Licence Extensions

Island Oil and Gas PLC
22 June 2005



PRESS RELEASE

22 June 2005

                             ISLAND OIL AND GAS plc
                               Licence Extensions

Island Oil and Gas plc ('Island'), the technology-led independent oil and gas
exploration and production company, is pleased to announce the extension of
Licensing Options 03/5 and 03/6 in which it holds a 12.5% and a 22% interest
respectively. These interests were part of the portfolio of offshore Irish
assets acquired from Lundin Petroleum AB in a transaction, the completion of
which was announced on 10 June 2005.

The extensions, until 31 December 2005, which have been granted by the 
Petroleum Affairs Division of the Department for Communications, Marine and 
Natural Resources in the Republic of Ireland ('PAD'), will enable the partners 
to complete a detailed work programme to facilitate a decision on future
exploration activity.

Enquiries:

Lisa J Newman MCIPR MIRS Tel: [phone]
Newman Consulting

Ends.




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