Rig Update

Island Oil and Gas PLC
29 March 2006


29 March 2006

                              ISLAND OIL & GAS PLC
                          ('Island' or the 'Company')


                                  Rig Update


Island announced in October 2005 that it had executed a drilling contract with
Petrolia Drilling Limited. Island has now been informed by Petrolia Drilling of
the successful completion of the upgrading programme of the semi-submersible
drilling unit, 'Petrolia'. Island has also been advised that the 'Petrolia' rig
has achieved Class Renewal and Safety Class Renewal.

This is a significant step in the progression of Island's 2006 three-well
drilling programme, offshore Ireland. The successful completion of the rig work
should allow the Company, subject to the normal Regulatory consents and
approvals, to spud its planned first well of this year's drilling programme on a
sub-area of the Seven Heads Petroleum Lease in the Celtic Sea during April of
this year, as previously reported.

Paul Griffiths, Chief Executive of Island, commented:

'This completes a major step in the complex process of preparing the Petrolia 
rig for drilling in Irish Waters, subject to the normal Regulatory consents and
approvals. Island's drilling management team can now focus entirely on 
operational matters in preparation for the commencement of drilling operations
during April'


Enquiries:


Lisa J Newman MCIPR MIRS             Tel: [phone]
Newman Consulting                    Email: [e-mail]





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