Schull Test Results

Island Oil and Gas PLC
08 August 2007



8 August 2007


                              ISLAND OIL & GAS PLC
                      ANNOUNCES SUCCESSFUL SCHULL GAS WELL


Island Oil & Gas plc ('Island' or the 'Company') (LSE:IOG) is pleased to
announce that the Island-operated gas appraisal well 57/2-3 ('Well 57/2-3' or
'the Well') on Exploration Licence 5/05 (the Schull Gas Field) in the Celtic
Sea, offshore Ireland has successfully tested dry gas at a rate of 21 million
standard cubic feet per day ('mmscfpd') through a 72/64' restricted choke size,
with absolute open flow potential of 40 mmscfpd. The gas was produced from Upper
Wealden reservoirs between 2,332 feet Measured Depth ('MD') and 2,599 feet MD
below the rotary table ('BRT').

HIGHLIGHTS:

•The well encountered a gross gas column of 292 feet, significantly
 greater than that prognosed pre-drilling.

•Reservoir encountered 84 feet high to prognosis

•Additional, previously untested, reservoirs discovered by the Schull
 well provide follow-up potential in offset structures on the Schull Licence

•Positive drilling results upgrade the Schull Gas Field to a
 potential standalone development.


FORWARD PROGRAMME:

Well 57/2-3 is being suspended as a potential gas producer.

Island is now commissioning a commercial and engineering study to determine the
optimum development scenario for the Schull, Old Head and West Seven Heads gas
fields. It is currently anticipated that this study will include the potential
for using at least one of the gas fields as a gas storage facility to allow for
an increase in winter gas production at a time when gas prices are traditionally
higher. Another option being evaluated is the use of one of the gas fields as a
potential, short-term, national strategic gas reserve. The options being
investigated are designed to maximize the value of the potential gas reserves
and of the additional infrastructure that would be required to develop the gas
fields. These options are subject to the consents and approvals of the
Department of Communications, Marine and Natural Resources, in accordance with
the normal procedures required.

The Petrolia Rig will now be handed over to Providence Resources plc.

Island has a 62.5% interest in the Schull Field, where it is partnered by
Valhalla Oil and Gas Limited with a 25% interest and EnCore Oil plc with a 12.5%
interest.

Commenting on the test results, Paul Griffiths, Chief Executive of Island,
stated:

'We are delighted with the positive drilling results from Schull which have
added a new dimension to the Celtic Sea gas gas play in an area that had
previously remained under-explored. Our 2006 and 2007 drilling programmes have
delivered four successful gas wells which now form the basis for growing our
Celtic Sea gas business. '


Enquiries:

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


Paul Griffiths
Chief Executive
Island Oil & Gas plc
Tel: [phone]


Anthony Farrell
Davy
Tel: + 353 1 679 6363



Notes to Editors:

Island was founded in 2003 and listed on AIM in December 2004 (LSE:IOG).  The
Company has interests in eleven Irish offshore licences, as well as licences in
the Netherlands and Morocco.

This drilling update has been reviewed and approved by Paul Griffiths, Chief
Executive of Island.  Paul Griffiths is a geology graduate of the Royal School
of Mines, Imperial College London, and is a member of the Petroleum Exploration
Society of Great Britain. He has 30 years experience in the oil and gas
exploration sector and is a qualified person as defined in the guidance note for
Mining Oil & Gas Companies, March 2006 of the London Stock Exchange.

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



                      This information is provided by RNS
            The company news service from the London Stock Exchange