2007 Drilling Slot Assignment

Island Oil and Gas PLC
25 September 2006


25 September 2006

ISLAND ASSIGNS DRILLING SLOT TO PROVIDENCE FOR 2007 DRILLING PROGRAMME OFFSHORE
                                    IRELAND

Island Oil & Gas plc ('Island' or the 'Company') today announces that it has
reached agreement with Providence Resources P.l.c. ('Providence'), the AIM and
Dublin IEX listed oil & gas exploration and production company, for the
provision to Providence of the semi-submersible drilling unit 'Petrolia' in
2007. In April 2006, Island announced that it had contracted a 150 day drilling
programme. Under the terms of an agreement reached between Island and
Providence, Island will assign 1 firm drilling slot to Providence in 2007. A
further slot may become available in 2007 depending on the duration of the
respective drilling programmes being carried out by the two companies.

Separately, Providence and Island have agreed that they will work together to
develop a common strategy report for the joint development of the companies'
Celtic Sea oil assets based on a shared floating production facility. This
report will be undertaken at Providence's cost and will be based on the
extensive work Providence has conducted on floating facilities in the Celtic
Sea, suitably modified to take into account the differing reservoirs for joint
development purposes and economic savings. The assets to be included in this
study incorporate each company's Celtic Sea oil assets.

Commenting on today's announcement, Paul Griffiths, Chief Executive of Island
said:

'The assignment of one rig slot allows Island to share the high costs of
mobilization / de-mobilisation. We are also delighted to have reached agreement
with Providence on a joint development study for the oil assets in the Celtic
Sea. The combination of our respective experience and technical know how should
allow us to further progress the portfolio of oil assets in the Celtic Sea.'

Tony O'Reilly jnr, Chief Executive of Providence said:

'We are delighted to have reached agreement with Island to secure a rig slot in
2007, utilising the Petrolia Rig. This now allows Providence to progress its
drilling plans offshore Ireland for 2007, further details of which will be
announced in the coming months.


Enquiries:


Island Oil & Gas plc:


Lisa J Newman MCIPR MIRS
Newman Consulting                        Tel: + 44 (0)7747 462 574


Providence Resources P.l.c.:


Tony O'Reilly jnr., Chief Executive      Tel: + 353 (1) 667 5740
Providence Resources P.l.c.


Powerscourt Media
Victoria Brough                          Tel: [phone]


Murray Consultants
Pauline McAlester                        Tel: + 353 (1) 498 0300



Notes to Editors:

About Island

Island was founded in 2003 and listed on AIM in December 2004.  The Company has
interests in eleven Irish offshore licences, (six as operator and two as
technical manager).   The Company is involved in an active exploration and
appraisal programme with three wells drilled in 2006, two of which were
successful gas discoveries.  The Company has also secured the Petrolia rig for
its planned 2007 drilling programme.


Further information on Island can be found on the Company's website at
http://www.islandoilandgas.com.


About Providence


Providence is an independent oil and gas exploration company listed on the AIM
market in London and on Dublin's IEX market. The Company was founded in 1997,
but with roots going back to 1981 when it predecessor company, Atlantic
Resources Plc was formed by a group of investors led by Sir Anthony O'Reilly.


Providence's active oil and gas portfolio includes interests in Ireland
(offshore), the UK (onshore and offshore) and West Africa (offshore Nigeria).
Providence's portfolio is balanced between production, appraisal and exploration
assets, as well as being diversified geographically. Recent corporate
announcements include; Gardline Geosurveys Ltd Survey (announced September 15th,
2006); 20% Farm-out Deal agreed with CMI on Celtic Sea Licences (announced
September 5th, 2006), Completion of Dunquin Seismic (announced on August 8th,
2006), Annual General Meeting Statement (announced on June 20th, 2006), Annual
Results (announced on May 17th, 2006), Dunquin Farm-out to ExxonMobil (announced
on February 13th, 2006), a €50 million Revolving Credit Finance Facility with
Macquarie Bank (announced on February 2nd, 2006) and increased production at its
Singleton oilfield (announced March 7th, 2006).


Comprehensive information on Providence and its oil and gas portfolio, including
its 2005 AIM Admission document, 2005 Annual Report, Interim Report 2005 and
recent press releases are available from Providence's website at
www.providenceresources.com




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