Exhibit 99.1     **Date:** February 6, 2008   **Contact:** Wes Phillips     **Release:** Immediately   **Phone:** 251-476-2720**EnergySouth, Inc. reports fiscal 2008 first quarter earnings and announces declaration of dividend****Mobile, AL:**EnergySouth, Inc. today reported earnings for the fiscal quarter ended December 31,2007 of $4,087,000, or $0.50 per diluted share, as compared to net income for the quarter endedDecember 31, 2006 of $4,614,000, or $0.57 per diluted share. The decrease in earnings of $0.07 perdiluted share was driven by the expansion of the Company’s midstream operations.Earnings from the Company’s midstream operations for the quarter ended December 31, 2007 were $0.13per diluted share, a decrease of $0.07 per diluted share as compared to the same period last year.The decrease in earnings was due primarily to increased operating expenses incurred as a result ofthe continuing expansion of the midstream operations, including the acquisition of assets inNovember 2007 to be developed in Mississippi. These increases in expense were partially offset byincreased revenues from short-term storage agreements and a decrease in net interest expense(interest expense less capitalized interest).Earnings per diluted share of $0.36 from the Company’s natural gas distribution business for thequarter ended December 31, 2007 were unchanged when compared to the same prior-year period.Margins, defined as revenues less cost of gas and related taxes, decreased due primarily to adecline in consumption by temperature-sensitive customers. This decrease was offset by a declinein operating expenses during the current-year period.Earnings from other business operations for the quarter ended December 31, 2007 were also unchangedwhen compared to the same prior-year period. A decrease in merchandise sales and relatedmerchandising activities was offset by an increase in net interest income earned during the currentyear period.The Board of Directors of EnergySouth, Inc., at a meeting held January 25, 2008, declared aquarterly dividend on the outstanding Common Stock of $0.25 per share, to be paid April 1, 2008 toholders of record as of March 14, 2008.EnergySouth, Inc. is a holding company which has two principal wholly-owned subsidiaries, MobileGas Service Corporation and EnergySouth Midstream, Inc. The Company’s natural gas distributionbusiness is conducted by Mobile Gas, which purchases, sells, and transports natural gas toresidential, commercial, and industrial customers in Mobile, Alabama and surrounding areas. MobileGas also provides merchandise sales, service, and financing. The Company’s
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natural gas midstreamoperations are conducted by EnergySouth Midstream, which is the general partner and 90.9% owner ofBay Gas Storage Company, a limited partnership that provides underground storage and delivery ofnatural gas. EnergySouth Midstream also owns 60% of Mississippi Hub, LLC, a limited liabilitycompany engaged in the construction anddevelopment of natural gas storage caverns. EnergySouth Services, Inc. is a wholly-ownedsubsidiary of EnergySouth Midstream engaged in natural gas marketing, trading and risk managementactivities, and is the general partner of Southern Gas Transmission Company, which is engaged inthe intrastate transportation of natural gas.**ENERGYSOUTH, INC.**