Kentucky USA Energy Inc., London, Ky., (OTCBB: KYUS) says it has reached total depth of 2,732 feet on its Hunter Wells #4 well in the New Albany shale.

The company says the well has determined to be commercially viable, and approximately 166 feet of shale formation were encountered.

An additional gas zone that was not in the original study, the Dutch Creek formation, was also discovered in the well between 2,598- and 2,610 feet. Kentucky USA says it expects to complete this additional zone first.

The company says drilling is presently at 2,145 feet at the Slinker #2 well and is expected to reach total depth this week. The drilling contractor has mobilized its rig to the next drilling location, B Johnston #2, and is expected to spud-in and begin drilling soon.

Kentucky USA chief executive officer Steven Eversole says, “In a few of these last wells we have been drilling, we are encountering additional gas zones that were not in our original reserves study. These gas zones have shown strong gas to the surface and this is very encouraging for our revenue prospects as we continue to work towards building value in our company and creating shareholder value.”