Seneca Resources Corporation Provides Initial Results from recent Marcellus Shale Drilling

Seneca Resources Corporation ("Seneca”), a wholly owned subsidiary of National Fuel Gas Company (NYSE: NFG) ("National Fuel” or the "Company”), today announced that a Marcellus Shale well operated by its joint-venture partner, EOG Resources, was flow tested at an average rate of over 3.0 million cubic feet per day ("MMcfd”) for 7 days. Seneca holds a 50 percent working interest and a 60 percent net revenue interest in the well.

Matthew D. Cabell, President of Seneca, stated, "This flow test confirms our expectations for the potential of our Marcellus Shale position, most of which is fee mineral acreage, where we pay no royalty. This is a tremendous opportunity for Seneca, and as the primary focus of our E&P activities, we expect the Marcellus Shale to provide significant growth in production and reserves for many years. We are currently fracture-stimulating another well and expect flare testing to begin by the end of the month. Later in the summer, we expect to discuss the results from that next well, and, once we have more data-in-hand, we may be in a position to discuss an estimate for the range of Marcellus Shale resource potential across our extensive acreage position.” Seneca plans to operate 10 vertical wells and two to three horizontal wells in fiscal 2009, and participate in another eight to 10 wells to be operated by EOG Resources.

David F. Smith, Chief Executive Officer of National Fuel, added, "This successful well completion and the initial flow rates confirm the Marcellus Shale opportunity across our acreage. We will continue to focus our efforts – and our resources – on the Appalachian region in general and the Marcellus Shale in particular. Seneca will continue to expand drilling in this play through both our joint venture with EOG Resources and our Seneca-operated horizontal drilling program that will begin this July. Along with Seneca’s activities, our Midstream Company is already designing and building infrastructure projects to transport both Seneca and third-party production; and our Pipeline and Storage segment looks to expand its services to move natural gas produced from this vast resource to adjacent markets.”

Seneca, the exploration and production segment of National Fuel, explores for, develops and purchases natural gas and oil reserves in California, the Appalachian region and in the Gulf Coast region of Texas and Louisiana. Currently, Seneca’s efforts are focused on evaluating, exploring and developing reserves in the Appalachian basin, economically producing reserves in California and exploiting opportunities in the shallow waters of the Gulf of Mexico. Additional information about Seneca and National Fuel is available at www.nationalfuelgas.com or through the Company’s investor information service at 1-800-334-2188.

Certain statements contained herein, including those regarding estimated future earnings, and statements that are identified by the use of the words "anticipates,” "estimates,” "expects,” "forecasts,” "intends,” "plans,” "predicts,” "projects,” "believes,” "seeks,” "will,” "may” and similar expressions, are "forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties, which could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. The Company’s expectations, beliefs and projections contained herein are expressed in good faith and are believed to have a reasonable basis, but there can be no assurance that such expectations, beliefs or projections will result or be achieved or accomplished. In addition to other factors, the following are important factors that could cause actual results to differ materially from those discussed in the forward-looking statements: financial and economic conditions, including the availability of credit, and their effect on the Company’s ability to obtain financing on acceptable terms for working capital, capital expenditures and other investments; occurrences affecting the Company’s ability to obtain financing under credit lines or other credit facilities or through the issuance of commercial paper, other short-term notes or debt or equity securities, including any downgrades in the Company’s credit ratings and changes in interest rates and other capital market conditions; changes in economic conditions, including global, national or regional recessions, and their effect on the demand for, and customers’ ability to pay for, the Company’s products and services; the creditworthiness or performance of the Company’s key suppliers, customers and counterparties; economic disruptions or uninsured losses resulting from terrorist activities, acts of war, major accidents, fires, hurricanes, other severe weather, pest infestation or other natural disasters; changes in actuarial assumptions, the interest rate environment and the return on plan/trust assets related to the Company’s pension and other post-retirement benefits, which can affect future funding obligations and costs and plan liabilities; changes in demographic patterns and weather conditions; changes in the availability and/or price of natural gas or oil and the effect of such changes on the accounting treatment of derivative financial instruments or the valuation of the Company’s natural gas and oil reserves; impairments under the SEC’s full cost ceiling test for natural gas and oil reserves; uncertainty of oil and gas reserve estimates; factors affecting the Company’s ability to successfully identify, drill for and produce economically viable natural gas and oil reserves, including among others geology, lease availability, weather conditions, shortages, delays or unavailability of equipment and services required in drilling operations, and the need to obtain governmental approvals and permits and comply with environmental laws and regulations; significant differences between the Company’s projected and actual production levels for natural gas or oil; changes in the availability and/or price of derivative financial instruments; changes in the price differentials between oil having different quality and/or different geographic locations, or changes in the price differentials between natural gas having different heating values and/or different geographic locations; inability to obtain new customers or retain existing ones; significant changes in competitive factors affecting the Company; changes in laws and regulations to which the Company is subject, including tax, environmental, safety and employment laws and regulations; governmental/regulatory actions, initiatives and proceedings, including those involving acquisitions, financings, rate cases (which address, among other things, allowed rates of return, rate design and retained natural gas), affiliate relationships, industry structure, franchise renewal, and environmental/safety requirements; unanticipated impacts of restructuring initiatives in the natural gas and electric industries; significant differences between the Company’s projected and actual capital expenditures and operating expenses and unanticipated project delays or changes in project costs or plans; the nature and projected profitability of pending and potential projects and other investments, and the ability to obtain necessary governmental approvals and permits; ability to successfully identify and finance acquisitions or other investments and ability to operate and integrate existing and any subsequently acquired business or properties; significant changes in tax rates or policies or in rates of inflation or interest; significant changes in the Company’s relationship with its employees or contractors and the potential adverse effects if labor disputes, grievances or shortages were to occur; changes in accounting principles or the application of such principles to the Company; the cost and effects of legal and administrative claims against the Company or activist shareholder campaigns to effect changes at the Company; increasing health care costs and the resulting effect on health insurance premiums and on the obligation to provide other post-retirement benefits; or increasing costs of insurance, changes in coverage and the ability to obtain insurance. The Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.