Island Receives Decrease of Interest in Company Holdings

Island Oil & Gas plc has received a notification from Gartmore Investment Limited ("Gartmore") dated 7 January 2008 of a decrease in its notifiable interest in the Company. The notification states that this reduction was due to the issue of new shares on 3 January 2008.

As at 8 January 2008, Gartmore holds, in aggregate, 16,119,567 ordinary shares of 0.01 each in the Company, representing approximately 13.83% of the shares in issue.

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