Exhibit 99.1   **Date:** April 28, 2006 **Contact:** Charles P. Huffman   **Release:** Immediately **Phone:** 251-476-2720**EnergySouth, Inc. reports fiscal 2006 second quarter earnings and announces declaration of dividend**The Board of Directors of EnergySouth, Inc., at a meeting held April 28, 2006, declared a quarterlydividend on the outstanding Common Stock of $0.23 per share, to be paid July 1, 2006 to holders ofrecord as of June 15, 2006. The new annual rate of $0.92 per share represents a 7% increase andthe 31st consecutive year in which dividends have been increased.Net income for EnergySouth, Inc. for the quarter ended March 31, 2006 was $6,661,000 or $0.84 perdiluted share, as compared to net income for the quarter ended March 31, 2005 of $6,795,000, or$0.85 per diluted share. Net income for the six month periods ended March 31, 2006 and 2005 was$11,145,000, or $1.40 per diluted share, and $11,111,000, or $1.40 per diluted share, respectively.The decrease in earnings of $0.01 per share for the second fiscal quarter is due primarily to adecline in earnings from Mobile Gas’ distribution business which was mostly offset by increasedearnings from the Company’s Bay Gas subsidiary.Bay Gas’ earnings increased by $0.05 and $0.06 per diluted share, respectively, for the three andsix months ended March 31, 2006. The increases in earnings were due to increased storage revenuesassociated with new contracts for long-term storage services, reduced operating expenses and anincrease in the amount of interest expense capitalized for the construction of its thirdunderground natural gas storage cavern. The reduction in operating expenses includes a one timecredit of approximately $0.02 per diluted share related to certain cavern lease payments recordedas a prepaid asset which will be amortized over the remaining term of the lease under which thepayments are made.Earnings per share from Mobile Gas’ distribution business decreased $0.07 per diluted share for thethree and six month periods ended March 31, 2006 due primarily to a decline in consumption fromtemperature sensitive customers during the second fiscal quarter. High natural gas prices duringthe 2005-2006 winter months and related adverse publicity regarding higher rates to gasdistribution company customers had a significant impact on average consumption patterns. Thecurrent-year results for the six months ended March 31, 2006 include a one-time credit to operatingexpenses related to discontinued postemployment health insurance of approximately $0.03 per dilutedshare.

 
Earnings from other business operations for the quarter ended March 31, 2006 were unchanged.Earnings from other business operations for the six months ended March 31, 2006 increased $0.01per diluted share due to an increase in interest income.EnergySouth, Inc. is the holding company for a family of energy businesses. Mobile Gas purchases,sells, and transports natural gas to residential, commercial, and industrial customers in Mobile,Alabama and surrounding areas. Mobile Gas also provides merchandise sales, service, and financing.MGS Storage Services is the general partner of Bay Gas Storage Company, a limited partnership thatprovides underground storage and delivery of natural gas for Mobile Gas and other customers.EnergySouth Services is the general partner of Southern Gas Transmission Company, which is engagedin the intrastate transportation of natural gas.**ENERGYSOUTH, INC.****FINANCIAL RESULTS**