Granby Oil and Gas plc, the oil and gas exploration and production company with interests in the UK
North Sea and the Philippines, announces its interim results for the six months ending 30 September 2006.
Highlights
In the six months to 30 September 2006, Granby has:
• farmed out a part interest in UK Block 15/13b to Nexen Inc and Gas Plus in exchange for a full carry of Granby’s remaining 23.375% interest. The well, which will explore Granby’s Guinea prospect, is expected to begin drilling in December 2006
• completed farm out arrangements with Centrica and Gas Plus for UK Block 42/28c where a well to explore Granby’s Watling prospect is expected to begin drilling in December 2006
• announced a farm in with a 10% carried interest to UK onshore licence PEDL071 where a well is planned for early 2007
• farmed out a 10% interest in blocks 14/8a, 14/9a and 14/14b to Atlantic Petroleum (subject to DTI consent)
• completed a placing of 10.7 million ordinary shares of 0.5p at a price of 84p per share to raise £9.0 million (before expenses of £0.4 million)
Since 30 September 2006, Granby has:
• completed the acquisition of the Group’s second development project, Tristan North West, from ExxonMobil and executed a loan facility agreement with Mitsubishi Corporation for the development
• completed the financing arrangements for the development of the Galoc oil field in the Philippines which is now fully approved by co-venturers and the relevant authorities
• recorded its first reserves, of 0.90 million barrels, on the Galoc field (up 38% from the 0.65 million barrels of contingent resources previously recognised)
• increased its carried interest in the Watling prospect in block 42/28c from 22.2% to 33.3% through acquisition of TGS-NOPEC’s carried participating interest
Financial highlights
• Loss before tax £0.9 million (2005: Loss £0.9 million)
• Cash at 30 September 2006 £13.6 million (30 September 2005: £9.5 million, 31 March 2006: £7.3 million)
Resource highlights
• Unrisked and risked resources down 13% and 6% respectively since Annual Report approval on 21 August to 314 million barrels unrisked and 61 million barrels risked as a result of additional technical work, partly offset by the addition of the onshore licence PEDL071
David Grassick, Managing Director of Granby Oil and Gas, said:
“Granby continues to make good progress, especially against an industry background of rising costs and a shortage of resources and materials. We now have two development projects, Galoc and Tristan NW, financed and underway and we are scheduled to participate in two more exploration wells before the end of 2006, with further exploration drilling activity planned for next year.”