ENSI Energysouth (MM)

EnergySouth Midstream received expressions of interest for over 20 Bcf of natural gas storage capacity or more than three times the capacity that will be available at the first cavern under development at the Mississippi Hub natural gas storage facility in response to the company�s recent open season. Mississippi Hub will provide high deliverability storage services to customers seeking to manage the delivery of natural gas supplies to markets in the southeast and east coast regions of the United States. �The robust expression of interest validates our belief that this project is in the right place at the right time and will provide a much needed addition to the existing natural gas infrastructure,� said Russell Murrell, Vice President Marketing EnergySouth Midstream, Inc. The company is preparing a filing to seek authority to amend its existing FERC certificate. The filing will include a 1.5 Bcf expansion of capacity for each permitted cavern at Mississippi Hub and expansion of the pipeline header system to include interconnects with the Transco and SESH pipeline systems. Mississippi Hub currently holds FERC certificates for the development and operation of two salt dome caverns with a combined total working gas capacity of 12.0 Bcf and the construction of a pipeline interconnect with Sonat. If approved, the 3 Bcf expansion would increase Mississippi Hub�s permitted capacity to a total of 15.0 Bcf. EnergySouth Midstream conducted an open season from January 7, 2008 through January 25, 2008 for 12.0 Bcf capacity related to two caverns to be developed at Mississippi Hub. Mississippi Hub�s first cavern is expected to be operational by the fourth quarter of 2009. The company�s second cavern has a planned in-service date of mid 2011. When construction of the facility is completed, Mississippi Hub will allow access to traditional gas supplies in the Gulf of Mexico and along the Gulf Coast as well as emerging production from the Barnett Shale, east Texas and northern Louisiana. The facility�s location is also in close proximity to interstate pipelines and pipeline expansion projects accessing major natural gas markets including: SONAT, Crosstex, SESH, Transco, GulfSouth, and the KinderMorgan/Energy Transfer Partners Midcontinent Express. 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.