Island Issues More Than 1MM Ordinary Shares to Aceiro Energy

Island has issued 1,121,338 ordinary shares having a nominal value of €0.01 each to Aceiro Energy B.V. ('Aceiro').

The consideration for the allotment of shares to Aceiro is the sale and transfer to Island Netherlands B.V. of Aceiro's 0% working interest and its 1% Over-Riding Royalty Interest ('ORRI') in the Q13b Exploration Licence and in the application for the Q16b Exploration Licence, which formed part of the Amstel asset and was part of the sales agreement associated with Island's successful $25m sale of Amstel and associated assets in May 2008.

Whilst the transaction was completed in May 2008, the consideration had to be deferred until the standard Dutch administrative transfer of ownership process had been completed.

Application for admission to trading on AIM of the Shares has been made and is expected to become effective on June 3, 2009. Following Admission, the total issued share capital of the Company will be 117,678,328 ordinary shares of €0.01 each.