GOIL Granby Oil

    28 September 2007

Granby Oil and Gas plc

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

Tristan NW Development Well Drilling Commenced

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 drilling operations on the Tristan NW
gas  development well commenced on 27 November 2007.  The single subsea well is expected  to  take
approximately 70 days to drill and complete as a horizontal production well.

The  development consists of a single subsea well with a control umbilical and 15km flowline which
will  deliver  gas to the Davy platform.  From there, the gas will be transported  to  the  Bacton
Terminal via the Inde 23a platform and existing pipelines.

Granby has a 54% participating interest in, and is production operator of, the Tristan North  West
gas  development  in  UKCS Licence P.105 Block 49/29b in the UK Southern  North  Sea.   Mitsubishi
Corporation  has  provided a loan facility agreement for the development, and  its  subsidiary  MC
Exploration  (UK)  Ltd and Mosaic Natural Resources are co-venturers in the  project.   First  gas
production is anticipated in the first quarter of 2008.


Enquiries:
 Granby Oil and Gas plc                                   020 7653 3660 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's current activity includes:

    *       54% interest in the Granby operated Tristan North West gas development in block 49/29b in
        the UK Southern North Sea, which commenced drilling on 27 November 2007
    *       10% interest in the Egdon operated Burton Agnes-1 exploration well onshore in Yorkshire
        which commenced drilling on 15 November 2007
    *        10%  interest in the Dana operated well appraising the Kerloch oil discovery on block
        211/22a NW, which commenced drilling on 21 November 2007.

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 mid 2008 to further appraise the field and to enable a development decision to  be
made.

Granby 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.

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 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



                                                                

Grafico Azioni Granby Oil & Gas (LSE:GOIL)
Storico
Da Mag 2024 a Giu 2024

Grafico Azioni Granby Oil & Gas (LSE:GOIL)
Storico
Da Giu 2023 a Giu 2024