Seven Heads West Test Results

Island Oil and Gas PLC
29 June 2006


29 June 2006


          ISLAND OIL & GAS PLC ANNOUNCES SUCCESSFUL FIRST WELL OF ITS
                      OFFSHORE IRELAND DRILLING PROGRAMME

Island Oil & Gas plc ('Island' or the 'Company') today announces a successful
gas testing from its first ever well as an independent Irish operator.  
Well 48/23-3 (the 'Well') at the Seven Heads West Sub Area in the Celtic Sea
successfully tested dry gas at a combined maximum rate of 13.2 mm cfpd through a
48/64' choke from two separate Upper Wealden reservoir horizons in the Lower
Cretaceous and, in so doing, the Well has extended the limits of the Seven Heads
gas field further west.

Island has been sufficiently encouraged by the initial results of the well to
take the decision to suspend the Well as a potential gas producer pending
further detailed technical and commercial evaluation of the Well data. It is
expected that the Well data evaluation will be completed later this year at 
which stage a further announcement will be made.

In February 2006, Island concluded a Sub-Area Equity Interest Assignment
Agreement for Seven Heads West (the 'Agreement') with Marathon.  Upon completion
of drilling and testing of the Well, Island has now fully satisfied the terms of
this Agreement and will increase its equity interest in the Seven Heads West
Sub-Area from 12.5% to 55.75%. Well 48/23-3 was spudded on 4 May 2006 in a water
depth of 341 feet and was drilled to its planned total depth of 
3,237 feet TVDss.  Island has operated the well during the drilling and testing 
period but operatorship will now revert back to Marathon.

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

'The successful completion of the highly complex Seven Heads West drilling
operations marks an important milestone for the Company in establishing it as a
successful independent Irish operator. This well marks an exciting and promising
initial step in the Company's two-year drilling programme. The programme will be
the most diverse exploration programme undertaken by any company for several
years as it involves evaluating the hydrocarbon potential of four different
sedimentary basins offshore Ireland.

'Following the successful testing of well 48/23-3, the Petrolia drilling rig
will move shortly to the nearby Old Head of Kinsale gas prospect, southeast of
the Kinsale gas field.  Thereafter, the rig will move to the Inishbeg prospect
in the Donegal Basin. Up to three wells are scheduled to be drilled by the
Company along the exciting Atlantic Margin fairway in 2007.  Island has secured
the semi-submersible drilling unit, Petrolia (owned and operated by Petrolia
Drilling Ltd) for both its 2006 and 2007 programmes; a major achievement in
today's rig markets. This drilling programme reflects the Company's confidence
and long term commitment to exploration offshore Ireland and our desired
objective as an Irish operator of reducing Ireland's present high level of
dependency on imported energy through discovering and developing new hydrocarbon
resources.'


Enquiries:

Lisa J Newman MCIPR MIRS
Newman Consulting

Tel: [phone]


Notes to Editors:

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, and previous press releases, can be found on the
              Company's website at http://www.islandoilandgas.com




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