New Licence Award

Alkane Energy PLC
14 February 2002

14 February 2002


                          Alkane Energy plc ('Alkane')
          Award of new licences in the 10th UK onshore licensing round

Alkane Energy plc, the UK's leading commercial producer of methane gas from
abandoned coal mines, is pleased to announce that it has been awarded eight new
onshore licences in the 10th UK onshore licensing round.

The licences cover a total area of 1,190 km(2) covering 15 blocks from Scotland
to North Wales.  This consolidates Alkane's position as the holder of the
largest licensed area with coal mine methane ('CMM') potential.  Alkane now
holds a total of 26 EXL and PEDL onshore licence areas in the UK which give it
exclusive rights over 5,472 km(2) with CMM and coal bed methane potential.

Alkane currently operates five Green Energy Parks in the East Midlands and
Yorkshire where methane is captured and sold to customers either for direct use
as burner tip fuel or for conversion on site to electricity.  Customers include
Scottish and Southern Energy and Rexam.

Commenting on the award, Dr Cameron Davies, Executive Chairman, said:

'  We are delighted that Alkane has been awarded every licence that it applied
for in this new licensing round despite strong interest from competitors.  We
appreciate the support the Government is giving to the development of this new
industry and look forward to the continued development of our own site opening
programme.'

On announcing the awards, Patricia Hewitt, Secretary of State for Trade and
Industry said:

'  It's particularly good to be able to offer fourteen licences to companies
concentrating on gas from coal mines, offering the potential for new activity in
former mining communities and helping to bring new activity and jobs to former
mining areas, while contributing to the UK's energy supply, and helping to meet
the Government's Kyoto targets by preventing unnecessary emissions of methane, a
potent greenhouse gas.'

For further information contact:

Steve Goalby                                              Tel: [phone]
Finance Director
Alkane Energy plc

Keeley Middleton/Sophie Morton                            Tel: [phone]
Binns & Co PR Ltd


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