GOIL Granby Oil

    11 August 2006
Granby Oil and Gas plc

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

Rig scheduled to drill Watling gas prospect in November 2006

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 reached agreement with Peak  Well  Management
Limited  to  utilise  the  jack  up drilling rig Ensco 92 to drill Granby's  Watling  Rotliegendes
sandstone gas prospect in UKCS block 42/28c. A vessel has also been contracted to conduct the well
location site survey.

Granby  announced previously that it had signed a Heads of Agreement to farm out UKCS Block 42/28c
to  Centrica Resources Limited ("Centrica") and Gas Plus Italiana S.p.A.  Under the terms  of  the
previously announced farm out arrangements, Centrica will be operator of the well. The  well  will
be  drilled  to a depth of approximately three thousand one hundred metres (3,100m) true  vertical
depth.   Drilling  operations are expected to begin in late November and will be managed  by  Peak
Well Management Limited on behalf of Centrica.

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 an exploration well on the Watling prospect to earn 50% and 16.67% interests respectively
in the 42/28c block.  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.

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

"We are very pleased to have secured a rig to drill the Watling prospect so soon. This will be our
second  North  Sea  well  to be drilled this autumn, following behind our  Guinea  well  which  is
scheduled to begin in October."


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
    Nick Elwes                                                      
    Paddy Blewer                                       

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  oil  and  gas
production  and developments. 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. Granby aims to participate in drilling three firm fully funded exploration
wells  by  mid  2007.  All these wells, two offshore and one onshore, are  100%  funded  by  other
companies.

The  current  North  Sea exploration portfolio of Granby comprises interests  in  13  UK  offshore
licences spanning a total of 23 blocks and part blocks in the Central and Southern North  Sea  and
the  Forth Approaches (703,099 acres), containing multiple prospects generated by the Company with
a  net unrisked potential of 362 million barrels. In addition, Granby has a single onshore licence
in Yorkshire.

Granby has also recently announced that it has earned a 35% interest in the Tristan North West gas
development  in  block 49/29b in the UK Southern North Sea subject to acceptance  of  the  licence
assignment  by  the  Department of Trade and Industry ("DTI") and final approval  of  the  finance
package. The development is expected to produce in excess of 30bcf, with first gas potentially  as
early as Autumn 2007 and an economic field life of approximately 5 years.

Peak Well Management Limited

Peak  Well  Management Limited is part of The Peak Group which was acquired in  May  2006  by  The
Ability  Group  (AGR)  of  Norway.   Ability  Group is now  established  as  the  world's  leading
independent well operator.

                                                                
Granby Oil & Gas plc



                                                                

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