Anglesey Prospect ? Second Farm Out, UKCS Blocks 14/9a, 14/14b
19 Juni 2007 - 9:00AM
UK Regulatory
19 June 2007
Granby Oil and Gas plc
("Granby" or "the Company" or "the Group")
Anglesey Prospect - Second Farm Out, UKCS Blocks 14/9a, 14/14b
Further to the announcement on 8 June 2007, Granby is pleased to announce that it has signed a
Farm in Agreement with Fox Energy Exploration Limited ('Fox Energy', a subsidiary of Fox Petroleum
Inc. www.foxpetro.com) to farm out a 16.66% interest in UKCS blocks 14/9a and 14/14b (Licence
P.1211 and P1288). The Licences are currently in the process of being merged by the Department of
Trade and Industry. Under the farm out arrangements, Atlantic Petroleum ('Atlantic') is also
farming out on the same basis, such that Fox Energy will acquire, in total, a 33.33% interest in
the merged licence. Granby will remain operator of the licence and will retain a total 33.34%
interest.
A high resolution 2D seismic survey is currently being acquired over the licence area in order to
confirm the prospect and to select a well location.
In consideration of the assignment, which is subject to the consent of the Secretary of State for
Trade and Industry, Fox Energy will pay 100% of the costs of the seismic survey.
Granby and Atlantic have also granted Fox Energy an option to acquire an additional 26.67% of the
licence after completion of the high resolution seismic processing by paying 46.67% of the costs
of an exploration well (in addition to Fox Energy's 33.33% obligation), thereby carrying 10% of
the well costs for each of Granby and Atlantic. In the event that the option is exercised by Fox
Energy, Granby and Atlantic would each retain a 20% interest in the licence.
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 Claymore field.
David Grassick, Managing Director of Granby Oil and Gas, said:
"Granby is pleased to welcome Fox Energy as a co-venturer in this licence and to have the costs of
our seismic acquisition and processing programme for this licence fully carried."
Richard Moreton, Executive Director, said:
"Acquisition of the high resolution 2D seismic on the licence is going well, and is important for
defining a potential well location on the Anglesey prospect, which is a large prospect in the
Outer Moray Firth."
Participating Interests
Following completion of the farm-out arrangements and the assignment of interests in the merged
licence, the participating interests will be:
Company Participating
Interest %
Granby 33.34
Atlantic Petroleum 33.33
Fox Energy Exploration 33.33
Total 100.00
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
KBC Peel Hunt (Nominated Advisor)
Jonathan Marren / Matt Goode 020 7418 8900
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 current exploration acreage comprises interests in a portfolio of offshore licences,
mainly in the Central and Southern North Sea, containing multiple prospects generated by the
Company. Granby also has an interest in a single onshore licence in Yorkshire where an
exploration well is expected to be drilled onshore in Yorkshire later in 2007.
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. Drilling is expected to begin in September with the jack up
drilling rig Ensco 100 and first gas is expected in 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 is also pursuing additional opportunities to acquire near term developments and production,
both in the North Sea and in selected areas overseas.
The Company expects to participate in the Burton Agnes-1 exploration well (for which Granby's
costs are fully carried) in Yorkshire in 2007, and currently intends to continue its active
exploration programme with the aim of drilling a further six exploration prospects identified on
its current acreage over the next two years, subject to rig availability and farming out.
Furthermore, Granby will participate in drilling three production wells, one on Tristan North West
which will be the Company's first operated well, and two on Galoc, before the end of 2007. Both
Galoc and Tristan North West are planned to be on stream soon after the wells are completed.
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