The geophysical log confirms that the shale formation encountered in this well compares to that of wells evaluated in the company’s 2008 reserves study.

Additional updates on the company’s drilling operation are as follows: Both rigs that are contracted to the company have rigged down and the company’s drilling contractor is waiting to mobilize to the next two locations once the wet weather in the region breaks and the roads to the well sites become travelable. The company is continuing to stake additional locations for drilling and is submitting local permit applications. To date, Kentucky USA Energy has drilled 16 wells to total depth on its leasehold in the New Albany shale.

“The Spring season has brought us warmer but wet weather and we continue to work through these wet conditions as best as possible,” said Steven Eversole, chief executive officer of Kentucky USA Energy. “We look forward to updating our shareholders shortly on the progress of our tie-in to the third-party pipeline that will be purchasing the gas from our wells.”