US Natural Gas Initiates Drilling In Ky.

US Natural Gas has initiated drilling a new well in Green County, Kentucky and reopened a previously producing well in Russell County, Kentucky.

The Company's wholly owned subsidiary, US Natural Gas Corp KY, initiated drilling activities on the Geraldine Turner #1 well in Green County, Kentucky on April 30, 2010. The Company retained an outside drilling contractor to perform the drilling and completion work. To date, the contractor has reached a depth of 600 feet and has set the surface casing. The projected total depth is 1800 feet to the second break of the Knox Formation.

In addition, US Natural Gas Corp KY initiated the reopening project on the Antle #1 well located in Russell County, Kentucky. The Antle #1 was originally drilled in to a total depth of 985 feet in 1984. Initial production showed a natural flow of 520 barrels per day from the Stones River formation. The well was later deepened and plugged in 1985. To date, the contractor has penetrated the concrete plugs set above 1000 feet to allow for inspection via camera at the previous zone of production.

The Company will maintain a 100% working interest and 84.5% net revenue interest in each of the wells.

"We are excited that we have commenced drilling activities on each well," said Wayne Anderson, President of US Natural Gas Corp. "Our plan is to further explore these leaseholds as the wells are placed into production."