2nd November 2006

Completes Acquisition of USA
Shale Gas Interest

Irvine, the AIM listed oil & gas exploration company, is pleased to announce the completion of the acquisition of a 75 per cent. working interest in approximately 30,000 acres of oil and gas leases in the Chattanooga Shale in Kansas, USA, through the acquisition of 100% of the issued capital of Wattle Energy Inc and Halcyon Investment Co Pty Ltd ('the Acquisitions') for a consideration as fully detailed in the Re-admission Document.

The primary focus of the Project is shale gas exploration and development of the Chattanooga Shale within the AMI (area of mutual interest), which covers an area of approximately seven million acres. The Metro Group, which has experience in shale gas development, will be the operator of the Project and will hold a 25 per cent. working interest in the Project.

Irvine and the Metro Group aim to build a large strategic acreage position over the Chattanooga Shale, with a target acquisition of interests in 100,000 to 200,000 acres of oil and gas leases within the AMI. In conjunction with acquiring interests in additional oil and gas leases within the AMI, Irvine and the Metro Group will undertake three dimensional ('3-D') seismic studies and drilling programmes to establish the economic parameters of the Chattanooga Shale gas formations. The Directors believe this exploration programme has the potential to generate conventional oil and gas targets for testing, with the possibility of early cash flow from the conventional targets and the shale gas wells.

Stage 1 of the Project plan is to acquire interests in 100,000 acres of oil and gas leases (including the initial leases comprised in the Acquisitions) within the AMI and to undertake 3-D seismic studies. This is expected to be completed within 12 months. Stage 2 of the Project plan, which will be financed through a further fundraising, is to acquire interests in an additional 100,000 acres of oil and gas leases within the AMI, to carry out further 3-D seismic studies and to undertake vertical and horizontal drilling programmes.

Irvine Chairman Mr Michael Frayne said: 'Shale gas is currently one of the fastest growing on-shore energy sectors in the USA. We are delighted to have completed an acquisition in a large, new USA shale gas play in an established oil and gas region with excellent infrastructure that we believe has strong potential for significant shale gas and conventional oil and gas targets. We are working with experienced partners who are operating with major companies in the Woodford and Caney Shales in Oklahoma. We are committed to implementing an immediate exploration plan involving seismic acquisition with the aim of identifying drill targets. We will also be looking to acquire further land to build a portfolio of between 100,000-200,000 acres which we believe should reflect positively on the future value of the Company.'

Under the terms of the Agreements, Irvine will fund the first US$$1.5 million in 3-D seismic studies and the total third party costs of acquiring additional oil and gas leases within the AMI. Irvine and the Metro Group will then contribute to all other costs, primarily drilling and further 3-D seismic, in proportion to their 75% and 25% respective working interests. The Enlarged Group's share of revenues (i.e. its net revenue interest) is 60% after total-third party royalties of 20%. Post Completion, the Enlarged Group's share of Project funding to the end of the first quarter 2007 is estimated at US$$4 million.

The Acquisitions, which were a reverse takeover under the AIM Rules, have been approved by shareholders at the EGM held on 30 October 2006. As part of the acquisition an initial share consideration of 80 million Initial Consideration Shares in Irvine has been issued to the vendors. These Ordinary Shares have today been admitted to trading on AIM.

Terms used in this announcement shall have the meaning given to them in the Re-admission Document published on 13 October 2006.

For further information please contact:

Irvine Energy plc
Michael Frayne, Tel: +44 (0) 207 016 9579

Nabarro Wells & Co Ltd
Hugh Oram, Tel: +44 (0) 207 710 7400

St Brides Media & Finance
Hugo de Salis, Tel: +44 (0) 207 242 4477

St Brides Media & Finance
Felicity Edwards, Tel: +44 (0) 207 242 4477

Notes to Editors:

About USA Shale Gas, the Operator
and Project AMI

Organic rich shales are hydrocarbon source rocks which are pervasive across large geographic areas, and not confined to limited traps or structures. These shales typically have lower gas flow rates than conventional reservoirs, but tend to produce over longer periods. Recent technological advancements, including fracture stimulation combined with horizontal drilling, and higher gas prices have enabled economic natural gas production from extensive shale basins. This has resulted in the development of the multi-billion dollar shale gas industry in the USA, one of the fastest growing energy sectors in onshore USA.

The Metro Group has oil & gas operations in Oklahoma, Louisiana and Kansas and has significant in-house experience and expertise in geology, prospect generation, field operations, and oil and gas marketing. The principals of the Metro Group have over 40 years combined experience in the oil and gas industry. The Metro Group has a proven track record in shale gas development, including an operating agreement in the Woodford Shale gas play in Oklahoma with Devon Energy, one of the largest shale gas developers in the USA.

The Project AMI covers 11 contiguous counties in Kansas which cover the Chattanooga Shale. The Project AMI covers an area of approximately seven million acres. The AMI has a history of prolific oil & gas production from a number of formations and has significant infrastructure in place, including gas pipeline networks. Over the past two decades, there has been limited application of the technologies proposed under the Project, including 3-D seismic and horizontal drilling.