AGM Statement

Island Oil and Gas PLC
19 January 2007


19 January 2007


                              ISLAND OIL & GAS PLC


                        Annual General Meeting Statement


At the Annual General Meeting of Island Oil & Gas plc (IOG) ('Island' or the
'Company') being held today in Dublin, Island is updating shareholders on the
Company's proposed 2007 drilling programme and priorities for the coming year.
Island's strategic focus will be upon bringing forward the value of its project
portfolio by accelerating the commercialisation of key projects through further
alliances with major industry partners and an active farmout programme.


Island has built an extensive project portfolio offshore Ireland in the Celtic
Sea and on the Atlantic Margin, and has added strategic international projects
during 2006. Having proved up the value of a number of its projects through
detailed technical studies, and through two successful gas wells in the Celtic
Sea, the Company's priority during 2007 is to continue its farmout programme for
a number of near-development and exploration projects both on the Atlantic
Margin, where Island has multi-tcf gas prospects in the Slyne and Rockall
Basins, and in the Celtic Sea where the Company's projects are located within
easy access of existing infrastructure. Island has received a good deal of
interest from a number of parties and will seek to farmout to partners who will
commercialise value through accelerated development programmes, thus minimising
Island's costs and accelerating the movement of projects through to cashflow
generation.


Island's ability to secure strategic industry partnerships has already been
demonstrated through its

Cooperation Agreement with EnCore Oil plc in October 2006 covering the future
development by both companies of their respective portfolios of exploration and
near- development interests both in Ireland and the UK. Island also announced in
September 2006 that Island and Providence Resources plc would develop a common
strategy report, which is nearing completion, at Providence's expense, for the
joint development of the companies' Celtic Sea oil assets based on a shared
floating production facility.


This year's drilling programme, for which Island has already secured the
Petrolia Rig, will continue to focus upon a pre-development well at the Old Head
of Kinsale in the Celtic Sea, where drilling is expected to commence late in the
second quarter of this year. The rig will then move to the Schull Licence to
drill a well on a potential gas structure.



Speaking at the AGM, Bryan Benitz, Chairman of Island, states:


'The past year has seen a major transformation in Island. The Company has built
a valuable portfolio of interests offshore Ireland, adding to its acreage in the
highly prospective Atlantic Margin. Island also distinguished itself as an
accomplished operator and has fully delivered upon its stated intention of
adding an international element to the portfolio through the addition of
projects in the Netherlands and a fully carried interest in Morocco. In the
Netherlands, the Company is the first of our size to be named, on the back of
our successfully executed Celtic Sea drilling programme, as an 'approved
operator' of a field development.


'We are now focusing on bringing forward the value in the portfolio by farming
down our interests in projects and seeking to secure farm-in partners. We have
had great interest from the industry in a number of our projects, and in
particular our Atlantic Margin portfolio. We are actively seeking farm out
agreements with those partners focused upon moving projects quickly forward
towards commerciality.'


Enquiries:


Lisa J Newman
Newman Consulting

Tel: [phone]
     [phone]


     For further information on Island, please see the Company's website at
                         http://www.islandoilandgas.com
                                        
                                        


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