Exhibit 99.1     **Date:** May 2, 2008   **Contact:** Wes Phillips     **Release:** Immediately   **Phone:** 251-476-2720**EnergySouth, Inc. reports fiscal 2008 second quarter earnings and announces increase in annualdividend****Mobile, AL:**EnergySouth, Inc. today reported earnings for the fiscal quarter ended March 31, 2008of $6,271,000, or $0.77 per diluted share, as compared to net income for the quarter ended March31, 2007 of $6,831,000, or $0.85 per diluted share. Net income for the six month periods endedMarch 31, 2008 and 2007 was $10,358,000, or $1.27 per diluted share, and $11,445,000, or $1.42 perdiluted share, respectively. The decrease in earnings of $0.08 and $0.15 per diluted share for thethree- and six- month periods, respectively, was driven by the expansion of the Company’s midstreamoperations.Earnings from the Company’s midstream operations for the quarter ended March 31, 2008 were $0.09per diluted share, a decrease of $0.11 per diluted share as compared to the same period last year.Earnings for the six months ended March 31, 2008 decreased $0.18 per diluted share as compared tothe same period last year. The decrease in earnings was due primarily to increased operatingexpenses incurred as a result of the continuing expansion of the midstream operations. The Companyacquired assets in Mississippi in November 2007 and is currently developing storage caverns at thatlocation. Expenses also increased in anticipation of a third storage cavern in McIntosh, Alabamagoing into service on April 1, 2008 which increased the storage capacity of that facility from 6.0Bcf to 11.4 Bcf of working gas. Additional compressors which will serve the third cavern, as wellas existing caverns, went into service in December 2007. As such, the Company incurred additionalnet interest expense of $0.04 and $0.06 per diluted share in the current year three- and six monthperiods, respectively, that was previously being capitalized. Since the compressors are eligiblefor a fifty percent additional first year tax depreciation allowance under the Gulf OpportunityZone Act of 2005, the Company will realize tax savings of approximately $4 million. Theseincreases in expense were partially offset by increased revenues from short-term storageagreements.Earnings from the Company’s natural gas distribution business for the quarter ended March 31, 2008were $0.68 per diluted share, an increase of $0.04 per diluted share as compared to the sameprior-year period. Earnings for the six months ended March 31, 2008 also increased $0.04 perdiluted share as compared to the same prior-year period. The increase in earnings was drivenprimarily by a decline in operating expenses during the current-year period. The decrease inexpenses was partially offset by a decrease in margins, defined as revenues less cost of gas andrelated taxes, due primarily to a decline in consumption by temperature-sensitive customers.Earnings from other business operations decreased $0.01 per diluted share for each of the three
 

 
and six month periods ended March 31, 2008 when compared to the same prior-year periods dueprimarily to a decrease in merchandise sales and related merchandising activities.The Board of Directors of EnergySouth, Inc., at a meeting held April 25, 2008, declared a quarterlydividend on the outstanding Common Stock of $0.26 per share, to be paid July 1, 2008 to holders ofrecord as of June 16, 2008. The new annual rate of $1.04 per share represents a 4% increase andthe 33rd consecutive year in which dividends have been increased.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 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 and development of natural gas storage caverns. EnergySouthServices, Inc. is a wholly-owned subsidiary of EnergySouth Midstream engaged in natural gasmarketing, trading and risk management activities, and is the general partner of Southern GasTransmission Company, which is engaged in the intrastate transportation of natural gas.**ENERGYSOUTH, INC.**