Schull Well

Island Oil and Gas PLC
27 July 2007


27 July 2007


                        SCHULL WELL REACHES TARGET DEPTH
                        AND ENCOUNTERS GAS-BEARING SANDS


Island Oil & Gas plc ('Island' or the 'Company') today announces that, following
the completion of wireline logging operations, Island-operated gas appraisal
well 57/2-3 ('Well 57/2-3') on Exploration Licence 5/05 (the Schull Field) in
the Celtic Sea, offshore Ireland, has successfully encountered gas-bearing
reservoir sands. The reservoir horizons in the Upper Wealden were encountered at
a measured depth of 2,332 feet MD below the rotary table ('BRT'). Preliminary
interpretation of the well results indicates the following:

•A gross gas bearing reservoir interval of approx 294 feet

•A net gas bearing interval of approximately 73 feet

Well 57/2-3, which was spudded on 14 July 2007, was drilled to its planned total
depth of 2989 feet TVD BRT in just 10 days, ahead of schedule and under budget.
Preparations to conduct testing operations are now underway and a further
announcement will be made in due course.

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.

The Schull Field is located immediately to the southwest of the Seven Heads gas
field and the associated infrastructure linking Seven Heads to the Kinsale Alpha
platform.

Following completion of testing, Providence Resources plc will take possession
of the Petrolia Rig.

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.

Island is involved in an exploration and appraisal programme which in 2006 saw
successful Celtic Sea gas wells at the Old Head of Kinsale and the Seven Heads
Sub-Area.  The Company again secured the Petrolia rig for its 2007 Celtic Sea
drilling programme. This commenced in the second quarter of 2007 with an
appraisal well at the Old Head of Kinsale gas field, followed by the gas
appraisal well at the Schull Field.

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.




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