2009-09-24-2009-08-27-2009-08-27

JV to acquire 50% WI in KY New Albany shale prospects.

7921 Energy LLC has entered into a joint-venture agreement with Kentucky USA Energy Inc., London, Ky., (OTCBB: KYUS) to develop gas and oil prospects in, above and below the New Albany shale formation on new acreage in Todd, Muhlenberg and Christian counties in western Kentucky where Kentucky USA recently acquired farm-out rights from Thomasson Petroleum Enterprises Inc. Under the terms of the agreement, 7921 will have the right to participate with Kentucky USA in drilling and developing up to 40 wells. Phase 1 will consist of drilling and completing 10 wells. 7921 will earn a 50% working interest in each of the first 10 wells, which translates to a 37.5% net revenue interest, in exchange for providing Kentucky USA with $1.675 million to acquire its interest in the Phase 1 wells.