Kentucky Energy seeks to acquire new mines and contracting to produce and market additional coal in its geographic focus area. Kentucky Energy intends to acquire and operate high quality coal properties with established field personnel, primarily in the eastern Kentucky coalfields, with additional properties in southwestern West Virginia and western Virginia. This region has an excellent infrastructure of workers, truckers, rail sidings on the CSX and N&W rail lines and low cost access to the Big Sandy barge docks near Ashland, KY, for effective coal distribution. Kentucky Energy intends to use its local knowledge to pursue high returns on investment from re-opening profitable properties in this region. It intends to grow by additional accretive acquisitions, contract mining, and internal development of owned properties.
Kentucky Energy is also seeking to diversify its operations into other sectors of the energy industry, including the oil and gas sector. Kentucky Energy management believes that a successful diversification into the oil and gas field would provide Kentucky Energy with an opportunity to improve its results of operations while hedging on coal production and prices.
