Granby Oil & Gas plc
LSE : GOIL

February 28, 2008 02:35 ET

Granby Oil and Gas plc: Tristan NW Gas Development Successfully Drilled and Tested

LONDON, UNITED KINGDOM--(Marketwire - Feb. 28, 2008) - Granby Oil and Gas plc ('Granby' or 'the Company' or 'the Group') (LSE:GOIL), the oil and gas exploration and production company with interests in the UK North Sea and onshore Europe, is pleased to announce that the Granby operated Tristan NW production well in the UK Southern North Sea has been successfully drilled and tested, and that the Ensco 80 rig is preparing to move off location.

The 49/29b-11 subsea horizontal well has now been completed and flow tested at a rate of 30 mmscfd (million standard cubic feet per day) (0.85 mcmd (million cubic metres per day)) with a calculated Absolute Open Flow (AOF) potential of 48 mmscfd (1.36 mcmd) in line with expectations and comfortably within the modelled range. The 796ft horizontal section was successfully placed higher in the gas leg than originally planned and penetrated very high net to gross formation. Whilst the estimated bottom hole pressure of approximately 2,300psi (pounds per square inch) is at the lower end of modelled outcomes, the projected production volume and profile are both within the target range.

The Diving Support Vessel 'Osprey' required for the flowline tie-in is currently scheduled to arrive in early March 2008.

First gas is still expected to be in April 2008, although progress will be dependent on the
weather conditions for the remaining diving operations.

Granby has a 54% interest in the Tristan NW development.

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

'We are delighted to have completed flow testing our first development well and look forward to establishing our first production shortly. The Company's next exploration well, in which Granby has a carried interest of 25%, is expected to be drilled in May on the Globe prospect in Block 9/22.'

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

Notes to Editors

Overview of the Business

Granby Oil and Gas plc (LSE: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.

Contact Information

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