Grove Energy listing on AIM dec/04

Grove Energy Limited
20 December 2005

Grove Energy Limited

Date: December 20, 2005
NEWS RELEASE

________________________________________________________________________________
GROVE TO MERGE ITS UK NORTH SEA E&P ASSETS TOGETHER WITH NIDO AND VIRGO TO
CREATE VIRGO ENERGY PLC
________________________________________________________________________________

• Virgo to have a UK North Sea focus
• Diversified portfolio of 24 blocks and operator of 11 blocks
• Virgo intends to list on AIM 1st half 2006

Grove Energy Limited (Grove) advises that it has entered into a definitive Heads
of Agreement (HOA) with Virgo Energy Limited and Nido Petroleum Limited (Nido)
to merge their UK E&P assets and to subsequently list the combined company on
the Alternative Investment Market (AIM) of the London Stock Exchange plc during
the first half of 2006. The new London based company will be called Virgo
Energy plc (Virgo).

Virgo will be focused in the UK North Sea E&P sector and will hold interests in
24 exploration blocks, comprising four in the Northern North Sea, five in the
Central North Sea and 15 in the Southern North Sea. These blocks represent
3,344 square kilometres (gross) and 1,482 square kilometres (net). Of the 24
exploration blocks, nine will be contributed by Virgo, seven by Grove and eight
by Nido.

Virgo's portfolio will be of sufficient size and diversity to ensure an
aggressive and active 2006 exploration program while mitigating risk by
portfolio diversification.

An independent Chairman and industry experienced CEO are soon to be appointed to
the board of Virgo. In addition, Grove and Nido will each appoint one board
member and Virgo Energy Limited will appoint two. On a pre-IPO basis Grove will
hold a 27.5%, interest, Nido 25% and Virgo 47.5%.

Grove believes that its shareholders will benefit from the merger - any success
by Virgo will immediately add value to Grove; Grove's shareholders gain exposure
to a more diversified portfolio of UK North Sea assets which will be funded by
Virgo, whilst Grove will continue to focus on its European and Mediterranean
assets.

Virgo Energy Limited is a private, UK based, E&P company established on 23
February 2004 to invest in offshore oil and gas exploration and extraction in
the UK North Sea and is the operator of six of the nine blocks being contributed
to the merger. The nine blocks contributed by Virgo Energy Limited represent
its entire portfolio of E&P assets. Further details about Virgo Energy Limited
may be found at the company's website:
www.virgoenergy.com
.

Nido is an Australian based E&P company, listed on Australian Stock Exchange
Limited. Nido's core areas are in the Philippines and the North Sea. Further
details regarding Nido may be obtained on the company's website:

www.nido.com.au
.

Grove is listed on the TSX-V and on AIM in London with a focus on Europe and the
Mediterranean basin. Grove's E&P assets are located in UK, Italy, Tunisia,
Romania and Slovenia. Further information about Grove may be obtained on the
company's website:
www.groveenergy.com
.

For further information regarding this HOA, please contact either of the
following company representatives:

Virgo Energy Limited

Peter Dolan,
pdolan@virgoenergy.com,
+44 7740 083 932

Grove Energy Limited

Glenn Whiddon,
glenn@groveenergy.com,
+44 208 429 7478

Nido Petroleum Limited

David Whitby,
dwhitby@nido.com.au,
+61 8 9321 2844


Follow the link below to view the full press release containing the map of the
Virgo Energy North Sea E&P Assets