Exercise of Options

Alkane Energy PLC
31 October 2005


ALKANE ENERGY PLC (the Company')

31 October 2005

EXERCISE OF OPTIONS

The Company announces that today, following the exercise of share options under
the Company's Post-admission Share Option Plan, it has issued and allotted
30,000 new ordinary shares of 0.5 pence each respectively. The exercise price
was 16.25p per share.

The issued ordinary share capital of the Company is now 91,157,043 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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