GOIL Granby Oil

    16 November 2006

Granby Oil and Gas plc

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

Granby increases its carried interest in Watling Prospect, Block 42/28c

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  to  acquire  TGS-NOPEC
Geophysical  Company  UK  Ltd's ('TGS-NOPEC') 11.1% carried interest in UKCS  block  42/28c  which
contains the Watling gas prospect. This agreement increases Granby's carried interest in the block
to  33.3%. Granby bid against a number of other companies in an auction arranged by TGS-NOPEC. The
consideration, contingent on a commercial discovery, consists of a net royalty of approximately 4%
and success fees not exceeding �0.3m.

As previously announced on 31 March 2006, Granby and TGS-NOPEC farmed out Block 42/28c to Centrica
Resources  Limited  ("Centrica") and Gas Plus Italiana SpA ("Gas  Plus").  Centrica  will  be  the
operator  of an exploration well on the Watling prospect. 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 or early December 2006. Granby's share of costs (including
for this acquired interest) will be carried by Centrica and Gas Plus.

Block 42/28c was awarded as a promote licence to Granby and TGS-NOPEC 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 kilometres  east
of Flamborough Head in a water depth of approximately 55 metres.

The  assignment  of TGS-NOPEC's interest to Granby is subject to the consent of the  Secretary  of
State for Trade & Industry.


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

"We  are  delighted  to  increase  our carried interest in the  Watling  prospect  where  drilling
operations will begin shortly."

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,
and an additional �9m in a placing in August 2006.

Granby's portfolio and plans
Granby is planning a multi-well exploration programme in the North Sea for 2006 and 2007, with two
fully  funded  wells  expected to begin drilling during December (testing the Guinea  and  Watling
prospects) and a third in the New Year, and is in the advanced stages of farming out several other
licences awarded in the 22nd and 23rd Rounds.

Granby's  current acreage 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, containing
multiple  prospects  generated by the Company. Granby also has an interest  in  a  single  onshore
licence in Yorkshire.

In  addition,  Granby  has  a  9.14% indirect interest in the Galoc field,  offshore  Philippines,
through its 15.69% shareholding in the Galoc Production Company ('GPC') which operates the  field.
Formal  sanction of the development and approval of the Work Programme and Budget up to first  oil
by  all the participants is expected shortly.  First oil production from the field is expected  in
late 2007 at an initial rate of approximately 15,000 bopd.

                                                                
Granby Oil & Gas plc



                                                                

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