GOIL Granby Oil

    22 November 2007

Granby Oil and Gas plc

("Granby" or "the Company" or "the Group")

Farm in to UKCS Block 211/22a NW and Kerloch Discovery

Highlights:

    �       Acquisition of 10% interest in Kerloch area of block 211/22a North West
    
    �       Appraisal well currently drilling
    
Granby  Oil and Gas plc, the oil and gas exploration and production company with interests in  the
UK  North  Sea and onshore Europe, is pleased to announce that it has executed a Farm-In Agreement
to  participate with a 10% interest in UK North Sea Licence P.201 Block 211/22a NW, which contains
the Kerloch oil discovery.

The  field  was  discovered  in 1976 by well 211/22-1.   The new appraisal  well  which  commenced
drilling on 21st November into an adjacent fault block is expected to take 30 days to drill.

Under  the agreed terms, to earn a 10% participating interest from First Oil Expro Limited, Granby
will  fund 15% of the costs of drilling and testing the well up to a 100% gross expenditure capped
at  �14  million.   For  expenditure above the �14 million cap, Granby will  contribute  costs  in
accordance with its 10% participating interest.

The assignment of interests is subject to approval of the Secretary of State for the Department of
Business,  Enterprise  and Regulatory Reform (DBERR) to the assignment  of  Licence  interests  to
Granby.


David Grassick, Managing Director of Granby Oil and Gas, said:
"We  are  pleased to participate in the appraisal of the Kerloch discovery, which is in line  with
our  strategy to acquire other appraisal and development opportunities in the North Sea and  other
areas of interest."

Bob Moore, Commercial Director of Granby Oil & Gas, said:

"Following the sale of Galoc, Granby is now able to recycle some of the funds into other appraisal
and development projects such as Kerloch and Monkwell."


Enquiries:
 Granby Oil and Gas plc                                     020 7648 4950 or
                                                            0845 2577537
    David Grassick, Managing Director                       07785 921080
                                                            
    Nigel Burton, Finance Director                          077 8523 4447
                                                            
    www.granbyoil.com                                       
                                                            
 KBC Peel Hunt (Nominated Adviser)                          020 7418 8900
    Jonathan Marren / Matt Goode                            
                                                            
 College Hill                                               020 7457 2020
    Nick Elwes / Paddy Blewer                               
                                                            

Notes to Editors

Overview of the Business
Granby  Oil  and  Gas  plc (LSE symbol GOIL) is building a significant oil  and  gas  exploration,
development  and production portfolio in carefully selected areas of the North Sea  and  elsewhere
through technical and commercial innovation.

Granby's Portfolio and Plans
Granby owns a 54% participating interest in, and is production operator of, the Tristan North West
gas  development in block 49/29b in the UK Southern North Sea. Mitsubishi Corporation,  which  has
provided  a  loan  facility agreement for the development, and Mosaic Natural  Resources  are  co-
venturers  in  the project.  The first phase of subsea development operations has  been  completed
with the flowline and control umbilical installed, hydro-tested and trenched.  Drilling operations
for the single subsea development well have commenced.  First gas is expected in early 2008.

Granby has a 9% interest in the Monkwell gas field in UKCS Licence P.001, Block 42/29a.  The field
was  discovered in 1989 by well 42/29-6, which produced gas at a rate of 26.8mmcfd from the  Lower
Leman  Sandstone.  The field was appraised by two further wells which also tested gas. A new  well
is planned for 2008 to further appraise the field and to enable a development decision to be made.

Granby  also  announced on 29 October the sale of its 9.14% indirect interest  in  the  Galoc  oil
field, offshore Philippines, to Otto Energy Ltd. The total cash consideration payable to Granby is
USD  $25.5  million,  comprising  US$16.66 million payable at Completion,  repayment  of  existing
Shareholder  Loan  amounts  to  GPC  of  approximately  US$2.59  million,  and  repayment  of  the
approximately US$6.3 million deposit held in escrow with Banca Intesa as security for the  project
financing. In addition, Otto will issue to Granby one million shares in Otto (to be held in escrow
for a period of 12 months) and four million options at an exercise price of 34 cents per share (to
be  held  in escrow for a period of 12 months) and which lapse if not exercised within  24  months
from  their issue. At the completion of the transaction, and allowing for the costs of the Kerloch
appraisal  well,  Granby is expected to have approximately �15 million of cash available  to  fund
further growth of the business.

Granby's  current exploration acreage comprises interests in a portfolio of offshore  licences  in
the  North  Sea,  containing  multiple prospects generated by the Company.   Granby  also  has  an
interest in a single onshore licence in Yorkshire where an exploration well commenced drilling  on
15 November 2007.

Granby  also  has a 50% working interest in two blocks, one of which contains discovered  oil  and
gas, located in the gas prolific Northern Rotliegendes sub-basin onshore Poland.





                                                                
Granby Oil & Gas plc



                                                                

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