ENSI Energysouth (MM)

EnergySouth Midstream announced today the results of the recently completed open season for long term firm storage services for the 4th Cavern at Bay Gas Storage�s facility in McIntosh, Alabama. Customer bids exceeded five times the capacity offered. Bay Gas has commitments for 92% of the 5 BCF expansion capacity and expects the remainder to be contracted by year end. Customer interest in firm storage services at Bay Gas and the Mississippi Hub facility remains strong and contracting activity has steadily gained momentum as the 1st Quarter 2010 in-service dates draw nearer. At the Mississippi Hub project, long term commitments are in place for a majority of the 7.5 Bcf of capacity in cavern #1. In an earlier open season, EnergySouth Midstream received non-binding expressions of interest for over three times the capacity offered in the first cavern. Negotiations are ongoing with interested parties and EnergySouth Midstream expects to have contracts in place for the remaining capacity for Cavern 1 at Mississippi Hub by year end. Russell Murrell, Vice President of Business Development for EnergySouth Midstream, Inc. stated, �The market for Gulf Coast storage is clearly building momentum as customers gain more clarity on which projects are geologically and economically viable, as well as strategically located on the natural gas grid. The robust level of customer interest we continue to receive shows that both of our projects stand front and center in any analysis of those factors.� EnergySouth Midstream, Inc. is a subsidiary of EnergySouth, Inc. (NASDAQ: ENSI), www.energysouth.com. EnergySouth, Inc. is the parent company of a group of energy related subsidiaries operating in the midstream and distribution segments of the natural gas industry.