good news re: galoc, & answer galoc questions, page-17

re: good news galoc, & answer galoc questions forgot to paste it...

Monday 9 May 2005

Granby Oil & Gas Ltd.
60 Lombard Street
London
EC3V 9EA
United Kingdom

tel: +44 (0) 20 7464 8473
fax: +44 (0) 20 7464 8828

Email: [email protected]



Granby Oil & Gas has recently been created through the merger of two companies: Granby Enterprises and Team Oil.

Granby Enterprises and Team Oil, although two separate entities had a common shareholder structure and management team. Five of the management team are highly experienced former executives of Enterprise Oil plc, whilst the Chairman and Finance Director both have significant listed company and City experience. The strategy of the management is to create a balanced Exploration and Production (E&P) company with a strong exploration portfolio and producing assets.

Granby, established in 2002, has developed a highly attractive UK North Sea exploration portfolio with net prospects of over 300mmbbl (risked net reserves of approximately 70mmbbl). The first exploration well in block 21/6b is due to be drilled in the summer of 2005.

Team Oil, founded in 2003, has focused on a number of development and production opportunities in South East Asia. In September 2004 Team Oil signed a farm in agreement to participate in the Galoc field development in the Philippines, subject to financing. Negotiations with a partner willing to finance and manage development and production of Galoc are at an advanced stage.

The combination of Granby Enterprises and Team Oil has the potential to build substantial value during 2005 and beyond. This can initially be achieved through:

1. farming out the 22nd Round awards with a portfolio of nine blocks and establishing a drilling programme on farmed out prospects
2. applying for more acreage in the 23 rd Round
3. the drilling by Century of the fully carried first well targeting the 'Marquis' prospect on Block 21/6b awarded to Granby in the 21 st Round and
4. successful development of the Galoc field in the Philippines

Other opportunities in both the North Sea and elsewhere are already arising, some of which are expected to provide scope to create additional value as part of a growing E&P business. A pre-IPO funding round is well advanced, and preparations have begun for an IPO in mid 2005.