Granby: Tristan NW Gas Development Successfully Drilled and Tested

Granby Oil and Gas plc, the oil and gas exploration and production company with interests in the UK North Sea and onshore Europe, reported that the Granby operated Tristan NW production well in the UK Southern North Sea has been successfully drilled and tested, and that the Ensco 80 rig is preparing to move off location.

The 49/29b-11 subsea horizontal well has now been completed and flow tested at a rate of 30 mmscfd (million standard cubic feet per day) (0.85 mcmd (million cubic metres per day)) with a calculated Absolute Open Flow (AOF) potential of 48 mmscfd (1.36 mcmd) in line with expectations and comfortably within the modelled range. The 796ft horizontal section was successfully placed higher in the gas leg than originally planned and penetrated very high net to gross formation. Whilst the estimated bottom hole pressure of approximately 2,300psi (pounds per square inch) is at the lower end of modelled outcomes, the projected production volume and profile are both within the target range.

The Diving Support Vessel 'Osprey' required for the flowline tie-in is currently scheduled to arrive in early March 2008.

First gas is still expected to be in April 2008, although progress will be dependent on the weather conditions for the remaining diving operations.

Granby has a 54% interest in the Tristan NW development.

David Grassick, Managing Director of Granby Oil & Gas plc, said, "We are delighted to have completed flow testing our first development well and look forward to establishing our first production shortly. The Company's next exploration well, in which Granby has a carried interest of 25%, is expected to be drilled in May on the Globe prospect in Block 9/22."

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