Kentucky USA Energy, Inc. Announces Letter of Intent with Seminole Energy Services, LLC

LONDON, Ky.--(Business Wire)--
Kentucky USA Energy, Inc. (OTCBB: KYUS), a natural gas exploration and
production company (the "Company"), announced today the signing of a non-binding
letter of intent ("LOI") with Seminole Energy Services, LLC ("Seminole"), one of
the largest natural gas distributors in the Oklahoma, Kansas and Texas Panhandle
region. Pursuant to the terms of the LOI, the Company and Seminole will endeavor
to negotiate and execute over the next 30 days definitive agreements for the
purchase by Seminole of the production of gas from the Company`s wells on its
leasehold properties located in the western Kentucky region. It is expected that
the gas will be purchased on a delivered basis into Seminole`s utility system or
the pipeline system that Seminole manages.

Seminole, based in Tulsa, Oklahoma, provides natural gas marketing services to
end users and producers primarily in the Southwest, Midwest, Mid-Continent, and
Inter-Mountain regions of the United States. Seminole`s customer base today
numbers over 30,000 with average daily sales of 900 million cubic feet of
natural gas. (Source: www.seminoleenergy.com)

This LOI with Seminole is in addition to the contract that the Company already
has with another distributor, Atmos Energy Marketing, LLC. "We are excited about
this opportunity to partner up with Seminole and we expect to complete a formal
contract with Seminole within the next few weeks," said Steven Eversole, CEO of
Kentucky USA Energy. "We have now laid and tested over 45,000 feet of pipe for
the Company`s gathering system and we thank our shareholders for their support
and encouragement as we work to finalize this agreement and begin the sale of
our natural gas."

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, exploration stage independent
energy company with, it believes, the experience and technological expertise to
exploit the gas resources on its properties 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. 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 the volatility and
decreases in 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, CEO, 606-878-5987
or
Investor Relations
Corporate Evolutions, Inc.
Ph: 516-482-0155
Toll Free: 877-482-0155
info@corporateevolutions.com
www.corporateevolutions.com

Copyright Business Wire 2009