Granby and Petro-Canada Agree to Cross Assignment in UKCS Quad 13

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 announce that Granby and its co-venturers in UKCS License P.1404 Block 13/25 have completed an assignment with Petro-Canada UK Limited and Reach Exploration (UK) Limited, licensees of the adjacent License P.1459 Block 13/24d, to cross assign interests in the two licenses.

Granby previously held a 25% interest in License P.1404 Block 13/25. After the cross assignment, Granby has a 12.5% interest in License P.1404 and a 12.5% interest in License P.1459 Block 13/24d. Both Licenses will be operated by Petro-Canada.

As previously announced on Aug. 6, 2007, a proprietary 970 line kilometer high resolution 2D seismic survey operated by Petro-Canada was acquired over parts of both blocks 13/24d and 13/25 where potential prospects underlying both blocks have been identified.

Following the License cross assignment, participating interests in the Licenses P.1404 (Block 13/25) and P.1459 (Block 13/24d) are: Petro-Canada UK Ltd (Operator) with 45%, Faroe Petroleum (U.K.) Ltd with 25%, Granby Enterprises Ltd with 12.5%, Elixir Petroleum UK Ltd with 12.5% and Reach Exploration (UK) Limited with 5%.

Application has been made to the Secretary of State for Business, Enterprise and Regulatory Reform (BERR) to merge these two licenses into a single traditional license.

"We are very pleased to have concluded this agreement with the Petro-Canada led group which will facilitate future exploration of the shared prospects on these blocks," said David Grassick, managing director of Granby. "The cross-assignment helps consolidate our position in this highly prospective hydrocarbon region where we now have five contiguous blocks and part blocks."