GOIL Granby Oil

    Granby Oil and Gas plc

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

Galoc Farm-in Completed

Following Granby's recent announcement confirming approval by the Philippines
Department of Energy of the farm-in to the Galoc oil field located in the
Palawan Basin, offshore Philippines, Granby is pleased to confirm that the
transaction has now been completed by its wholly owned subsidiary Team Oil Ltd.

Granby's interests are held in a joint venture company, the Galoc Production
Company W.L.L. ("GPC"), which has been established to finance and develop the
Galoc field. The other shareholders in GPC are Cape Energy SA and Vitol
Holdings SARL. Granby's costs for the initial development are financed by GPC
which is underwritten by Vitol. Granby (via Team Oil Ltd) has a Board position
and 15.69% shareholding in GPC, equivalent to an interest in the Galoc Block
and oil field of 9.14%. The GPC shareholder agreement and Galoc assignment
documents are now fully complete allowing GPC to move the project forward.

As a result of the farm-in arrangements, GPC will have the operating role for
the Galoc Block (which forms part of Service Contract 14-C) with a 58.29%
participating interest which has been assigned to GPC from the Galoc Consortium
companies which are farming out.

Based on the initial development work done by Team Oil and Cape Energy, GPC
will prepare a formal development plan for submission to the Philippines
Department of Energy before the year end. GPC has appointed a project manager
to lead the execution of the project and the development team is being engaged.

First oil from Galoc is anticipated in early 2007 with an initial production
rate from the field of around 15,000 barrels of oil per day. The first phase of
the development plan will aim to recover around 7 million barrels before
addressing any upside which may exist in the field.

David Grassick, Managing Director of Granby Oil and Gas, said:

"We are very pleased to have completed this transaction and look forward to
participating in this project through GPC with Vitol and Cape."

Bob Moore, Commercial Director, said:

"Working with its co-venturers Granby has had a key role in bringing the
technical and financial solution for the development of the Galoc oil field now
being taken forward by GPC. Granby hopes to repeat this success with similar
project opportunities elsewhere".

Enquiries:

Granby Oil and Gas                       020 7464 8473                      
                                                                            
   David Grassick, Managing Director     07785 921080                       
                                                                            
   Bob Moore, Commercial Director        07715 748870                       
                                                                            
   Nigel Burton, Finance Director        077 8523 4447                      
                                                                            
KBC Peel Hunt                            020 7418 8900                      
                                                                            
   Jonathan Marren                                                          
                                                                            
College Hill                             020 7457 2020                      
                                                                            
   Ben Brewerton / Jim Joseph                                               
                                                                            



END

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