Item 7.01. Regulation FD Disclosure

Attached hereto as Exhibit 99.1 is a press release issued by Kentucky USA Energy, Inc. (the "Company") on November 24, 2008.

This press release announces that the Company has progressed in its drilling operations at three well locations where it is currently drilling on its leasehold in western Kentucky. Drilling is presently at 1,870 feet with an expected total depth ("TD") at the base of the shale formation at approximately 2,600 feet on the Company's Francis Grace #2 location and drilling at the Company's location at Hunter Wells #1 is presently at 1,680 feet with an expected TD at approximately 2,400 feet. In addition, the Company's drilling efforts at its J&J Johnston #1 have not yet resumed operations due to mechanical difficulties and the Company's J&J Johnston #2 location is presently drilling at 925 feet.

Pursuant to General Instruction B.2 of Form 8-K, the information in this Form 8-K, including the exhibit, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, and are not incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

Item 9.01 Financial Statements and Exhibits

(c) Exhibits

99.1 Press Release dated November 24, 2008.

---