GOIL Granby Oil

    30 November 2007

Granby Oil and Gas plc

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

Galoc sale unconditional

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 the sale of  its  9.14%  indirect
interest  in  the  Galoc  oil  field, offshore Philippines, to Otto  Energy  Ltd.  is  now  wholly
unconditional following approval of the purchase by Otto's shareholders earlier today. Completion,
including receipt of payment, is expected to be on 14 December 2007.

Granby  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.

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

"The  successful  sale  of Galoc, which Granby was instrumental in transforming  from  a  formerly
stranded  discovery  into  a  commercial development that  is  currently  drilling,  very  clearly
demonstrates  our   ability  to  create value for shareholders  through  the  integration  of  our
technical, commercial and financial skills.

Granby has an active drilling programme spanning exploration, appraisal and development with three
wells  currently drilling, and is preparing for at least three more wells in 2008.  Following  the
sale of Granby's interest in the Galoc field, Granby is well positioned to pursue its strategy  to
acquire  other  appraisal and development opportunities in the North Sea, onshore  Europe  and  in
other areas of interest."


Enquiries:
 Granby Oil and Gas plc                                   020 7653 3660 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's current activity includes:

    *       54% interest in the Granby operated Tristan North West gas development in block 49/29b in
        the UK Southern North Sea, which commenced drilling on 27 November 2007
    *       10% interest in the Egdon operated Burton Agnes-1 exploration well onshore in Yorkshire
        which commenced drilling on 15 November 2007
    *        10%  interest in the Dana operated well appraising the Kerloch oil discovery on block
        211/22a NW, which commenced drilling on 21 November 2007.

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 mid 2008 to further appraise the field and to enable a development decision to  be
made.

Granby has executed a Farm-In Agreement to participate with a 10% interest in UK North Sea Licence
P.201 Block 211/22a NW, which contains the Kerloch oil discovery. The field was discovered in 1976
by  well  211/22-1.  The  new appraisal well which commenced drilling on  21st  November  into  an
adjacent fault block is expected to take 30 days to drill.

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.  Granby also has 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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