AGM Statement

Island Oil and Gas PLC
16 January 2008


Island Oil & Gas plc
'Island' or the 'Company'


AGM Statement


At the Company's AGM held today in Kinsale, county Cork, Ireland, Brian Benitz,
Non Executive Chairman made the following statement.


The past year has been an extremely active and operationally successful year for
the company. Island has made significant progress towards one of it's major
goals of monetising our near term development assets, realising value for our
shareholders.


The Company has further enhanced its reputation as an operator with another
successful drilling campaign in the Celtic Sea.  We have delivered on our stated
aim of farming out the  Atlantic Margin acreage in order to accelerate drilling
activity and have brought in exceptionally high quality partners.


Island has ventured into the international arena acquiring both proven oil
reserves and high potential exploration acreage. Our new acquisitions are based
on both sound geological reasoning and commercial potential. We believe that
they have been and will continue to be value enhancing for the company;
spreading our risk and exposing the portfolio to attractive new regions where
there is serious international interest from major players.


We acknowledge that the share price performance has been disappointing despite
our successes, steady newsflow and an active investor relations programme. The
Board believes that this has been primarily as a result of factors affecting the
AIM market as a whole, particularly smaller companies who, without significant
production, are not benefiting from the nearly $100 per barrel oil price we are
currently seeing. The days of high valuations for pure exploration are over -
hence our drive to monetise assets and acquire projects with shorter lead times.


The company has demonstrated the quality of its acreage by attracting OMV and
the Bluewater Group into the Atlantic Margin and more recently Beach Petroleum
into our offshore Albanian Licence. We are continuing with our strategy of
farming down our interests in projects and securing farm-in partners with the
potential to accelerate activity and add significant value.


This years activity will focus on preparation of Field Development Plans for the
Amstel Oil Field in Holland and the Schull and Old Head Gas Fields in the Celtic
Sea with the aim of first production in the fourth quarter of 2009, subject to
market conditions. Additionally the Company is planning a 3D seismic programme
over it's highly prospective Killala and Slyne prospects in the Atlantic Margin.
This will commence late in the second quarter, subject to finalisation of the
contract and vessel availability. Island will also continue with its evaluation
of the Connemara Oil Field and opportunities to acquire producing assets in
Moldova and the former Soviet Union.


We believe that 2008 could be a transformational year for Island. Production,
backed by strategic acquisition and asset development will potentially continue
to grow the value of the Company combined with predicted high oil and gas prices



16th January 2008


Further information:

Island Oil & Gas plc

Paul Griffiths

Karl Prenderville                              Tel: [phone]

www.islandoilandgas.com



Davy Stockbrokers (NOMAD and broker)

Anthony Farrell                                Tel: [phone]



Landsbanki (UK broker)

Simon Robinson                                 Tel: [phone]


College Hill (Financial PR)

Paddy Blewer                                   Tel: [phone]

Nick Elwes


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