License Award

Island Oil and Gas PLC
19 March 2008

ISLAND OIL & GAS PLC

('Island' or the 'Company')



License Award




•       Island awarded new frontier license off shore Ireland, Atlantic Margin



•       Island to operate license



•       50% / 50% ownership with Supernova Ireland Resources BV



•       High risk / reward: multi billion barrel prospect





Island Oil & Gas plc, today announces that it has been granted a 50% interest in
Frontier Exploration Licence 3/08 covering blocks 61/9, 61/10 and 62/6 in the
south of the Porcupine Basin adjacent to the Goban Spur.  The Licence, newly
named as the 'Tir na nOg Licence', was awarded in the Porcupine Licensing
Round.  Island will be the operator and Supernova Ireland Resources BV will hold
the remaining 50% interest in the new Licence after a joint bidding process.

The Tir na nOg Licence, which covers an area of approximately 800 square
kilometers, is located in deep water (averaging 1500 meters) on the Atlantic
Margin approximately 250 kilometers off the southwest coast of Ireland.


The Licence contains one very significant exploration prospect, covering an area
of up to 360 square kilometers, which Island believes has the potential to be a
multi-billion barrel target


Frontier Exploration Licence 3/08 is effective from 12 March 2008 and is valid
until 11 March 2021 unless surrendered or revoked. Unless a well is committed to
on or before 12 December 2011, the Licence will expire on 11 March 2012.  The
work programme committed to during the first phase of the licence includes
regional desktop studies, basin modeling work and new seismic acquisition.

Commenting on the award of the new Frontier Exploration Licence, Paul Griffiths,
Chief Executive of Island, stated:


 'This area of the Porcupine and Goban Spur Basins is largely underexplored and
has been tested by one well to date, 62/7-1.  This well was immediately adjacent
to our new Licence and encountered good oil shows.



We believe this Licence potentially contains a high risk/high reward
multi-billion barrel oil prospect.  Any success gained through the planned and
future work being carried out on the Basin by other operators, will
significantly de risk our prospect as well as potentially increase its value.



This acquisition therefore not only adds value to our portfolio today, but will
continue to increase in value over 2008 and 2009.'



19  March 2008






Further information:

Island Oil & Gas plc
Paul Griffiths
Karl Prenderville                                Tel: [phone]
www.islandoilandgas.com

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





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 in both the Celtic Sea
and Atlantic Margin. In addition, it is developing a wider portfolio, with
potentially valuable licences in the Netherlands, Albania and Morocco. Island is
involved in an exploration and appraisal programme which in 2006 and 2007 saw
successful Celtic Sea gas wells at the Old Head of Kinsale, Schull and Seven
Heads Sub-Area.




                      This information is provided by RNS
            The company news service from the London Stock Exchange