Albion Unable to Complete Farm-in Deal with Granby Oil and Gas

Following an announcement by Albion regarding its agreement with Granby involving a farm-in to North Sea licenses, Albion has confirmed that although the proposed farm-in will no longer be used as Albion's 'Qualifying Transaction' (a defined term within the TSX Venture Exchange guidelines), it remains interested in pursuing farm-in opportunities with Granby and Elixir.

The fact that Albion has not been able to complete the original transaction does not affect any of the three firm wells in Granby's exploration program.

However, as Albion has been unable to complete the original transaction in the time allocated, Albion's proposed interest in the forthcoming Guinea well on block 15/13b has been fully taken up by Gas Plus Italiana SpA, which has increased its participating interest in the block on the same terms. Accordingly, there is no commercial impact on Granby or Elixir in respect of the Guinea well which is to be operated by Nexen, with drilling operations expected to commence in early November.

Granby is also pleased to confirm that the 42/28c-G well on Granby's Watling prospect, to be operated by Centrica, is also expected to commence drilling operations in early November.

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

'Whilst we are disappointed that Albion has been unable to complete the original envisaged transaction, this does not affect any of our 3 fully funded wells which are being drilled in the coming months, and we continue to make good progress in farming out other blocks.'