Island Oil & Gas Opts Out of Exploration License

In August 2007 the Company was awarded a 22% interest in Exploration License 5/07, which extends over parts of blocks 48/17, 48/18, 48/19, 48/22 and 48/24 and contains the Roscarberry prospect, as well as the Galley Head (48/18-1) and Carrigaline (48/24-4) gas discoveries.

Island has at this time elected not to participate in the award of the Exploration License which would involve additional exploration commitments for the Company. The reallocation of interests in the License is awaiting approval by the Department of Communications, Energy and Natural Resources (DCENR).