Award of new licence

Island Oil and Gas PLC
09 April 2008




Island Oil & Gas plc


ISLAND AWARDED Q13b EXPLORATION LICENCE, OFFSHORE NETHERLANDS

•  New license awarded offshore Netherlands adjacent to IOG operated Amstel
   field development

•  Very low development costs due to Amstel tie back

•  12.4 million barrels estimated oil in place on licence

•  2,641 bopd flowed on licence from one well

•  Drilling programme designed to capture development and exploration
   upside


Island Oil & Gas plc (LSE:IOG) ('Island' or the 'Company') today announces that
the Minister of Economic Affairs of the Netherlands has awarded the Q13b
Exploration Licence (the 'Licence') to Island Netherlands B.V. ('INBV'), a
wholly owned subsidiary of Island, and Aceiro Energy B.V. Island, the designated
operator, will hold a 100% working interest in the Licence. The Licence is
effective from 19 March 2008 and is valid for five years

Island intends to file a request with the Minister of Economic Affairs in the
Netherlands for splitting the Licence into a shallow (oil) and deep (gas) part
defined by the top of the Trias stratigraphic marker. Island will operate the
shallow part with a 100% equity interest and Cirrus Energy Nederland B.V. will
operate, on behalf of its partner Petro-Canada  Netherlands B.V., the deep part
in which Island will have no equity interest.

The Q13b Exploration Licence covers an area of 369 sq. km. and contains the
northern part of the Zaan Field, a Lower Cretaceous field with up to 12.4
million barrels of gross oil in place based on material balance calculations
generated by the Operator NAM following testing of the Q13-4 discovery well.
Q13-4 flowed at an initial rate of 2,641 bopd from three separate oil-bearing
intervals.

The Q13-5 well on the Licence also encountered oil shows in the Lower
Cretaceous. An area covering 3.7 sq. km., approximately the area of the Zaan
Field, lies untested updip from the Q13-5 well and will be the subject of
further evaluation by Island.

The Q13b Exploration Licence further contains the NW-extension of the
Wassenaar-Zee field, where in 1980 the Wassenaar-Zee 01 well tested some 400
bopd, and several untested structures.

The Licence work programme includes the drilling, subject to technical and
commercial justification, and testing of an appraisal well in the Zaan Field in
the second year of the Licence and a further test well in the third year of the
Licence

The Zaan Field and the Q13-5 Appraisal Prospect  are located within the West
Netherlands Basin, a prolific oil and gas province in which, to date, over 1.3
billion barrels of oil-, and 3 tcf of gas-, in place have been encountered. Both
structures, if successfully appraised, are anticipated to be developed as
satellite tie-backs to Island's Amstel field development project.

Commenting on the Licence Award, Paul Griffiths, Chief Executive of Island
stated:

'Island is delighted with the award of this licence as it adds potential
additional recoverable oil resources to the Amstel development hub via the
projected tie-back of the Zaan Field.

Our low entry cost, which reflects our approved operator status, and our
established position in the Amstel development project, creates a significant
development upside from any additional reserves increases, at a time of buoyant
oil prices.'


                                                                   09 April 2008
Further information:

Island Oil & Gas plc
Paul Griffiths
Karl Prenderville                               Tel: [phone]
www.islandoilandgas.com


Davy (NOMAD and broker)
Anthony Farrell                                 Tel: [phone]


Landsbanki (UK broker)
Simon Robinson                                  Tel: [phone]


College Hill (Financial PR)
Paddy Blewer                                    Tel: [phone]
Nick Elwes





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