Holding(s) in Company

Island Oil and Gas PLC
26 June 2006


26 June 2006

                              Island Oil & Gas plc
                              Holdings in Company

Island Oil & Gas plc ('Island' or the 'Company') is pleased to announce that the
Stg£4.5 million Convertible Loan Notes subscribed for by Platinum Petroleum Ltd
('Platinum') have now been converted into 4.5 million Ordinary Shares of €0.01
each in the Company ('Ordinary Shares') at a conversion price of Stg£1.00 per
Ordinary share.

As a result of this conversion, Platinum's shareholding in the Company is
increased to 19.5 million Ordinary Shares representing some 28% of the
69,641,000 shares in issue.

Island has applied for these 4.5 million 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 29 June 2006.

In addition, Platinum has been issued with 4.5 million warrants to subscribe for
Ordinary Shares, each of which are capable of being exercised at a price of
Stg£1.10 per Ordinary Share, at any time in the 12 month period ending 9 June
2007.

Enquiries:

Lisa J Newman MCIPR MIRS
Newman Consulting

Tel: [phone]

  For further information on the Company and access to previous announcements,
    please refer to the Company's website at http://www.islandoilandgas.com



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