnston #4 well and is expected to reach TD next week. Our Golden Eagle #1 well and Slinker #2 well have both been perforated and are scheduled for fracturing next week. Our Hunter Wells #4 well has been perforated and stimulated in the Dutch Creek formation and is showing oil in the formation which was not indicated in our initial engineering reports. Initial testing from this well shows a projected estimated flow of 100,000 cubic feet of gas and 5 barrels of oil per day.

"We have been pleased with the continued success in our drilling efforts. While we are somewhat surprised with the development of the additional formations that are below the New Albany Shale, we will remain focused on our original target," said Steven Eversole, CEO of Kentucky USA Energy. "Additional expected flow from the reservoirs we found in the Dutch Creek formation should enhance our position in the area."