Drilling Contract

Island Oil and Gas PLC
19 October 2005



PRESS RELEASE


                                19 October 2005



 ISLAND OIL AND GAS EXECUTES DRILLING CONTRACT FOR DRILLING OFFSHORE IRELAND IN
                                      2006



Island Oil and Gas plc, ('Island'), today announces that it has executed a
drilling contract with Petrolia Drilling Limited for the provision of the
semi-submersible drilling unit 'Petrolia'.



The contract is for a three well drilling programme, two of which will be
drilled in the Celtic Sea, offshore Ireland in 2006. It is anticipated that
Island's first well will commence drilling, subject to the necessary regulatory
consents being granted, on or about 1st April 2006.



Further details in relation to the drilling programme will be announced in due
course.


Commenting on the execution of the drilling contract Paul Griffiths, Chief
Executive of Island, stated:


 'The execution of the drilling contract with Petrolia Drilling Limited, less
than ten months following Island's introduction to AIM, accelerates the
Company's progress towards evaluating the substantial portfolio of exploration
interests that the Company has established offshore Ireland over the past two
years. The multi-well programme is consistent with Island's synergy-based
approach to appraisal and exploration drilling which is designed to reduce
project costs and increase the potential to add real value to our portfolio
through exploration success '



Enquiries:

Lisa J Newman MCIPR MIRS                   Tel: [phone]
Newman Consulting                          Email: [e-mail]






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