Kentucky USA Energy, Inc. Updates Shareholders on Tie-In

LONDON, Ky.--(BUSINESS WIRE)--Kentucky USA Energy, Inc. (OTCBB: KYUS) (the “Company”), hereby updates shareholders on the progress of the tie-in to the pipeline of Seminole Energy Services, LLC (“Seminole”) of the Company’s gathering system for its wells located on its leasehold in western Kentucky. The interconnection process is ongoing with the last few feet of pipe being welded at Seminole’s Olive Grove Gathering & Treatment Facility. The Company will be metering at the plant, and purging and testing the connection over the next few days and anticipates having its wells online within the next week.

“We are on the verge of achieving a major milestone; bringing our wells online and beginning to sell our gas,” said Steven Eversole, CEO of Kentucky USA Energy. “Once we officially begin production, we will evaluate our wells with respect to their initial production rates. We believe that our wells will produce efficiently for many years to come.”

The Company has identified additional well sites on its leasehold and expects to re-commence its drilling program once tie-in to the Seminole pipeline has been completed and production begins from its initial wells. In addition to its drilling program on its existing leasehold property, the Company is also beginning its previously announced joint venture with 7921 Energy LLC (the “7921 Joint Venture”) on the recently acquired farm-out acreage adjacent to the Company's existing leasehold property. Drilling on both projects is expected to start later this month. For more information about the 7921 Joint Venture, see the Company’s Form 8-K filed with the Securities and Exchange Commission on August 28, 2009.

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, processing 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.

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