Exercise of Warrants

Island Oil and Gas PLC
04 May 2006


4 May 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 1,017,358 warrants issued in connection with the
Company's December 2005 placing, it has issued and allotted a further 1,017,358
new Ordinary Shares of €0.01 each in the capital of the Company at the
subscription price of Stg£0.70 per share, raising Stg£712,150.60.   To date,
approximately 97% of warrants have been exercised at this stage in the process.

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 10 May 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 64,962,429.

Enquiries:

Lisa J Newman MCIPR MIRS
Newman Consulting

Tel: [phone]

Ends.


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