GOIL Granby Oil

    Friday, 17 March 2006

Granby Oil and Gas plc

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

Galoc Plan of Development Approval

Granby, the oil and gas exploration and production company with interests in
the UK North Sea and the Philippines, is pleased to announce that the
Philippines Department of Energy has approved the Galoc Field Plan of
Development, which was submitted in December 2005.

The Galoc Field lies in the NW Palawan basin offshore Philippines in a water
depth of 320m. The field was discovered in 1981 and produced 385,000 bopd on
long term test in 1988. Team Oil, a wholly owned subsidiary of Granby, farmed
into Block C of Service Contract Area 14 (SC14) in September 2004, and
subsequently exchanged its interest for a shareholding in Galoc Production
Company (GPC).

Granby has a 9.14% indirect interest in the field through its 15.69%
shareholding in the Galoc Production Company which operates the field. First
oil production from the field is expected in 2007 at an initial rate of
approximately 15,000 bopd.

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

"Development Plan approval is an important milestone for the Galoc development
and a significant step towards generating cash flow for Granby."

Enquiries:

Granby Oil and Gas                       020 7653 3660                      
                                                                            
   David Grassick, Managing Director     07785 921080                       
                                                                            
   Nigel Burton, Finance Director        077 8523 4447                      
                                                                            
College Hill                             020 7457 2020                      
                                                                            
   Ben Brewerton / Nick Elwes                                               
                                                                            

Notes to Editors

Background

Overview of Granby

Granby Oil and Gas plc (ticker symbol GOIL) 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. The Group's strategy is to build a
significant portfolio of assets through both discovery and exploitation of oil
and gas reserves.

The Group was created by the combination of Granby Enterprises and Team Oil,
two independent companies formed in 2002 which have had common management teams
and ownership since June 2004. Granby raised �11.5m in 2005, of which �10m was
from a placing and Admission to AIM in June 2005.

The management team includes six 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 exploration programme in the North Sea for 2006
and 2007, and is in the advanced stages of farming out several licences awarded
in the 22nd and 23rd Rounds to enable this to proceed.

The current asset base of Granby comprises interests in 13 UK offshore licences
spanning a total of 23 blocks and part blocks in the Central North Sea, and
containing multiple prospects generated by the Company with an unrisked
potential of 341 million barrels.



END

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