SJI Enters Agreement to Sell Certain Marcellus Shale Assets

South Jersey Industries (NYSE: SJI) announces that one of its subsidiaries has entered into agreements with Endeavour International Corporation (NYSE: END, LSE: ENDV) to sell certain Marcellus Shale assets for total cash proceeds of approximately $9 million.

The transaction involves the company’s working interests and its interests in the gathering system held through its 30% ownership in Potato Creek, LLC. Since 2008, Potato Creek has leased the deep mineral rights on the 21,000 acres to SM Energy. Currently, three producing wells are located on this acreage and are included in the sale. SJI will retain its interest in the minerals and will continue to earn royalties on all gas production under the existing lease agreement. The closing is expected to occur in the fourth quarter of 2011.

Edward J. Graham, chairman, president and CEO of SJI noted, "We are pleased to announce this agreement to monetize the non-royalty portion of our Potato Creek Marcellus assets. We remain very bullish on the Marcellus Shale as a source of abundant, low-cost natural gas that will serve as a foundation for this country’s future energy needs. This transaction will reposition our investment to focus on acquiring passive royalty interests throughout the Marcellus.” Graham continued, "SJI’s ongoing program to acquire royalty rights on natural gas production is a strategic fit with our position as one of the largest natural gas marketers in the Marcellus.”

In addition to its Potato Creek royalty assets, SJI has acquired royalty interests in approximately 2,000 additional acres throughout the Marcellus.

Forward-Looking Statement

This news release contains forward-looking statements. All statements other than statements of historical fact included in this press release should be considered forward-looking statements made in good faith by the Company and are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. When used in this press release words such as "anticipate”, "believe”, "expect”, "estimate”, "forecast”, "goal”, "intend”, "objective”, "plan”, "project”, "seek”, "strategy” and similar expressions are intended to identify forward-looking statements. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the statements. These risks and uncertainties include, but are not limited to, the following: general economic conditions on an international, national, state and local level; weather conditions in our marketing areas; changes in commodity costs; the timing of new projects coming online; changes in the availability of natural gas; "non-routine” or "extraordinary” disruptions in our distribution system; regulatory, legislative and court decisions; competition; the availability and cost of capital; costs and effects of legal proceedings and environmental liabilities; the failure of customers, suppliers or business partners to fulfill their contractual obligations; and changes in business strategies. SJI assumes no duty to update these statements should actual events differ from expectations.

About South Jersey Industries

South Jersey Industries (NYSE: SJI) is an energy services holding company for utility and non-regulated businesses. A member of the KLD Global Climate 100 Index, SJI offers solutions to global warming through renewable energy, clean technology and efficiency. South Jersey Gas, one of the fastest growing natural gas utilities in the nation, strongly advocates the efficient use of energy while safely and reliably delivering natural gas in southern New Jersey. South Jersey Energy Solutions, the parent of SJI’s non-regulated businesses, provides innovative, environmentally friendly energy solutions that help customers control energy costs. South Jersey Energy acquires and markets natural gas and electricity for retail customers and offers energy-related services. Marina Energy develops and operates energy projects including thermal facilities serving hot and chilled water for casinos, cogeneration facilities and landfill gas-to-electricity facilities. South Jersey Resources Group provides wholesale commodity marketing and risk management services. South Jersey Energy Service Plus installs, maintains and services heating, air conditioning and water heating systems, services appliances, installs solar systems and performs energy audits. For more information about SJI and its subsidiaries, visit http://www.sjindustries.com.