Posting of circular

Island Oil and Gas PLC
24 May 2006


24 May 2006
                                        
                              ISLAND OIL & GAS PLC
                              Posting of Circular
                                        
Island Oil & Gas plc ('Island' or 'the Company') today confirms that further to
its announcement on 16 May 2006 regarding a strategic investment in Island by 
Platinum Petroleum Ltd of up to Stg£21million, the Company has now posted 
a circular to its shareholders providing details of the proposed investment.

Platinum currently holds 15,000,000 ordinary shares in Island, amounting to
approximately 23% of the current issued share capital of 65,141,000 ordinary
shares.  Following completion of all elements of Platinum's proposed investment
in Island, that shareholding may rise to 41.11%.  In order to facilitate the
investment, Island applied to the Irish Takeover Panel for a waiver from any
obligation on the part of Platinum to make a general offer to all shareholders
that might otherwise arise under Rule 9 of the Irish Takeover Rules ('the
Waiver').  The  Takeover Panel has granted the Waiver subject to the approval of
the Independent Shareholders.

The circular, which has been sent to all shareholders, details an ordinary 
resolution asking the independent shareholders of Island to approve the Waiver, 
and contains a notice convening an Extraordinary General Meeting ('EGM') of 
shareholders at the Conrad Hotel, Dublin at 11.30am on 9 June 2006, at which 
approval for the Waiver will be sought. Copies of the circular will be available
for inspection during normal business hours on any weekday (public holidays 
excepted) at the Company's registered office at: 27 Fitzwilliam Square, 
Dublin 2.

The Directors consider the investment by Platinum and the Waiver to be in the
best interests of the Company and the independent shareholders as a whole.
Accordingly, the Directors unanimously recommend that shareholders vote in
favour of the Waiver Resolution to be proposed at the EGM as they intend to do
or procure be done in respect of their own beneficial holdings, which amount in
aggregate to 7,409,461 existing Ordinary Shares, representing approximately
11.4% of the existing issued share capital.


Enquiries:

Lisa J Newman MCIPR MIRS
Newman Consulting

Tel: [phone]

Ends.






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