Drilling Operations Commence

Island Oil and Gas PLC
04 May 2006



4 May 2006

                         ISLAND OIL & GAS PLC ANNOUNCES
                    COMMENCEMENT OF 2006 DRILLING OPERATIONS

Island Oil & Gas plc ('Island' or the 'Company') today announces that it has
spudded well 48/23-3 at Seven Heads West in the Celtic Sea offshore Ireland. The
well is the first in its planned 2006 and 2007 drilling programmes.

Well 48/23-3 is designed to appraise a possible extension of the Upper Wealden
gas sands that are producing gas in the 48/24-6 production well immediately to
the east. The well, which is in a water depth of 329 feet, will be drilled to a
planned total depth of 3,200 feet TVD ss.

Island concluded a Sub-Area Equity Interest Assignment Agreement for the Seven
Heads West area with Marathon International Petroleum Hibernia Limited, through
its wholly-owned subsidiary Marathon Seven Heads Limited (formerly Ramco Celtic
Sea Ltd) in February 2006. Under the Agreement, Island will fund 100% of the
cost of the current well, including testing, in return for increasing its equity
interest in the Seven Heads West, Sub-Area, from 12.5% to 55.75%.  Island will
operate the well during the drilling period but operatorship will revert back to
Marathon once the drilling of the well has been completed.

Well 48/23-3 is being drilled using the semi-submersible drilling unit,
Petrolia, owned and operated by Petrolia Drilling Limited, under contract to
Island. Subject to regulatory consents and approvals, Island intends to move the
rig after the completion of the 48/23-3 well to the nearby Old Head of Kinsale
prospect, to drill 49/23-1, the second well of its 2006 three-well programme.
The rig then moves on to the Donegal Basin for its planned third well, which
will be operated by Lundin.


Commenting on the commencement of the 2006 drilling programme, Paul Griffiths,
Island's Chief Executive, said:

'The commencement of drilling operations at Seven Heads West marks a significant
milestone in the development of Island Oil & Gas plc as it seeks to establish
its credentials as a competent operator capable of managing and delivering an
ambitious drilling programme over the next two years in Irish waters and,
potentially overseas. Our decision to enter into long-term drilling contracts
for 2006 and 2007 is paying dividends as rigs are currently becoming
increasingly difficult to source. We anticipate that our ability to operate
together with the availability of a rig in 2007 will open up a number of new and
potentially exciting opportunities for the Company in the near future.'


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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