Drilling Contract

Island Oil and Gas PLC
11 April 2006



11 April 2006


                ISLAND OIL & GAS EXECUTES DRILLING CONTRACT FOR
                     MULTI-WELL DRILLING PROGRAMME IN 2007

Island Oil & Gas plc, ('Island'), the technology-led exploration and production
company, today announces that it has executed a further drilling contract with
Petrolia Drilling Limited for the provision of the semi-submersible drilling
unit 'Petrolia' in 2007. The contract is for a 150 day drilling programme.

It is currently anticipated that the 2007 drilling programme will be primarily
focused along the Atlantic Margin off the west coast of Ireland, subject to the
necessary regulatory consents being granted. The remainder of the programme
remains flexible in order to allow for possible appraisal drilling based on a
potentially successful outcome to our 2006 drilling campaign. In addition,
Island is reviewing the opportunity to progress potential new international
ventures in Northwest Europe and North Africa, which are currently being
evaluated.

Further details in relation to the 2007 drilling programme will be announced in
the coming months.


Commenting on the execution of the drilling contract Paul Griffiths, Chief
Executive of Island, stated:

'The execution of the new drilling contract cements the very constructive
working relationship that we have developed with Petrolia Drilling Limited. It
allows us to benefit fully from the huge amount of work that our highly
experienced in-house drilling team, under the guidance of Andrew J. McHardy,
Island's Drilling Project Manager, has put in to assist in preparing the rig for
mobilization for operations in Ireland in coming weeks, subject to the necessary
regulatory consents being granted.

The 2007 drilling programme provides Island with an opportunity to evaluate its
existing prospects, and potential future prospects, along the Atlantic Margin
offshore Ireland and, importantly, to potentially develop an international
spread of exploration and appraisal drilling projects. Rig availability, in a
tight market, gives us significant leverage to use to attract new potential
partners to our extensive portfolio of mature exploration projects at a time
when quality, high risk/high reward exploration targets are in short supply and
rig availability is limited.'


Enquiries:

Lisa J Newman MCIPR MIRS    Tel: [phone]
Newman Consulting           Email: [e-mail]


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