GOIL Granby Oil

    4 December 2007

Granby Oil and Gas plc

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

Monkwell Gas Field - increased interest and appraisal well planned for 2008

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 an increase in  its  interest  in  the
Monkwell  gas field in the Southern North Sea, by 11% to a total of 20%, together with  completion
of a farm in partner group aiming to drill an appraisal well in 2008.

Highlights:

    �       Increase in interest in Monkwell gas field to 20%
    
    �        Increase in P50 contingent resources, net to Granby, of 3.8 billion cubic feet of gas
             (0.7 million barrels of oil equivalent) to 7.0 billion cubic feet of gas

    �       Appraisal well expected to be drilled in 2008
    
Granby is pleased to announce that a Farm-in Agreement has been executed with Dana Petroleum (E&P)
Ltd  ('Dana'),  a wholly owned subsidiary of Dana Petroleum plc, by which Granby  has  secured  an
increased interest in the Monkwell gas field which is located in UKCS Licence P.001, Block  42/29a
(Monkwell  Sub  Area)  in the Southern North Sea.  Granby already has an agreement  with  Dana  to
acquire a 9.0% interest in Monkwell and is increasing its interest by 11% to a total of 20%.  Dana
will remain as operator with a 50.00% interest.

Gas  Plus  E&P  Limited and Dyas UK Limited are farming in on a similar basis,  each  acquiring  a
15.00%  participating interest. This will result in the following interests  in  the  Licence  and
Block after completion of Farm-in Interest assignments:

Dana Petroleum (E&P) Limited:             50.00% (operator)
Granby Enterprises Limited:               20.00%
Gas Plus E&P UK Limited:                  15.00%
Dyas UK Limited:                          15.00%

The  field  was  discovered in 1989 by well 42/29-6, which produced gas at  a  rate  of  26.8mmcfd
(million  cubic  feet  per day) from the Lower Leman Sandstone.  The field was  appraised  by  two
further  wells which also tested gas.  It is intended that a new well will be drilled in  2008  to
further appraise the field.

Under  the  agreed terms, Granby will fund its current participating interest and  the  additional
share of costs for the increased interest which will attract a mainly success based promote of the
dry hole drilling costs.

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 very pleased to have increased our share in the Monkwell field and to have helped move  it
towards appraisal and subsequent development.  An appraisal well is expected to be drilled in 2008
which may lead to a development in the near term.

Granby has an active drilling programme spanning exploration, appraisal and development with three
wells  currently drilling, and is preparing for at least three more wells in 2008.  Following  the
sale of Granby's interest in the Galoc field, Granby is well positioned to pursue its strategy  to
acquire  other  appraisal and development opportunities in the North Sea, onshore  Europe  and  in
other areas of interest."

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

"By  introducing other companies to the partnership, we have enabled a well to be fully funded  to
appraise this field where we see significant potential for reserves upside."

Gas                           Gross                       Net attributable to Granby         Operator
Contingent
Resources


Billion cubic
feet (bcf)
                 Proven    Proven and   Proven,      Proven      Proven and     Proven,          
                            Probable    Probable                  Probable      Probable
                                          and                                     and
                                        Possible                                Possible
Monkwell          26.1        35.0        44.7         5.2          7.0           8.9          Dana
                                                                                             Petroleum
Source: TRACS International
The  resource  and reserves information in this announcement has been prepared in accordance  with
the guidance in AIM notice 16 (AIM rules - guidance for Mining and Oil & Gas Companies) issued  in
March  2006.  This  resource update is prepared in accordance with the  definitions  used  by  the
Society  of  Petroleum  Engineers (SPE). The Directors can confirm that these  figures  have  been
reviewed  by  Richard  Moreton,  Executive Director,  who  has  over  23  years  experience  as  a
geophysicist within the oil industry.


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'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. First gas is expected in
        early 2008.
    *   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'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  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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