Granby and Gas Plus Working Together Onshore Poland

Granby has reached agreement with Gas Plus International B.V. to participate on identical terms with a 50% working interest in two blocks onshore Poland. The blocks have been offered 100% to Gas Plus in the 2007 Polish licensing round by the Ministry of the Environment in Poland. The Polish licensing system is similar to that in the UK, with license fees and minimum work programs but no signature bonuses. Gas Plus has confirmed its intention to accept at least one block. Acceptance of the offers must be confirmed before the end of 2007.

Block 106, which contains discovered oil and gas, and neighboring Block 107, are located in the gas prolific Northern Rotliegendes sub-basin. This basin is an extension of, and has similar geology to, the Southern North Sea gas basin where Granby currently holds eight licenses encompassing 13 blocks/part blocks, including the Granby operated Tristan North West development. The two blocks have a combined area of 1,840 square kilometers (454,664 acres), roughly equivalent to eight UK North Sea blocks.

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

"These applications are part of our strategy to expand beyond the North Sea and to provide an opportunity for our investors to participate in relatively low cost onshore exploration in an area with established infrastructure. We are also very pleased to extend Granby's existing North Sea relationship with GasPlus into Poland."

"The next few months will be very busy for Granby, with drilling operations already underway on the Galoc oil development in the Philippines, our first operated well in the North Sea due to spud in early November on the Tristan NW development, and Granby's first onshore exploration well also expected to begin drilling in November on the Burton Agnes-1 gas prospect in Yorkshire."

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

"Granby is delighted to expand its exploration portfolio by participating in this excellent opportunity to use our knowledge of the European Permian Basin. This will also provide us with access to the onshore rig market within a relatively under-explored part of this proven hydrocarbon province."