Old Head of Kinsale

Island Oil and Gas PLC
13 July 2006


13 July 2006

          ISLAND OIL & GAS COMMENCES DRILLING AT OLD HEAD OF KINSALE,
                                OFFSHORE IRELAND

Island Oil & Gas plc ('Island' or the 'Company') today announces that it has
spudded well 49/23-1 (the 'well') on Exploration Licence 4/05 (the Old Head of
Kinsale) in the Celtic Sea, offshore Ireland. The well is being drilled using
the Petrolia rig (the 'rig'), owned and operated by Petrolia Drilling Limited
under contract to Island. Island is operator with a 100% interest.

Well 49/23-1 was spudded on the evening of 12 July 2006 in a water depth of 286
feet and is planned to be drilled to a total depth of approximately 4,220 feet.

Subject to regulatory consents and approvals, the rig will move after the
completion of the 49/23-1 well to the Donegal Basin where it will drill a well
on the Inishbeg prospect in Frontier Exploration Licence 1/05 located on the
Atlantic margin


Enquiries:

Lisa J Newman MCIPR MIRS
Newman Consulting

Tel: [phone]


Notes to editors:

Island was founded in 2003 and listed on AIM in December 2004. The Company has
interests in nine Irish offshore licences, (four as operator and two as
technical manager), including one producing gas field.

 Further information on Island can be found on the Company's website at 
                     http://www.islandoilandgas.com



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