Exercise of Warrants

Island Oil and Gas PLC
03 April 2006

                              Island Oil & Gas plc

                              EXERCISE OF WARRANTS




Island Oil & Gas plc ('Island' or the 'Company') is pleased to announce that,
following the exercise of 514,643 warrants issued in connection with the
Company's December 2005 placing, it has issued and allotted a further 514,643
new Ordinary Shares of €0.01 each in the capital of the Company at the
subscription price of £0.70 per share, raising approximately £360,250.


Island has applied for these new Ordinary Shares to be admitted to trading on
the AIM market of the London Stock Exchange and trading in these shares is
expected to commence on 7 April 2006.  The new Ordinary Shares will rank pari
passu with the existing Ordinary Shares of the Company and will increase the
number of shares in issue to 60,675,980.




Enquiries:


Lisa J Newman MCIPR MIRS

Newman Consulting


Tel: [phone]






3 April 2006




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