Bay Gas Storage Announces Open Season Results.

MOBILE, Ala. -- Bay Gas Storage Company, Ltd. ("Bay Gas") recently concluded its non-binding "Open Season" for up to 5 BCF of natural gas storage services and is pleased to announce that it received responses requesting more than twice the capacity offered in the Open Season. Bay Gas will immediately proceed with efforts to finalize the necessary agreements and approvals to proceed with the expansion. It is currently anticipated that the expansion will include the creation of a third natural gas storage cavern, expansion of its injection and withdrawal capacities and addition of new receipt/delivery points to its system with Transcontinental Gas Pipe Line Corporation and Gulfstream Natural Gas System, L.L.C.

Bay Gas, is a subsidiary of EnergySouth, Inc. (NASDAQ:ENSI), and currently has two natural gas storage caverns at its storage facility located about 40 miles north of Mobile, AL with direct interconnects to Florida Gas Transmission, Gulf South Pipeline and Mobile Gas Service Corporation. The two existing caverns have a combined working gas capacity of 6 BCF with injection and withdrawal capacities of 200 MMcf and 610 MMcf per day, respectively and are fully subscribed on a firm basis.

For additional information please contact David Hayden at [phone] or E-mail at [e-mail], Greg Welch at [phone] or E-mail at [e-mail], or visit our web site at www.bay-gas.com.