Granite Energy, Inc. Completes Drilling on GoldFinch #1

“Melissa Hensley, 1-17”, the first test well on the Goldfinch Prospect in the Granite Energy 2006-1 drilling program reaches total depth of 8,177 feet in Kingfisher, OK.

Las Vegas, NV (PRWEB) September 26, 2006 -- Granite Energy, Inc. (Nasdaq OTC: GNGI) (the company), today announced its completion of drilling operations on the Melissa Hensley #1-17 well. Located in Kingfisher County, Oklahoma, the Melissa was originally drilled anticipating a total depth (TD) of 8,000 feet; however it was extended to 8,177 feet due to the occurrence of Hunton Sands in the well that had positive shows for Oil and/or Gas. The pre-drill regional studies suggested that the location could potentially yield as many as three (3) zones of oil or gas shows; however, mud-logging activities identified six (6) potentially productive zones. Granite’s engineers have subsequently made a permanent completion in the Mississippian formation after a 9,500+ barrel slick water fracture treatment. Early swab and pump testing of the Mississippian after fracture treatment look extremely promising with good gas and oil rates. Several other pay zones of Pennsylvanian age are developed above the Mississippian and will be tested prudently at a later date.

“We’ve acquired significant acreage in the area, based on extensive regional analysis, and the identification of these additional zones is very favorable for our future drilling program.” Stated S. Matthew Schultz, Granite Energy, Inc.’s Chief Executive Officer. “As the regional test well in our drilling program, obviously the additional zones make the subsequent extension wells very valuable.” Schultz continued.

The company also announced the completion of surface preparation work, and commencement of drilling on the Goldfinch #2, and the Goldfinch #3 extensions.

Granite Energy ("Granite") (NASDAQ OTC symbol: GNGI) is a leading independent energy company headquartered in Las Vegas, NV and focused on oil and gas development, exploration and production. With oil professionals in offices throughout North America, Granite executes on a proprietary business model that enhances the lifecycle for oil producing properties. Granite Energy has growing oil and gas holdings in Texas, New Mexico and Oklahoma. The combination of Granite's methodologies, geological and technical expertise enables Granite to deliver the tangible economic benefits in the acquisition and development of oil and gas fields with both current production as well as exploration and development of new prospects.

For additional information about Granite Energy, Inc., go to www.graniteenergy.com

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995

Statements in this press release relating to plans, strategies, economic performance and trends, projections of results of specific activities or investments, and other statements that are not descriptions of historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, risk factors inherent in doing business. Forward-looking statements may be identified by terms such as "may," "will," "should," "could," "expects," "plans," "intends," "anticipates," "believes," "estimates," "predicts," "forecasts," "potential," or "continue," or similar terms or the negative of these terms. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. The company has no obligation to update these forward-looking statements.

Contact:

Granite Energy, Inc.

S. Matthew Schultz, 801-244-4405

m.schultz @ graniteenergy.com

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