PATERSON, N.J., Sept. 29, 2010 (GLOBE NEWSWIRE) -- Kentucky Energy, Inc. (Pink Sheets:QMIN) (Kentucky Energy), a Kentucky based operator of energy and mineral related properties, has elected to expand its energy based operations into oil and natural gas exploration and development.
The Company is in the final stages of exercising an option on over 3,000 acres in Rockcastle County, Kentucky, in drilling participation with United States Energy Corp. (USE). In anticipation of drilling, USE has surveyed three drill sites and is in the process of preparing permits for the drill sites in conjunction with the participation development agreement.
There are three potential economic horizons. The Knox formation at about 2700 feet deep is the primary target. The Sunnybrook (Middle Ordovician) is a viable secondary prospect. Upon completion of the option, Kentucky Energy intends to participate in at least two test wells this year with other industry partners.
Kentucky Energy and United States Energy have mutually agreed to enter into a substantive Area of Mutual Interest Agreement which could result in the acquisition of up to an additional 10,000 acres by Kentucky Energy.
Kentucky Energy Chairman, Eugene Chiaramonte, Jr., noted, "With the intense interest in the Marcellus Shale and other Appalachian "tight sands" we feel this acreage play positions the Company for an exciting and extensive play in the oil and gas sector, hedging against our current position as a provider of high quality compliance coal."
About Kentucky Energy, Inc.: Kentucky Energy, Inc. acquires and operates energy and mineral related properties in the southeastern part of the United States. The Company focuses its efforts on properties that produce quality compliance blend coal. For more information on Kentucky Energy, Inc., please visit our website: KentuckyEnergyInc.com.
Forward Looking Statement: This press release contains items that may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although Kentucky Energy, Inc. believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurances that its expectations will be achieved. Factors that could cause actual results to differ from expectations include, but are not limited to, lack of revenue-producing operations, lack of working capital, debt obligations, judgment and lien claims against Kentucky Energy, Inc. and certain of its assets, difficulties in refinancing short term debt, difficulties identifying and acquiring complementary businesses, fluctuations in coal, oil and gas, and other energy prices, general economic conditions in markets in which Kentucky Energy, Inc. does business, extensive environmental and stock and other uncertainties and business issues that are detailed in its filings with the Securities and Exchange Commission.
CONTACT: Kentucky Energy, Inc. Eugene Chiaramonte, Jr. 973-684-0035 www.kentuckyenergyinc.com