Acquisition

Island Oil and Gas PLC
08 May 2007


                              ISLAND OIL & GAS PLC


 ISLAND CONCLUDES ACQUISITION OF MINORITY PARTY INTERESTS ON THE SCHULL FIELD,
                                OFFSHORE IRELAND


Island Oil & Gas plc ('Island' or the 'Company') (LSE:IOG) announced on 24 April
its intention to acquire an additional 20% interest in the Island-operated
Schull gas field, ('Schull') in the Celtic Sea, offshore Ireland from the
minority partners  This acquisition has now been completed and Island now has a
shareholding of 62.5% in Schull, prior to any decision by EnCore Oil plc ('
EnCore') to exercise its option to acquire a further 7.5%, under farmout and
option agreements concluded between Island and EnCore in April 2007.

Under the terms of the agreement, Island will acquire a 20% interest (6.667%
from Bexley Investments Limited, 6.667% from Carob Limited and 6.666% from
Celtex Exploration Services Limited).

Separately, Valhalla Oil and Gas Limited ('Valhalla') will acquire a 25%
interest in the Schull gas field from minority partners (8.33% from Bexley
Investments Limited, 8.33% from Carob Limited and 8.34% from Celtex Exploration
Services Limited).  Valhalla will immediately participate pro-rata in the
Island-operated appraisal well, 57/2-3, on the Schull gas field this summer.

The agreements are subject to approval from the Irish Minister for
Communications, Marine and Natural Resources.


Enquiries:

Lisa J Newman
Newman Consulting

Tel: [phone]


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.

The current interests in the Schull gas field are: Island 62.5%; EnCore Oil plc
12.5%*; Valhalla 25%.

* EnCore is also granted an option to acquire an additional 7.5% interest,
subject to certain conditions.

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



8 May, 2007


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