Holding(s) in Company

Island Oil and Gas PLC
08 August 2006


8 August 2006


                              ISLAND OIL & GAS PLC

                              Holdings in Company

Island Oil & Gas plc ('Island' or the 'Company') is pleased to announce that the
Stg£5.5 million Convertible Loan Notes subscribed for by Platinum Petroleum Ltd
('Platinum') have now been converted into 5.5 million Ordinary Shares of €0.01
each in the Company ('Ordinary Shares') at a conversion price of Stg£1.00 per
Ordinary Share.

As a result of this conversion Platinum's shareholding in the Company is
increased to 25 million Ordinary Shares representing 33.27% of the 75,141,000
Ordinary Shares now in issue.

Island has applied for these 5.5 million new Ordinary Shares to be admitted to
the AIM market of the London Stock Exchange with effect from 14 August 2006.

In addition, Platinum has been issued with 5.5 million warrants to subscribe for
Ordinary Shares, each of which are capable of being exercised at a price of
Stg£1.10 per Ordinary Share, at any time in the 12 month period ending 9 June
2007.

Enquiries:

Lisa J Newman MCIPR MIRS
Newman Consulting

Tel: [phone]

  For further information on the Company and access to previous announcements,
    please refer to the Company's website at http://www.islandoilandgas.com



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