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 October 27, 2009.

On October 27, 2009, the Company began the production and sale of natural gas to Seminole Energy Services, L.L.C. ("Seminole"). The Company recently completed its interconnection to Seminole's Olive Grove Gathering & Treatment Facility, which is jointly owned by Seminole Gas Company, LLC, and Daugherty Petroleum, Inc., and is managed by Seminole. The Company has begun to deliver its gas to the Seminole facility and, following treatment of the gas, it will be purchased by Seminole in accordance with the terms of the Company's base contract with Seminole dated October 19, 2009 1 .

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

99.1 Press Release dated October 27, 2009

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1 As more fully discussed in our Form 8-K filed with Securities and Exchange Commission on October 23, 2009.

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