Exercise of Warrants

Island Oil and Gas PLC
17 July 2007


17 July 2007

                              Island Oil & Gas plc
                              EXERCISE OF WARRANTS


Island Oil & Gas plc ('Island' or the 'Company') is pleased to announce that,
following the exercise of 1,302,397 warrants issued in connection with the
Company's May 2007 placing, it has issued and allotted 1,302,397 new Ordinary
Shares of €0.01 each in the capital of the Company at the subscription price of
Stg£0.45 per share, raising approximately £586,079.

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 23 July 2007. The new Ordinary Shares will rank pari
passu with the existing Ordinary Shares of the Company.


Enquiries:

Lisa J Newman MCIPR MIRS
Newman Consulting

Tel: [phone]


Ends.

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