Zag Extension

Island Oil and Gas PLC
01 April 2008



ISLAND OIL & GAS PLC



ISLAND OIL & GAS PLC EXTENDS RECONNAISSANCE CONTRACT IN MOROCCO



Island Oil & Gas plc, (LSE:IOG) ('Island' or the 'Company'), today announces
that San Leon (Morocco) Ltd, the Operator, has been granted a 12 month extension
(the 'Extension') to the Exclusive Reconnaissance Licence (the 'Licence') in the
Zag Basin onshore Morocco, by the Office National des Hydrocarbures et des Mines
('ONHYM'). The extension is effective from 24 December 2007.



The work programme that has been committed to comprises geological and
geophysical studies and the acquisition, processing and interpretation of
aeromagnetic data.



The joint venture partners in the Licence are San Leon (Morocco) Limited (50%),
the designated operator; GB Oil and Gas Ventures Limited.(30%) and Island Oil &
Gas plc (20%).



                                                                    1 April 2008


Further information:



Davy (NOMAD and broker)
Anthony Farrell                                       Tel: [phone]

Landsbanki (UK broker)
Simon Robinson                                        Tel: [phone]

College Hill (Financial PR)
Paddy Blewer                                          Tel: [phone]
Nick Elwes




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