GOIL Granby Oil

    Wednesday, 23 November 2005

Granby Oil and Gas plc

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

Granby Farms in to North Sea Block 9/27a

Granby Oil and Gas plc is pleased to announce that it has signed Heads of
Agreement with Century Exploration (UK) Ltd to farm in to UKCS Block 9/27a.

Granby will fund 25% of the cost of drilling and testing a well on Block 9/27a
to earn a 12.5% participating interest in the Licence. The cost of Granby's
participation in the well is expected to be around �1.25 million, increasing to
around �1.6 million if the well is tested. Assignment to Granby is subject to
the approval of the Secretary of State for Trade & Industry, and to execution
of a fully termed farm-in agreement to be completed shortly.

The Hendrix prospect is a robust four-way dip closed structure with significant
additional stratigraphic upside. The initial well will be drilled to a depth of
approximately eighteen hundred and fifty metres (1,850m) true vertical depth subsea
to target the Hendrix prospect in a well defined Palaeocene submarine fan
sandstone. The Bredford Dolphin drilling rig is already contracted to Century
and is expected to mobilise to drill the well in December 2005. The well is
anticipated to take some 3 weeks to drill.

In the event of oil being produced from the block, Granby would be required to
pay its share (0.34%) of a pre-existing royalty on gross production.

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

"We are very pleased to participate with Century in this early well which will
target the Hendrix prospect. We chose to make our first North Sea farm in on
this block as it has modest risk, is relatively low cost and close to existing
infrastructure and has very large upside potential."

Richard Moreton, Executive Director, said:

"The Hendrix prospect has been known to Granby for some time now and it is very
exciting to be participating in a well on this feature. Granby's participation
in this well is consistent with our regional exploration strategy and enables
the company to advance its drilling programme for this area of the North Sea."

Enquiries:

Granby Oil and Gas                       020 7653 3660                      
                                                                            
   David Grassick, Managing Director     07785 921080                       
                                                                            
   Richard Moreton, Executive Director   07814 579246                       
                                                                            
   Nigel Burton, Finance Director        07785 234447                       
                                                                            
KBC Peel Hunt                            020 7418 8900                      
                                                                            
   Jonathan Marren                                                          
                                                                            
College Hill                             020 7457 2020                      
                                                                            
   Ben Brewerton / Nick Elwes                                               
                                                                            

Notes to Editors

Background

This is the first time that Granby has farmed in to another company's licence
in the North Sea. The farm in provides investors with drilling activity much
earlier than planned with a well due to begin drilling before Christmas this
year. Blocks 9/27a and 16/2b lie in the Viking Graben area of the North Sea in
an area well known to Granby, which holds a 33.3% interest in the nearby blocks
9/26a, 16/1b & 16/2c.

Following assignment to Granby, interests in block 9/27a will be as follows:

Century Exploration (UK) Limited (Operator) and affiliates 87.5%

Granby Oil and Gas plc 12.5%

Overview of the Business

Granby Oil and Gas plc (ticker symbol GOIL) has raised �11.5m of which �10m was
from a placing and Admission to AIM in June 2005.

Granby is an oil and gas business focused on exploration in carefully selected
areas in the North Sea and elsewhere, and also on securing production and
development, initially in the Galoc field in the Philippines.

The Group's strategy is to build a significant portfolio of assets through the
discovery and exploitation of oil and gas reserves. The Group was formed from
the combination of Granby Enterprises and Team Oil, two independent companies
which were closely associated and since June 2004 have had common management
teams and ownership.

The combined management team includes five former executives from Enterprise
Oil plc, one of the largest independent companies operating in the North Sea
during the 1980s and 1990s.

Granby's portfolio and plans

Granby is planning a multi-well programme for 2006 on a number of its other
North Sea prospects which it plans to farm out.

Prior to this farm in, the asset base of Granby comprised interests in 12 UK
offshore licences spanning a total of twenty two blocks and part blocks in the
Central and Southern North Sea.

Granby recently gained approval from the Philippines Department of Energy to
complete its farm in to the Galoc Oil Field Development in the Philippines.



END

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