Energen Adds 3.6 Bcf To 2008 Natural Gas Hedge Position

Birmingham, AL - Energen Corporation announced recently that it has hedged an additional 3.6 billion cubic feet (Bcf) of its oil and gas unit's 2008 San Juan Basin natural gas production at an average NYMEX-equivalent price of approximately $9.02 per thousand cubic feet (Mcf). This brings the Company's total natural gas hedge position for 2008 to 10.8 Bcf at an average NYMEX-equivalent price of approximately $8.79 per Mcf and represents approximately 17 percent of its estimated 2008 natural gas production.

As previously disclosed, Energen also has hedged approximately 2.2 million barrels (approximately 53 percent) of its 2008 oil production at an average NYMEX-equivalent price of approximately $66.62 per barrel and some 4.5 million gallons (approximately 7 percent) of its 2008 natural gas liquids production at a price of approximately 87 cents per gallon.

Average natural gas and oil revenues per unit of production for ERC's production associated with NYMEX contracts will reflect the impact of basis differentials. Average NGL revenue per unit of production will be net of transportation and fractionation fees. For production associated with basin-specific contracts, ERC will receive the contracted hedge price and typically hedges basis differentials where applicable. The basin-specific contract prices have been converted for comparability purposes to a NYMEX-equivalent price by adding to them ERC's assumed basis differentials.

SOURCE: Energen Corporation