GOIL Granby Oil

    31 March 2006

Granby Oil and Gas plc

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

UKCS Block 42/28c Watling Prospect Farm Out

Granby, the oil and gas exploration and production company with interests in
the UK North Sea and the Philippines, is pleased to announce that it has signed
a Heads of Agreement to farm out UKCS Block 42/28c to Centrica Resources
Limited and Gas Plus Italiana S.p.A. Block 42/28c contains Granby's Watling
prospect, which lies close to the developed gas fields of Wollaston, Whittle,
Cleeton, and Ravenspurn North.

Block 42/28c was awarded as a promote licence to Granby and TGS-NOPEC
Geophysical Company UK Ltd in the 23rd Licence Round in September 2005. The
Watling prospect was identified in a study undertaken by Granby of open acreage
in the southern gas basin of the North Sea. The block is located some 35 km
east of Flamborough Head in a water depth of approximately 55m.

Under the farm out arrangements, Centrica and Gas Plus will together fund the
full cost of drilling and testing an exploration well on the Watling prospect
to earn a 50% and 16.67% interest respectively in the 42/28c block. The
exploration well will be operated by Centrica, which is currently sourcing a
rig for a multi-well programme including Watling, and will be drilled to a
depth of approximately three thousand one hundred metres (3,100m) true vertical
depth subsea to target the Rotliegendes sandstone gas prospect. Granby will
retain a 22.2% interest in the block and its share of costs will be carried by
Centrica and Gas Plus. TGS NOPEC has also farmed out its interest on a similar
basis and will retain an 11.1% interest.

The Heads of Agreement are subject to execution of a fully termed farm-in
agreement, to be completed shortly. Assignment of the licence interests to
Centrica and Gas Plus is subject to the approval of the Secretary of State for
Trade & Industry.

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

"We are extremely pleased to have successfully farmed out our first 23rd Round
block so quickly and very much look forward to working with Centrica, who will
operate the exploration well, and Gas Plus Italiana, who are joining us in
their first venture in the North Sea."

Participating Interests

Following completion of the farmout arrangements and the assignment of
interests in the licence, the participating interests will be:

Company                                          Participating Interest %    
                                                                             
Granby Enterprises Ltd                                    22.2222            
                                                                             
TGS-NOPEC Geophysical Company UK Ltd                      11.1111            
                                                                             
Centrica Resources Limited                                50.0000            
                                                                             
Gas Plus Italiana S.p.A.                                  16.6667            
                                                                             
                                                         100.0000            

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.

Overview of Gas Plus Italiana SpA

Gas Plus Italiana S.p.A. is an Italian independent natural gas Company within a
vertically integrated Group active in the exploration, production, trading,
retailing and distribution gas business, and is the third largest Italian
operator in terms of domestic gas production produced from 39 concessions, 26
of which as "operator".



END

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