Kentucky USA Energy, Inc. provided an update to its production of natural gas from the Company's completed wells in the New Albany Shale and Dutch Creek formation in western Kentucky.

To date, the Company has drilled 17 wells, of which 16 have been completed and 15 have been tied into the pipeline that the Company has built to connect to the Olive Grove Gathering & Treatment Facility owned and operated by Seminole Energy Services, LLC ("Seminole"). The sale of the gas since our tie-in to the Seminole facility in October 2009 has been intermittent and was disrupted due to a bottleneck at the facility created as a result of the Company's increased gas volume flowing into the facility. Because of the potential increased sales volume expected from our wells, Seminole has made a substantial capital investment in its gathering and treatment facilities, which will increase efficiencies and improve Seminole's ability to accept the Company's natural gas into its facility. To view pictures of the Seminole plant upgrades, visit: http://www.kusaenergy.com/tie-in.html.

Once the Seminole facility upgrade is complete, the Company will work with Seminole to balance the system and maximize the Company's production and delivery to the facility. The Company is expecting to steadily increase the rate of its production and delivery over the several weeks following completion of the facility upgrade. "We were expecting to update our shareholders with an estimated production rate sooner, however the disruption in the sale of our natural gas was unanticipated," said Steven Eversole, CEO of Kentucky USA Energy. "Our purchaser, Seminole, has spent the last several weeks adding new equipment to its facilities to better handle our production flow and is expected to complete its upgrade this week. Once we ascertain a consistent average daily flow, we will provide our shareholders with the estimated production rate on the wells we bring online."