Exercise of Warrants

Island Oil and Gas PLC
27 March 2006


27 March 2006

                              ISLAND OIL & GAS PLC
                              EXERCISE OF WARRANTS
                                        
Island Oil & Gas plc ('Island' or the 'Company') is pleased to announce that,
following the exercise of 957,337 warrants issued in connection with the
Company's December 2005 placing, it has issued and allotted 957,337 new Ordinary
Shares of €0.01 each in the capital of the Company at the subscription price of
£0.70 per share, raising approximately £670,136.

Island has applied for these new Ordinary Shares to be admitted to trading on
the AIM market of the London Stock Exchange and trading in these shares is
expected to commence on 31 March 2006. The new Ordinary Shares will rank pari
passu with the existing Ordinary Shares of the Company.


Enquiries:

Lisa J Newman MCIPR MIRS
Newman Consulting

Tel: [phone]


Ends.



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