Granby Oil & Gas Completes UK Seismic Survey

Granby has completed three seismic survey operations over four of its UK blocks, and has recently commenced an additional fourth survey in block 13/25.

The seismic vessel 'M/V Fugro Meridian' successfully acquired two high density 2D surveys over blocks 9/22, 14/14b and 14/9a, and a third conventional 2D survey over block 16/11a. Approximately 2,600 line kilometers of 2D seismic data were acquired in total and processing of the data has begun and is expected to take around three months to complete.

Granby recently farmed out an interest in blocks 14/14b & 14/9a and retains an interest of 33.34%. As a consequence of the farm out, Granby's share of costs relating to the seismic acquisition on these blocks is fully carried.

Granby has a 50% participating interest in blocks 9/22 and 16/11a.

In addition to the above, the Company is pleased to announce that Granby and its co-venturers in UKCS License P.1404 Block 13/25 have executed an agreement with Petro-Canada UK Limited and Reach Exploration (North Sea) Limited, both licensees of the adjacent License P.1459 Block 13/24d, to participate in a joint seismic survey. This proprietary high resolution 2D seismic survey (approximately 970 line km) is being operated by Petro-Canada and will cover parts of both UKCS blocks 13/24d and 13/25 where shared prospectivity has been identified.

Seismic acquisition is ongoing and it is anticipated that the survey will be completed sometime next week. The total survey costs are estimated to be £0.6 million, of which Granby will contribute 12.5%.

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

"These surveys will help firm up well locations on several prospects in readiness for potential drilling later in 2007 or 2008. We are very pleased to participate in the additional survey with the Petro-Canada led group, which we hope will lead to further cooperation on the exploration of the shared potential of these blocks."

Richard Moreton, Executive Director of Granby Oil and Gas, said:

"These blocks have some very significant potential and the high quality data from these new surveys will help further de-risk the prospects before drilling."