Licence Extensions

Island Oil and Gas PLC
22 February 2006


22 February 2006



 ISLAND ANNOUNCES LICENCE EXTENSIONS FOR LICENSING OPTION 03/5 AND 03/6 IN THE
                                   CELTIC SEA


Island Oil & Gas plc ('Island'), the technology-led independent exploration and
production company, today announces that the Irish Authorities have granted
extensions to Licensing Option 03/5 (the Seven Heads Oil Option) and Licensing
Option 03/6 (the Roscarberry Licensing Option) until 31 December 2006. Both the
Seven Heads Oil Option and the Roscarberry Licensing Option are located in the
Celtic Sea, offshore Ireland.


Island has a 12.5% participating interest in the Seven Heads Oil Option. Island
and its partners have recently completed a detailed work programme ahead of a
decision on future exploration which will be taken early this year. Through an
Option Agreement executed with Ramco Oil and Gas Limited in April 2004, Island
can acquire a further 44.4% equity interest in the Seven Heads Oil Licensing
Option by committing to and funding 74% of an appraisal well to test the
oil-bearing Lower Wealden reservoirs in the Seven Heads structure.


The Roscarberry Licensing Option is located immediately to the north of Seven
Heads. Island has a 22% participating interest in the Roscarberry Licensing
Option which includes the Roscarberry Prospect (formerly known as the Sneem
Prospect).  Island, alongside its partners, has completed a work programme
designed to mature for drilling this Prospect, a potentially significant
Greensand gas structure, in advance of a decision on future exploration activity
to be taken early this year.  Any future gas production could potentially be
tied back to the Seven Heads infrastructure.


Enquiries:

Lisa J Newman MCIPR MIRS
Newman Consulting
Tel: [phone]

Notes to Editors


The partners in Seven Heads Oil Licensing Option 03/6 are: Lansdowne Oil & Gas
plc (a new subsidiary of Ramco Energy plc) operator with 74% interest; Island
12.5% with an option to earn a further 44.4% equity interest by drilling a well;
Sunningdale Oils (Ireland) Limited 1%


The partners in Roscarberry Licensing Option 03/5 are: Lansdowne Oil & Gas plc
operator with 77%; Island 22%; Sunningdale Oils (Ireland) Limited 1%.


  Further information on Island can be found at the Company's website, 
http://www.islandoilandgas.com






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