AIM Admission

Island Oil and Gas PLC
07 December 2004



7 December 2004

                              Island Oil and Gas plc

                         Admission of Ordinary Shares to trading on AIM

Island Oil and Gas plc ('Island or the 'Company'), an independent oil and gas
exploration company, today announces that its Ordinary Shares have been admitted
to AIM, a market operated by the London Stock Exchange.

Island, founded in 2003, has interests in a number of licences and options off
the west coast of Ireland and to the south of Ireland in the Celtic Sea. The
portfolio includes a number of existing discoveries such as the undeveloped
Connemara Field in the Porcupine Basin. The Directors believe that the current
oil price warrants a full review of these assets. The Directors also believe its
licence position in the Celtic Sea is ideally suited to maximise the opportunity
afforded by the current demand for natural gas and the infrastructure located at
the Kinsale and Seven Heads gas fields. Island also intends to examine the oil
play that exists beneath the Seven Heads and Kinsale Head fields. It has
concluded deals with both Ramco and Marathon to allow this to be achieved.

Apart from its portfolio of interests offshore Ireland, Island continues to
examine opportunities in other regions where it can maximise benefits through
the application of its technical skills and knowledge.

The Island management team has extensive experience in managing oil and gas
exploration and production projects through many countries, as well as in
investment and finance.

The Company is very well capitalised and has approximately Stg£9m in cash
available to pursue the opportunities in its portfolio. The bulk of this was
recently raised through a Stg£8.24m placing to a range of investors.

Copies of the Company's AIM admission document will be available, free of
charge, from Eversheds LLP, Senator House, 85 Queen Victoria Street, London EC4V
4JL, and from O'Donnell Sweeney, One Earlsfort Centre, Earlsfort Terrace, Dublin
2, Ireland for the period of one month from the date of admission

Davy is acting as nominated adviser and broker to Island.

Paul Griffiths, Chief Executive and Technical Director of Island, commented:

'We are delighted to see the Company's shares commence trading on AIM. We
believe that the AIM listing will give us an increased profile and assist in the
development of the existing project portfolio, whilst allowing us to capitalise
upon future opportunities.'

For further information, please contact:

Newman Consulting                   [phone]
Lisa J Newman                       [phone]

Davy
Ivan Murphy                         [phone]





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