31 January 2007

Irvine Energy Plc increases Oil & Gas Exploration Leases In USA to 107,000 Acres

Irvine Energy plc, the AIM listed oil & gas exploration company, announces the planned acquisition of a 75% working interest in a further 46,577 acres of oil and gas leases in Barber, Butler, Cowley, Harper, Sedgwick and Sumner counties, Kansas, USA, for a cash consideration of US$$1.233 million. The acquisition is part of Irvine's lease acquisition, exploration and development programme in respect to the Chattanooga Shale Formation ("the Project") in Kansas, in joint venture with Metro Energy Group Inc ('Metro'). The Company expects to complete the acquisition within the next 7 days ("Completion").

The primary focus of the Project is shale gas exploration and development, within an Area of Mutual Interest ("AMI") of approximately seven million acres covering the Chattanooga Shale. Following the acquisition, Irvine has a 75% working interest in over 107,000 acres of oil and gas leases within the AMI, more than triple the initial interest in 30,000 acres acquired on 1st November 2006 and detailed in the Admission Document. Accordingly, on Completion, Irvine will have taken a large step towards achieving the Stage 1 milestone of acquiring a 100,000 acre holding and undertaking three dimensional seismic studies within the Project area.

Irvine Chairman, Michael Frayne, said, "We have made fantastic progress in achieving a large part of our first stage strategic objective by building an oil and gas lease position in excess of 100,000 acres on the prospective Chattanooga Shale formation. Metro, our partner in the US, has capitalised on its first mover advantage and helped build this position in under three months, which is a great achievement. We are in the process of finalising an extensive seismic programme to identify shale gas as well as conventional oil and gas targets, which will then be drilled. The Board is excited about the potential of our area of activity both for shale gas and conventional oil and gas. We remain committed to extending our portfolio and identifying economic targets, which we believe will ultimately reward our shareholders."

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

The Project

The primary focus of the Project is shale gas exploration and development of the Chattanooga Shale within an Area of Mutual Interest ("AMI") which covers an area of approximately 7 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.

The Project AMI covers 11 contiguous counties in Kansas which cover the Chattanooga Shale. The AMI has a history of prolific oil and 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 3D seismic and horizontal drilling.

The Operator

The Metro Group has oil and 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.

USA Shale Gas

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.