GOIL Granby Oil

    26 February 2007

Granby Oil and Gas plc

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

UKCS 15/13b-8 Guinea Exploration Well - Drilling Commenced

Granby  is pleased to announce that drilling operations commenced on the Guinea prospect on  block
15/13b on 24 February 2007.  The well is targeting a Palaeocene prospect in the Balmoral sandstone
with significant oil potential and will be drilled to a total depth of approximately 2,150 metres.
The  well  is  being drilled by the Borgsten Dolphin rig and is operated by Nexen  Petroleum  U.K.
Limited ('Nexen').  Drilling operations are expected to take around 2 weeks.

Nexen  and  Gas  Plus  will together fund the cost of the well to earn a 50%  and  12.5%  interest
respectively  in the 15/13b block.  Granby has a 24.375% interest in the block and  its  share  of
costs will be fully carried by Nexen and Gas Plus.

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

"This  is the second well in our programme this year for the North Sea where, following our recent
24th  Round  success, Granby has an enlarged portfolio of prospects, as well as interests  in  the
Tristan NW and Monkwell fields.  Good progress is also being made on the Galoc development in  the
Philippines."

Richard Moreton, Director of Granby Oil and Gas, said:

"Guinea  is  our  fourth prospect to be drilled, and we are now actively engaged  on  farming  out
several other prospects from our portfolio to expand our exploration drilling programme."

Enquiries:
 Granby Oil and Gas                                    
    David Grassick, Managing Director                  07785 921080
                                                       david.grassick@granbyoil.com
    Richard Moreton, Executive Director                07814 579246
                                                       richard.moreton@granbyoil.com
    Nigel Burton, Finance Director                     07785 234447
                                                       nigel.burton@granbyoil.com
                                                       
 College Hill                                          
    Nick Elwes                                         020 7457 2020
                                                       

Notes to Editors

Background
This  exploration well on block 15/13b is targeting the Guinea prospect, located on a  prospective
trend  in  the  north of the Witch Ground Graben. The block was initially awarded to a  Granby-led
group in the 22nd Licensing Round. Nexen and Gas Plus subsequently agreed to farm in to the block,
leaving Granby and Elixir fully carried for the cost of this exploration well.

Interests in block 15/13b are as follows:

Nexen Petroleum (UK)                     50.00%
Granby Enterprises North Sea Ltd         24.375%
Elixir Petroleum                         13.125%
Gas Plus Italiana SpA                    12.5%


Overview of the Business
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's current acreage comprises interests in a portfolio of offshore licences in the North Sea,
containing  multiple prospects generated by the Company. Granby also has an interest in  a  single
onshore licence in Yorkshire.

In  addition to Granby's exploration well on the Guinea prospect, another well is expected  to  be
drilled onshore in Yorkshire later in the year.

Granby  has a 42% participating interest in the Tristan North West gas development in block 49/29b
in  the  UK  Southern  North  Sea  and  has executed a loan  facility  agreement  with  Mitsubishi
Corporation  for  the  development. A rig has been contracted and  a  tree,  controls  &  flowline
purchased. First gas is expected at the end of 2007.

Granby also has a 9.0% interest in the Monkwell gas field, which consists of two separate dry  gas
accumulations located in UKCS Licence P.001, Block 42/29a.  The field was discovered  in  1989  by
well 42/29-6, which produced gas at a rate of 26.8mmcfd from the Lower Leman Sandstone.  The field
was  appraised  by two further wells which also tested gas.  The operator is actively  progressing
engineering studies on the Monkwell gas field, targeting near-term gas production as a subsea tie-
back to nearby infrastructure.

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.
Development  of  the  Galoc  oil  field is now fully approved by  co-venturers  and  the  relevant
authorities.   First oil production from the field is expected in Q1 2008 at an  initial  rate  of
approximately 15,000 bopd.


                                                                
Granby Oil & Gas plc



                                                                

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