Exercise of Options

Alkane Energy PLC
28 June 2004


ALKANE ENERGY PLC (the Company')

28 JUNE 2004

EXERCISE OF OPTIONS

The Company announces that on 28 June 2004, following the exercise of share
options under the Company's Sharesave Scheme, it has issued and allotted 46,630
new ordinary shares of 0.5 pence each.

The issued ordinary share capital of the Company is now 89,774,343 ordinary
shares of 0.5 pence each.

Application will be made for the new ordinary shares to be admitted to AIM as
soon as practicable.

ENDS



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