Kentucky USA Energy, Inc. Discusses Western Kentucky Prospect

LONDON, Ky.--(BUSINESS WIRE)--Kentucky USA Energy, Inc. (OTCBB: KYUS), a natural gas exploration and production company has acquired a 75% net revenue interest in a leasehold in the western Kentucky region in conjunction with the recently announced Company’s reverse merger. The property acquired covers approximately 2200 acres in the Illinois Basin and targets an estimated 24 billion cubic feet (BCF) of natural gas within the prolific New Albany Shale. The leasehold property is capable of supporting 40-50 drilling locations 1800 to 2500 feet vertically, which is adjacent to producing gas and oil wells.

Unconventional natural gas reserves were previously thought unrecoverable or uneconomical; however these reserves have become a major contributor to growth in US gas supplies according to the Department of Energy. Recent reports in the April 2007 Kentucky Geological Survey estimate that there are over 6,000 shale gas wells producing between 50 and 70 billion cubic feet of gas annually in Kentucky.

“We have recently completed a reserve report on the 2200 acre property on which we have our working and net revenue interests and expect to announce the results shortly,” said Steven Eversole, CEO of Kentucky USA Energy. “This is an exciting time for the Company as we begin to tap into the gas reserves in the Illinois Basin. The overwhelming demand for natural gas production provides us the opportunity to achieve growth and market share in this sector and, in return, to enhance shareholder value.”

Energy companies that are successfully drilling producing gas wells in the area include Chesapeake Energy (NYSE: CHK), NGAS Resources Inc. (Nasdaq: NGAS), and ATMOS Energy Corporation (NYSE: ATO), one of the country’s largest natural gas distributors, which has a pipeline running through the Company’s leasehold property.

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 initially on shale gas in the Illinois Basin. The company is a growing independent energy company with the experience and technological expertise to develop the plentiful gas resources of 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 and leasehold acquisitions, the viability of the shale gas fields in the Illinois Basin and the ability of Kentucky USA Energy to build and maintain a successful operations infrastructure. 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.
Sam Winer, 606-878-5987
sam@kusaenergy.com
or
Investor Relations
Corporate Evolutions, Inc.
516-482-0155 or 877-482-0155
info@corporateevolutions.com
www.corporateevolutions.com