Kentucky USA Energy, Inc. Announces Permit Approvals and Commences Drilling

LONDON, Ky.--(BUSINESS WIRE)--Kentucky USA Energy, Inc. (OTCBB: KYUS), an early stage natural gas exploration and production company, announced today that the Company has received the first 2 permits of the 5 permit applications submitted to drill on the previously identified initial well sites in its New Albany Shale leasehold in western Kentucky. The Company anticipates approval of the rest of the submitted permit applications shortly. In addition, the Company has contracted with a local drill rig operator to drill the initial wells on the Company’s leasehold. Spud-in and initial drilling commenced on the Francis Grace #1 location on June 20^th. The Company’s management expects to complete drilling on the Francis Grace #1 location to its targeted depth within the next 7 to 10 days.

“We are excited and pleased that we have commenced drilling at one of our initial sites. This represents the next building block in our Company’s ongoing commitment to increasing shareholder value,” said Steven Eversole, CEO of Kentucky USA Energy. "We believe Kentucky USA Energy has a unique opportunity in the oil and gas sector to grow quickly due to the increasing demand for 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 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 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, 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.
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