Exercise of Warrants

Island Oil and Gas PLC
12 May 2006


12 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 178,571 warrants issued in connection with the
Company's December 2005 placing, it has issued and allotted 178,571 new Ordinary
Shares of €0.01 each in the capital of the Company at the subscription price of
Stg£0.70 per share, raising a further Stg£124,999.70. As a result, all 5,937,000
warrants issued in connection with the Company's December 2005 placing have now
been exercised. The exercise of 100 per cent of the warrants has raised
Stg£4,155,900 in total for the Company.

Island has applied for the latest tranche of 178,571 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 17 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 65,141,000.

Enquiries:

Lisa J Newman MCIPR MIRS
Newman Consulting

Tel: [phone]


Ends.



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