Granby farms out of UKCS blocks 9/22, 23c

Granby has signed a binding Heads of Agreement with Valiant Petroleum Limited (’Valiant’) to farm out a 25% interest in Licence P.1208 UKCS blocks 9/22 and 9/23c in the North Sea.

Under the agreed terms, Valiant will fund 100% of the drilling costs of an exploration well up to £7 million. Granby will retain a 25% interest. The exploration well is to be drilled in 2008.

Licence P.1208 contains multiple prospects, several of which were covered by new high resolution 2D seismic survey acquired by Granby during 2007. Processing of the new data from this survey is nearly complete and interpretation is to commence shortly.

The assignment of interests is subject execution of a fully termed Farm in Agreement and to approval of the Secretary of State for the Department of Business, Enterprise and Regulatory Reform (DBERR) to the assignment of Licence interests to Valiant.