Kentucky USA Energy, Inc. Announces Further Drilling Developments

LONDON, Ky.--(Business Wire)--
Kentucky USA Energy, Inc. (OTCBB: KYUS), an early stage natural
gas exploration and production company, announced today further
drilling developments on the New Albany Shale drilling operation.
After logging Francis Grace #1 well, the geophysical log confirms that
the shale formation encountered in this well is comparable to wells
evaluated in the original reserves study. The 4 1/2" production casing
has been run into the well. Further completion on Francis Grace # 1 is
ongoing.

Drilling is presently at 1500 feet on Hunter Wells #1. While
evaluating the drilling samples, COO of Kentucky USA Energy, C G
Collins has determined that the two formations in the upper part of
the well have been encountered at a higher level than anticipated. If
carried through to total depth, this could be very positive. In
addition, the drilling rig has rigged up and spudded-in on the Slinker
#1B well.

"We are very encouraged by the early indications we have
received," Steven Eversole, CEO of Kentucky USA Energy commented. "We
anticipate the positive indications of the Francis Grace #1 to be
carried into production. As we drill and complete the next few wells,
the Company will begin the next phase of our operation, which is to
lay the gathering system, tie-in the wells and commence gas sales to a
major purchaser."

About Kentucky USA Energy, Inc.

Headquartered in London, KY, Kentucky USA Energy, Inc. engages in
the acquisition, exploration, and development of oil and natural gas
resource properties, with a primary focus on New Albany shale gas in
the Illinois Basin in western Kentucky. The Company is a growing
independent energy company with the experience and technological
expertise to develop its gas resources in the Illinois Basin's New
Albany Shale.

More information about the Company may be found at
www.kusaenergy.com

Forward-Looking Statements

Certain statements in this news release, which are not historical
facts, are forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. These statements are
subject to risks and uncertainties. Words such as "expects",
"intends", "plans", "may", "could", "should", "anticipates", "likely",
"believes" and words of similar import also identify forward-looking
statements. Forward-looking statements are based on current facts and
analyses and other information that are based on forecasts of future
results, estimates of amounts not yet determined and assumptions of
management. Actual results may differ materially from those currently
anticipated due to a number of factors which may be beyond the
reasonable control of Kentucky USA Energy, including, but not limited
to, the availability and pricing of additional capital to finance
operations, including the drilling of its initial gas wells, longer
term drilling programs and additional leasehold acquisitions, the
viability of the shale gas fields in the Illinois Basin in western
Kentucky, the ability of Kentucky USA Energy to build and maintain a
successful operations infrastructure and to effectively drill and
develop producing wells, the successful negotiation and execution of
cost-effective third-party gas drilling and distribution agreements,
the continued commitment of drill rig operators and future economic
conditions and energy prices. Readers are urged not to place undue
reliance on the forward-looking statements, which speak only as of the
date of this release. We assume no obligation to update any
forward-looking statements in order to reflect any event or
circumstance that may arise after the date of this release. Additional
information on risks and other factors that may affect the business
and financial results of Kentucky USA Energy can be found in the
filings of Kentucky USA Energy with the U.S. Securities and Exchange
Commission.

Kentucky USA Energy, Inc.
Steven Eversole, 606-878-5987
CEO
or
Investor Relations:
Corporate Evolutions, Inc.
516-482-0155
Toll Free: 877-482-0155
info@corporateevolutions.com
www.corporateevolutions.com

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