GOIL Granby Oil

    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.


                                                                
Granby Oil & Gas plc



                                                                

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