GOIL Granby Oil

    21 November 2007

Granby Oil and Gas plc

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

Rig slot secured for April/May 2008

Granby  Oil and Gas plc, the oil and gas exploration and production company with interests in  the
UK  North  Sea and onshore Europe, is pleased to announce that it has reached agreement  with  AGR
Petroleum to utilise the semi-submersible drilling rig Transocean Prospect to drill a well in  the
central North Sea.  Drilling is expected to commence around April 2008.

Granby will decide which prospect will be drilled early next year following interpretation of four
new  seismic surveys which were acquired earlier in 2007.  The rig could also be utilised for farm
in to an appraisal or development opportunity.


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

"We  are very pleased to have secured this rig.  Whilst we have yet to identify which prospect  we
plan  to  drill, this rig provides us with  a certain amount of flexibility and opportunities  and
will ensure further drilling activity early next year."


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 (Nominated Adviser)                          020 7418 8900
    Jonathan Marren / Matt Goode                            
                                                            
 College Hill                                               020 7457 2020
    Nick Elwes / Paddy Blewer                               
                                                            

Notes to Editors

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 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% 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
�15 million of cash available to fund further growth of the business.

Granby's  current exploration 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 where an exploration well commenced drilling  on
15 November 2007.

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 Oil & Gas plc



                                                                

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