GOIL Granby Oil

    17 March 2008

Granby Oil and Gas plc

("Granby" or "the Company" or "the Group")

Tristan NW Gas Development Update

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 provide an update on the Granby operated Tristan NW
development in the UK Southern North Sea.

As  previously announced on 28 February 2008, the 49/29b-11 well has been successfully tested, and
the  Ensco  80 rig was preparing to move off location.  The rig move was subsequently  delayed  by
adverse  sea and weather conditions but departed the well location and went off contract 17.52  on
Friday 14 March 2008.

The  Acergy  operated  Diving Support Vessel 'Osprey' arrived at the Davy  platform  location  and
commenced  diving  operations  required for the tie-in of the  Tristan  NW  flowline  and  control
umbilical on 8 March 2008.

First  gas  is  still  expected to be in April 2008, although progress remains  dependent  on  the
weather and sea conditions for the outstanding diving and tie-in operations.

The extended delays, together with those resulting from equipment failures during the drilling  of
the well, have resulted in an increase in project costs. As a result, Granby expects to contribute
a  further  �4.0  million  towards the project, in addition to the �6.0 million  indicated  on  28
January  2008  as already contributed or committed. The Board believes that the net present  value
(NPV10)  of  Granby's  54%  interest  in the project following  this  additional  contribution  is
currently  estimated  to be approximately �14.2 million, after allowing  for  the  effect  of  the
additional expenditure, the results of the well test and current market gas price projections.

After allowing for these additional costs, Granby expects to end the current financial year on  31
March with approximately �7.3 million of uncommitted cash.

However, the additional costs of the Tristan NW project have exceeded the funding available to the
smaller  partner  in  the  project and so it is probable that Granby  will  be  required  to  fund
approximately �1.9m of costs on the partner's behalf in return for which Granby would  acquire  an
additional 10.3% interest in the project for no additional consideration. Whilst this would have a
positive overall impact on the value of the Tristan NW development to Granby, it would also reduce
the  amount  of cash available to the remainder of the business and therefore impact  on  Granby's
work programme prior to the arrival of significant revenues from Tristan NW from early 2009.

David Grassick, Managing Director of Granby Oil & Gas plc, said
"We  are  pleased that the Acergy Osprey has arrived on location on schedule to begin  the  tie-in
work and we look forward to our first production from the Tristan NW field shortly after that work
is completed."

The  Directors can confirm that this announcement has been reviewed by David Grassick MA  (Cantab)
and  member  of  SPE, who has over 27 years of experience as a Petroleum Engineer within  the  oil
industry.


Enquiries:
 Granby Oil and Gas plc                                     020 7648 4950 or
                                                            0845 2577537
    David Grassick, Managing Director                       07785 921080
                                                            
    Nigel Burton, Finance Director                          077 8523 4447
                                                            
    www.granbyoil.com                                       
                                                            
 KBC Peel Hunt                                              020 7418 8900
 (Nominated Adviser and Broker)
    Jonathan Marren / Matt Goode                            
                                                            
 College Hill                                               020 7457 2020
    Nick Elwes / Paddy Blewer                               

Notes to Editors

Overview of the Business
Granby  Oil  and  Gas  plc (LSE symbol GOIL) is building a significant oil  and  gas  exploration,
development  and production portfolio in carefully selected areas of the North Sea  and  elsewhere
through technical and commercial innovation.

    *       Granby operated Tristan NW gas development due on stream April 2008
    *       Three UKCS wells drilling in 2008, including the Monkwell appraisal well and Globe
            exploration well
    *       Exploration portfolio with net unrisked P50 potential of 321 million barrels

Granby's Portfolio and Plans

In  additional to the recent Kerloch discovery, Granby's current activity includes a 54%  interest
in the Granby operated Tristan North West gas development in block 49/29b in the UK Southern North
Sea, which is expected to begin production in April 2008.

In 2008 Granby expects to drill at least three further wells, including a fully funded exploration
well  on  UKCS  block  9/22 in which Granby has a 25% carried interest and the  appraisal  of  the
Monkwell gas field.

Granby  has  a  20% interest in the Monkwell gas field in UKCS Licence P.001, Block  42/29a.   The
field was discovered in 1989 by well 42/29-6, which produced gas at a rate of 26.8mmscfd from  the
Lower Leman Sandstone.  The field was appraised by two further wells which also tested gas.  A new
well is planned for 2008 to further appraise the field and to enable a development decision to  be
made.

Granby's  current exploration acreage comprises interests in a portfolio of offshore  licences  in
the  North  Sea, containing multiple prospects generated by the Company.  Granby also  has  a  50%
working  interest in two blocks, one of which contains discovered oil and gas, located in the  gas
prolific Northern Rotliegendes sub-basin onshore Poland.

                                                                
Granby Oil & Gas plc



                                                                

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