EnergySouth Midstream Completes Successful Binding Open Season

  
    
  
  
    
      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.