This report evaluates the natural gas potential of the Devonian Age shales of Kentucky. For this, the study: (1) compiles the latest geologic and reservoir data to establish the gas in-place; (2) analyzes and models the dominant gas production mechanisms; and (3) examines alternative well stimulation and production strategies for most efficiently recovering the in-place gas. The major findings of the study include the following: (1) The technically recoverable gas from Devonian shale (Lower and Upper Huron, Rhinestreet, and Cleveland intervals) in Kentucky is estimated to range from 9 to 23 trillion cubic feet (Tcf). (2) The gas in-place for the Devonian shales in eastern Kentucky is 82 Tcf. About one half of this amount is found in the Big Sandy gas field and its immediate extensions. The remainder is located in the less naturally fractured, but organically rich area to the west of the Big Sandy. (3) The highly fractured shales in the Big Sandy area in southeast Kentucky and the more shallow shales of eastern Kentucky respond well to small-scale stimulation. New, larger-scale stimulation technology will be required for the less fractured, anisotropic Devonian shales in the rest of the state. 44 refs., 49 figs., 24 tabs.