Re: Marathon Speculation

Island Oil and Gas PLC
26 February 2008

ISLAND OIL & GAS PLC



Re: Marathon Speculation





Island Oil & Gas plc (LSE:IOG) ('Island' or the 'Company'), today announces that
following the media reporting of Marathon's decision to undertake a strategic
review of its Irish gas business, which could ultimately lead to a sale if an
acceptable offer is received, Island can confirm that it is reviewing the
potential of participating in an acquisition of all or part of Marathon's assets
offshore Ireland.



The acquisition of the assets could add considerable value through cost savings
and synergies to Island's portfolio; given the proximity to Island's Celtic Sea
assets.





Paul Griffiths, CEO of Island Oil & Gas commented,



'We see this as a potential opportunity to add serious value to our portfolio of
owned and operated assets. We already have a strong regional position and can
use our experience to take on and develop the assets to the advantage of both
our shareholders, and the wider Irish economy.



A successful acquisition of these assets involving Island Oil and Gas would see
the first Irish involvement in the Corrib gas field development and the
potential for the Strategic National Gas Reserve to be provided by an Irish
company.'



26 February 2008



Further information:

Island Oil & Gas plc
Paul Griffiths
Karl Prenderville                                Tel: [phone]
www.islandoilandgas.com

Davy (NOMAD and broker)
Anthony Farrell                                  Tel: [phone]

Landsbanki (UK broker)
Simon Robinson                                   Tel: [phone]

College Hill (Financial PR)
Paddy Blewer                                     Tel: [phone]
Nick Elwes



Notes to Editors:



Island was founded in 2003 and listed on AIM in December 2004 (LSE:IOG).  The
Company has interests in eleven Irish offshore licences in both the Celtic Sea
and Atlantic Margin. In addition, it is developing a wider portfolio, with
potentially valuable licences in the Netherlands, Albania and Morocco. Island is
involved in an exploration and appraisal programme which in 2006 and 2007 saw
successful Celtic Sea gas wells at the Old Head of Kinsale, Schull and Seven
Heads Sub-Area.


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