19 February 2008

Operations / Production Update

Irvine Energy plc, the AIM listed oil and gas exploration and production company, is pleased to announce an update on recent activities, including the commencement of production, within its 162,000 acre portfolio of onshore conventional and unconventional oil and gas projects in the USA.

Overview

• Irvine Net Production from Jan 9 to Jan 31 was 6.973 million standard cubic feet of gas and 76 BBLS of oil, from 18 wells in Oklahoma, marking Irvine's first hydrocarbon sales. Production due to commence at Niobrara from 20 wells following completion of workover programmes
• Four wells completed in Oklahoma and workover programmes initiated on a further three wells
• Initial well locations identified in Kansas targeting the Arbuckle and Mississippian formation in the highly prospective Cooley oil fields
• 3D seismic programmes at Ares and Udall project areas in Kansas underway to identify multiple drill targets
• Current 2008 drill programme includes 30+ wells to raise reserve base and increase oil and gas production across portfolio
• Production phase now reached leading to cash flow - 18 producing wells, three shut in and four being completed with intention to raise the number across the portfolio to 45 by mid 2008

Irvine Managing Director Aaron Close said, "This is a transformational period for the Company as we develop our prospective oil and gas targets in the US and enter the production phase. With an extensive portfolio already in place, we will now rapidly increase our reserve base through exploration and our cash flow through a ramp up in production as more wells come on stream. We are very pleased with our progress, as our strategy of focussing on shallow, low-cost drilling projects in areas of stacked pay zones and existing infrastructure is proving itself across our portfolio. At our current rate of development, we aim to be producing in our three areas of operation by April."

Oklahoma
Attributable production in Oklahoma began January 9 following the completion of the final closing agreements between Metro Energy Group ("Metro") and Irvine. Irvine produced 7.973 Million standard cubic feet of natural gas and 76 bbls of oil net to its interest during the month of January. Workover work is under way on three existing wells that did not report production during January. Drilling of the Patriot 3-15, the Priegle 2-10 and Summers 1-3 operated by Metro, as well as the Ross 3-27 operated by Williams Energy, has been completed. Additional drilling and workover programmes are underway and will be announced as results become available.

Kansas
The first of the 3D seismic shoots has been interpreted and the initial well location has been selected. Drilling is planned to begin at the end of February and is expected to take two to three weeks. If successful, the completion processes are expected to take a further three weeks. The well will be targeting primarily oil pay in the Arbuckle formation as an extension of the highly productive Cooley oil field.

The Ares and Udall project areas 3D seismic programmes are in progress and the Ares 3D is underway and expected to finish by March. The seismic crew will move directly to the Udall area and begin shooting there upon completion of the Ares. Once completed, processing is expected to take approximately 30 days and interpretation will take an additional 30 days. This is being conducted to identify multiple drill targets in accordance with the Company's development plan.

Niobrara Project Kansas
Following an evaluation programme during the second half of 2007, 20 initial wells were selected for development. All of these now have pumping units and gas gathering lines in place. The water disposal permit has been approved and the water disposal well is being prepared for use. The gas sales contracts are in place and a gas compressor is being prepared. Production is targeted at 500 mcf/d net to Irvine, with current prices in the region of US$7.00/mcf. First gas sales are expected in March. Development of the extensive inventory of undrilled well locations in this project is expected to begin in Q2, after production from the initial 20 wells has stabilised and production rates are confirmed to be in line with Irvine's expectations.

Current Activity and Status

The information contained in this announcement was completed and reviewed by the Managing Director of Irvine Energy plc, Mr Aaron Close, who has over nine years experience as a geoscientist in the North American oil and gas sector, and is a graduate from the Colorado School of Mines Golden with a Bachelor of Science, Mathematics and Computer Science Engineering and Geophysics. Mr Close is a member of the Society of Petroleum Engineers.

For further information please visit www.irvineenergy.com or contact:

Irvine Energy plc
Aaron Close, Tel: +1 281 657 7770

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
Vistoria Thomas, Tel: +44 (0) 207 236 1177

Notes:

Irvine Energy plc is an AIM listed company focussed on the development of onshore conventional and unconventional oil and gas projects in the USA. The Company currently has exploration and production projects in Kansas and Oklahoma, which it is operating and developing in conjunction with its joint venture partner Metro Energy Group.

It is the Company's objective to become a significant player in both the conventional and unconventional USA oil and gas markets, by building a solid portfolio of assets within the highly prospective Kansas/Oklahoma region. Irvine has an aggressive growth strategy in place with a work programme to advance its production projects and upgrade its C3 resources to P1 status. The Board believes that by assembling a combination of conventional and unconventional plays, it provides the Company with a balanced low risk, high capital efficient development programme.