GOIL Granby Oil

    28 January 2008

Granby Oil and Gas plc

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

Tristan NW Development Well Drilling Completed

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 provide an operations update for the Tristan NW gas
development project in the UK Southern North Sea.

The  49/29b-11 well has now been drilled to a Total Depth of 11,514 feet (3,509 m) Measured  Depth
which  includes a 778 feet (237 m) horizontal section in the reservoir.  The well encountered  the
Leman  sandstone reservoir very close to the prognosed depth with good gas shows in the  reservoir
section  as  expected.  The well has been logged with approximately 700 feet  of  reservoir  sand.
Well completion operations to install production tubulars and the subsea tree have now commenced.

Operations  were  delayed  by  bad weather and drilling equipment problems,  but  well  completion
activities  are  still expected to be completed before the planned arrival of the  Diving  Support
Vessel in late February 2008 required for the flowline tie-in.

As a result of the delays, Granby expects to contribute a further �3.5 million, in addition to the
�2.5  million already contributed, towards the project.  Despite this additional sponsor  support,
the  Board  believes  that  the  project  economics have improved  since  project  sanction  as  a
consequence of rising gas prices. The net present value of Granby's 54.00% interest in the project
following this contribution is currently estimated to be approximately �13.4 million.

First  gas is now expected to be in April 2008 (previously March 2008) although progress  will  be
dependent on the weather conditions for the remaining well work and diving operations.

The  Directors  can  confirm  that the above information has been  reviewed  by  Richard  Moreton,
Executive Director, who has over 23 years experience as a geophysicist within the oil industry.

David Grassick, Managing Director of Granby Oil & Gas plc, said
"Granby has a strong balance sheet, and expects to end the current financial year on 31 March with
approximately  �11  million  of  uncommitted cash. Granby already has  three  further  UKCS  wells
drilling  in  2008, including the Monkwell appraisal well. The Board expects to  maintain  a  high
level of exploration and appraisal activity, and is actively looking for opportunities to grow the
business."


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

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 operated Tristan NW gas development due on stream April 2008
    *       Strong cash position, with over �11 million expected at end March 2008
    *       Three UKCS wells drilling in 2008, including Monkwell appraisal well
    *       Exploration portfolio with net unrisked P50 potential of 321 million barrels

Granby's Portfolio and Plans

In  additional to the recent Kerloch discovery, Granby's current activity includes a 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 and is expected to begin production  by  April
2008.

In 2008 Granby expects to drill at least three further wells, including a fully funded exploration
well on 9/22 and the appraisal of Monkwell.

Granby  has  a  20% 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 26.8mmscfd 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'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  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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