GOIL Granby Oil

    8 June 2007

Granby Oil and Gas plc

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

Anglesey Prospect Farm Out - UKCS Blocks 14/8a, 14/9a, 14/14b

Granby  Oil and Gas plc is pleased to announce that, following consent by the Secretary  of  State
for  Trade  &  Industry ('DTI') , it has completed a Farm in Agreement with Atlantic Petroleum  UK
Limited  ('Atlantic') to farm out 50% of its interest in UKCS block 14/9a (under  Licence  P.1288)
and  block 14/14b (under Licence P.1211). The licences are to be merged by the DTI under a revised
licence  area  covered  by  Licence P.1211.  The blocks contain Granby's Anglesey  prospect  which
consists of a series of tilted Jurassic fault blocks. The blocks are located in around 130m  water
depth,  some  150  km  north-east of St. Fergus, and 30km north of the Talisman-operated  Claymore
field.

Under  the  farm  out  arrangements, Atlantic will acquire a 50% interest in the  merged  licence.
Granby  will retain a total 50% interest in the block although this is expected to reduce  further
as  an  additional farm out is currently under negotiation.  Granby will remain  operator  of  the
licence, where a high resolution 2D seismic survey is currently being acquired.

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

"We very much look forward to working with our new co-venturers Atlantic on the Anglesey prospect.
If  the  current seismic programme confirms the prospect we hope this will lead to  a  well  being
drilled in 2008."

Richard Moreton, Executive Director, said:

"Anglesey is a large prospect in the Outer Moray Firth on the westward oil migration path  out  of
the  Witch  Ground  Graben.  The target reservoirs are upper Jurassic Piper and  Sgiath  reservoir
sands in one of the tilted fault blocks in the prospect."

Participating Interests

Following completion of the farm-out arrangements and the assignment of interests in the  licence,
the participating interests will be:

Company                                                       Participating
                                                                Interest
                                                                    %
Granby                                                                      50
Atlantic Petroleum                                                          50
Total                                                                      100


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

Overview of the Business
Granby  Oil  and  Gas plc (LSE 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.

Granby's next exploration well is expected to be drilled onshore in Yorkshire later in the year.

Granby  has a 54% 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 by early 2008.

Granby  also  has a 9.0% interest in the Monkwell gas field 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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