Old Head of Kinsale

Island Oil and Gas PLC
28 July 2006


28 July 2006


            ISLANDS SECOND CELTIC SEA WELL REACHES TARGET DEPTH AND
                              ENCOUNTERS GAS SHOWS

Island Oil & Gas plc ('Island' or the 'Company') today announces that the second
well of its 2006 and 2007 drilling programmes offshore Ireland, Well 49/23-1 at
Old Head of Kinsale in the Celtic Sea, has been drilled to target depth and has
encountered gas shows over a gross interval of 150 feet.  The Company is now
preparing to log the well to further evaluate the gas shows.  When evaluation of
the logging information is complete, discussions will take place with the
Petroleum Affairs Division of the Department of Communications, Marine and
Natural Resources, in accordance with the normal procedures required, to reach a
decision in relation to conducting any test programme

Well 49/23-1, which was spudded on 12 July 2006 in a water depth of 296 feet, 
was drilled to its planned total depth of 4,133 feet TVD ss in just 16 days. The
gas shows encountered will be the subject of further evaluation following
completion of the logging programme. The Company intends to issue a further
announcement by the end of next week.

Well 49/23-1 is operated by Island (with 100% equity interest) and was drilled
using the semi-submersible drilling unit, Petrolia, owned and operated by
Petrolia Drilling Limited under contract to Island.


Enquiries:

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


Notes to Editors:

Island was founded in 2003 and listed on AIM in December 2004.  The Company has
interests in nine Irish offshore licences, (four as operator and two as
technical manager), including one producing gas field.

This drilling update has been reviewed and approved by Paul Griffiths, Chief
Executive of Island.  Paul Griffiths is a geology graduate of the Royal School
of Mines, Imperial College London, and is a member of the Petroleum Exploration
Society of Great Britain. He has 30 years experience in the oil and gas
exploration sector and is a qualified person as defined in the guidance note for
Mining Oil & Gas Companies, March 2006 of the London Stock Exchange.


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






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