Kentucky USA Energy has reached total depth (TD) of 2,640 feet on its B Johnston #2 well located on its leasehold in the New Albany Shale in western Kentucky. The B Johnston #2 drilling log confirms that there is approximately 145 feet of shale formation encountered in this well and is showing strong gas to the surface. The completion process has begun on this well and the 4 1/2" production casing is expected to be run into the well next week.

Additional updates on the Company's drilling operation are as follows: Drilling is presently at 2,370 feet at its Swinney #1 well and is expected to reach TD this week. The Company's drilling contractor mobilized one of its rigs to the Company's next drilling location, J & Johnston #4 and expects to spud-in next week. Recent weather conditions in the region where the Company's wells are located have resulted in conditions that have made equipment difficult to maneuver, which delayed the original timeline of the tie-in of the Company's completed wells to the pipeline.

"We are pleased with the progress of our drilling operation to date. Even though the weather has delayed our tie-in schedule, we are confident that we will achieve the tie-in shortly," said Steven Eversole, CEO of Kentucky USA Energy.

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