Granby acquires interest in Tristan North Sea block

Offshore staff

LONDON -- Granby Oil and Gas Plc acquired 50% interest in block 49/29b, UK southern North Sea, which includes the Tristan North West gas development.

ExxonMobil sold the interest in the area, which Granby expects will produce more than 30 bcf over a 5-year life, with production possibly starting as early as the second half of 2007.

Mosaic Natural Resources Ltd. will acquire the remaining 50% interest in the block under an agreement signed in 2005.

The acquisitions are subject to Department of Trade and Industry acceptance.

Granby says it provided technical and commercial assistance to Mosaic, including the introduction of an un-named financial partner.

Terms call for the partner to fund most of the Tristan North West development, which is expected to cost approximately $80 million, whilst the partner will acquire at a later date from Granby and Mosaic, a 30% equity interest in the project. Granby and Mosaic each will retain a 35% interest in the project.

8/2/06