Drilling Update

Lansdowne Oil & Gas plc
30 August 2006

                                                                  30 August 2006



             Lansdowne Oil & Gas plc ('Lansdowne' or 'the Company')



           Drilling update: Well 13/12-1(Inishbeg), offshore Ireland


Lansdowne today announces that the Inishbeg frontier exploration well (13/12-1)
operated by Lundin Petroleum AB ('Lundin'), which was spudded on 22 August 2006,
has been plugged and abandoned.

Under the terms of a farm-out agreement, Lansdowne was fully carried through all
the costs associated with the drilling of the well by subsidiaries of Island Oil
and Gas plc and Petroceltic International plc.


Steve Boldy, CEO of Lansdowne, commented as follows:

'The frontier Inishbeg well was recognised to be a high risk, but potentially a
high impact, opportunity. Despite the fact we were carried through the drilling
of the well, this is a disappointing outcome.

Our efforts will now concentrate on our prospects in the shallow water
(generally less than 100m) Celtic Sea, off the south coast of Ireland.'

Participants in Block 13/12 are Lundin (30.00% and operator), Island Oil and Gas
(31.00%), Lansdowne Oil & Gas (19.25%), Petroceltic International (16.25%) and
Sunningdale Donegal Basin Limited  (3.50%).


ENQUIRIES:

Lansdowne Oil & Gas plc
Steve Boldy, CEO                                 01224 352200

College Hill
Nick Elwes / Paddy Blewer                        020 7457 2020


www.lansdowneoilandgas.com


This drilling update has been reviewed and approved by Steve Boldy, Chief
Executive of Lansdowne. Steve Boldy is a geology graduate with a Ph.D from
Trinity College Dublin and is a member of the Petroleum Exploration Society of
Great Britain. He has 26 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.



Notes to Editors:

Lansdowne's strategy is to be an exploration / appraisal promoter focussing on
shallow water - low cost high value opportunities, identifying and working up
opportunities and then farming them out to achieve a carry through the drilling/
project phase.  The Company will generally seek to retain 15-30% non-operator
stakes in its assets.



Celtic Sea

Lansdowne holds four assets in the Celtic Sea, lying in water depths of
generally less than 100 metres. This portfolio has been built up with the
overall strategic objective of identifying gas prospects, which if successful,
could be produced through a tie-back into the existing Seven Heads and Kinsale
infrastructure, subject to access rights being agreed. Three of the assets are
considered as gas plays - the Midleton Licensing Option, the Rosscarbery
Licensing Option and the East Kinsale Licensing Option.

In addition Lansdowne holds the Seven Heads Oil Licensing Option over the deeper
Cretaceous Wealden oil bearing reservoirs (restricted to a depth below
approximately 1,250m (4,000 feet) sub-sea) in the Seven Heads acreage.




                      This information is provided by RNS
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