GOIL Granby Oil

    16 November 2007

Granby Oil and Gas plc

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

Burton Agnes-1 Onshore Exploration Well - Drilling Commenced

Granby  is  pleased  to announce that drilling operations commenced on the Burton  Agnes  prospect
(formerly known as 'Fraisthorpe') on licence PEDL071 yesterday, 15 November 2007. Granby has a 10%
interest  in  the licence, with its share of the cost of drilling and testing the  Burton  Agnes-1
well fully carried. The prospect is located near Bridlington in East Yorkshire and situated within
the  Cleveland Basin, in an area where the Lower Permian gas reservoirs of the Southern North  Sea
are  known to extend onshore. The Burton Agnes-1 well is targeting a Leman Sandstone fault  block,
with potentially recoverable reserves (P50) of 43 Billion Cubic Feet of gas (as estimated by TRACS
International in a recent competent persons report prepared for Granby).  Secondary targets  exist
in  overlying  Zechstein  carbonates and deeper Carboniferous  sandstones.   The  well,  which  is
operated  by  Egdon Resources Plc, will be drilled directionally to a total depth of approximately
2,000 metres, and is expected to take around 40 days.

David Grassick, Managing Director of Granby Oil and Gas, said:
"Granby  is pleased to be involved in the Burton Agnes-1 well which is being drilled approximately
seven kilometres to the south of the Caythorpe gas field which produces from the same formation."

Richard Moreton, Executive Director of Granby Oil and Gas, said:
"This  is  Granby's first onshore well in the UK and this attractive licence captures the  onshore
extension of the Southern North Sea Rotliegendes play fairway, in an area that Granby knows  well.
We  are  also  pleased to be working within a new joint venture partnership - in  particular  with
Egdon as operator of this licence."

Enquiries:
 Granby Oil and Gas plc                                     020 7648 4950 or
                                                            0845 2577537
    David Grassick, Managing Director                       07785 921080
                                                            
    Nigel Burton, Finance Director                          077 8523 4447
                                                            
    www.granbyoil.com                                       
                                                            
 KBC Peel Hunt                                              020 7418 8900
 (Nominated Adviser and Broker)
    Jonathan Marren / Matt Goode                            
                                                            
 College Hill                                               020 7457 2020
    Nick Elwes / Paddy Blewer                               
                                                            

Notes to Editors
The co-venturers in the PEDL 071 licence are as follows:

 Company                                                   Interest
 Egdon Resources Plc (Operator)                               25.0%
 Sterling Resources (UK) Limited                              20.0%
 Gas Plus E&P UK Limited                                      17.5%
 Gas Plus O&G UK Limited                                      17.5%
 Granby Enterprises Limited                                   10.0%
 Montrose Industries Limited                                  10.0%
                                                             100.0%


Overview of the Business
Granby  Oil  and  Gas  plc (LSE symbol GOIL) is building a significant oil  and  gas  exploration,
development  and production portfolio in carefully selected areas of the North Sea  and  elsewhere
through technical and commercial innovation.

Granby's Portfolio and Plans
Granby's  current exploration acreage comprises interests in a portfolio of offshore  licences  in
the  North  Sea,  containing  multiple prospects generated by the Company.   As  announced  on  12
October,  Granby also has an option to acquire a 50% working interest in two blocks, one of  which
contains  discovered  oil  and  gas, located in the gas prolific Northern  Rotliegendes  sub-basin
onshore Poland.

Granby owns a 54% participating interest in, and is production operator of, the Tristan North West
gas  development in block 49/29b in the UK Southern North Sea. Mitsubishi Corporation,  which  has
provided  a  loan  facility agreement for the development, and Mosaic Natural  Resources  are  co-
venturers  in  the project.  The first phase of subsea development operations has  been  completed
with  the  flowline and control umbilical installed, hydro-tested and trenched.  Drilling  of  the
single  subsea development well is scheduled to commence in November 2007.  First gas is  expected
in early 2008.

Granby  has  a 9.00% 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. A  new
well is planned for 2008 to further appraise the field and to enable a development decision to  be
made.

Granby  also  announced on 29 October the sale of its 9.14% indirect interest  in  the  Galoc  oil
field, offshore Philippines, to Otto Energy Ltd. The total cash consideration payable to Granby is
USD  $25.5  million,  comprising  US$16.66 million payable at Completion,  repayment  of  existing
Shareholder  Loan  amounts  to  GPC  of  approximately  US$2.59  million,  and  repayment  of  the
approximately US$6.3 million deposit held in escrow with Banca Intesa as security for the  project
financing. In addition, Otto will issue to Granby one million shares in Otto (to be held in escrow
for a period of 12 months) and four million options at an exercise price of 34 cents per share (to
be  held  in escrow for a period of 12 months) and which lapse if not exercised within  24  months
from  their  issue. At the completion of the transaction Granby is expected to have  approximately
�17 million of cash available to fund further growth of the business.




                                                                
Granby Oil & Gas plc



                                                                

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