Share option scheme

Lansdowne Oil & Gas plc
26 July 2006



26 July 2006






                            Lansdowne Oil & Gas plc

                         ('Lansdowne' or 'the Company')



Adoption of Share Option Scheme and grant to Director



The Directors of Lansdowne announce that they approved the adoption of a new
Share Option Scheme ('the Scheme') earlier today.  The principal terms are as
follows:

-    all employees and Directors (but not non-executive directors) are eligible 
     for the scheme but must be eligible at time of grant and at the time of 
     exercise except in certain circumstances including death, redundancy or 
     retirement at normal retirement age;

-    individual limit under the Scheme in 12 month period prior to date of grant 
     of one times annual remuneration (including bonus but excluding benefits in 
     kind);

-    exercise period between three and ten years after date of grant;

-    exercise price to be not less than market value at date of grant;

-    Remuneration Committee to set relevant performance criteria;

-    Options to be granted in 42 day period following adoption of the Scheme, 
     the announcement of interim and preliminary results and any date
     the Board resolves that special circumstances exist; and

-    Scheme limit five per cent. of issued share capital from time to time.



In addition, under the Scheme the Company may grant 'super' options which can be
exercised between five and ten years from date of grant.  The performance
criteria for 'super' options must be more demanding than standard options.  The
Scheme allows a further five per cent. of issued share capital from time to time
to be granted by way of 'super' options i.e. the overall Scheme limit is 10 per
cent. of issued share capital from time to time.



The Directors also announce that it has granted today, share options to Steve
Boldy, Chief Executive Officer over 200,000 Ordinary Shares at an exercise price
of 85p per share, which is equivalent to the flotation price, subject to certain
performance targets being met.  Following the award of these options, Dr Boldy
has a total holding of 200,000 options and 32,660 Ordinary Shares, representing
0.16 per cent. of the issued share capital of the Company.



The Board considered it appropriate that Dr. Boldy should be awarded the
aforesaid options prior to the commencement of the drilling of the well on the
Inishbeg Prospect in the Donegal Basin, which is now expected in mid to late
August.





ENQUIRIES:


Lansdowne Oil & Gas plc
Chris Moar                            Director                     01224 352200








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