AGM Statement

Island Oil and Gas PLC
01 March 2006


                                      

1 March 2006

                              ISLAND OIL & GAS PLC

                                 AGM STATEMENT


Island Oil & Gas plc ('Island'), the technology-led independent exploration and
production company, held its first AGM at 11.30 am today in the Conrad Hotel in
Dublin.


At today's meeting, in his opening remarks Bryan Benitz, non-executive Chairman
of Island, commented:


'The past year has seen your Company continue to successfully acquire and
develop what we believe is an outstanding portfolio of Irish oil and gas
interests, including nine previous oil and gas discoveries and an interest in a
producing field.   We are now, subject to the normal regulatory consents and
approvals, preparing to embark upon our three-well drilling programme, starting
early in the second quarter of this year, and plan to drill wells at Seven Heads
and the Old Head of Kinsale in the Celtic Sea, as well as the Inishbeg prospect
in our Donegal Basin Frontier Exploration Licence.


'Having moved to a position as a gas production company through our acquisition
of a 12.5% interest in the Seven Heads Petroleum Lease last year, we are pleased
to report that we have now received some Stg£1.2 million in gas sales receipts
from Seven Heads.  The gas sales revenue of more than Stg£700,000 received for
the 7 month period from the 1 August 2005 to 28 February 2006 is significantly
ahead of the Stg£480,000 reported in Island's full year results which reflected
gas sales covering the 10 month period 1 October 2004 to 31 July 2005. The
knowledge acquired as a result of our access to the production data over this
period has greatly enhanced our understanding of the Seven Heads field.


'Following our conclusion of a Sub-Area Equity Interest Assignment Agreement for
the Seven Heads Petroleum Lease with Marathon International Petroleum Hibernia
Limited ('Marathon') last month, we will shortly commence the drilling of a well
to test a possible extension of the gas field in that Sub- Area, to the west of
the 48/24-6 producing well.  In return for funding 100% of the drilling cost of
the well, Island's equity interest in the Sub-Area will increase from 12.5% to
55.75% as a result of earning half of the interest held by Marathon through its
wholly owned subsidiary Ramco Celtic Sea Limited.


'During 2004 and 2005, Island was one of only two operators to apply for
licenses in the Porcupine and Rockall Licensing Rounds off the west coast of
Ireland. Island was successful in obtaining the acreage that it had identified
as holding significant exploration potential, and as a result we now hold a
strategic acreage position stretching some 400 kilometers from the Donegal
Basin, through the Rockall Basin, to the Porcupine Basin. The recent
announcement by ExxonMobil in respect of their entry into the Porcupine Basin
offshore Ireland supports Island's decision to create a second core area off the
west coast of Ireland. Our acreage position in this area is currently attracting
industry interest during 2006, particularly as we will be drilling in the
Donegal Basin this year.


'With an active drilling programme about to commence, alongside decisions on
further exploration activity planned for next year, we believe that Island is
currently in an excellent position to enhance returns to our shareholders during
the year.'


Enquiries:

Lisa J Newman MCIPR MIRS
Newman Consulting
Tel: [phone]


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




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