AGM Statement

Alkane Energy PLC
25 April 2003


                 Alkane Energy plc ('Alkane' or 'the Company')

                            Chairman's AGM Statement


Alkane Energy plc, the UK's leading commercial producer of Coal Mine Methane
('CMM') from abandoned coal mines, held its AGM today. Commenting on the results
and current trading, Dr. Cameron Davies, Alkane's Chairman said:


'2002 was a very difficult year for the Company, due to the depressed
electricity market and the continuing lack of meaningful support by the UK
government. As a result of this and a review of current trading, the cost base
of the UK business has been reduced as we announced on 27th March 2003 and will
produce cash savings of approximately £900,000 pa.


Alkane Energy has a wealth of experience, which is being used to address the
serious environmental problem of CMM emissions, coupled with this the directors
of the Company have decided to pursue alternative revenue streams. This strategy
has already been fruitful, with the announcement of our CMM project in Germany.
We will continue to examine other opportunities that arise which give similar
benefits.


Since our preliminary results announcement in March, one of our direct gas sales
customers, Coalite Products Limited, supplied from our Markham site, has been
placed in Administration however we are continuing to sell gas with the payments
guaranteed by the Administrator. The pre-administration outstanding debt amounts
to £21,000.


Our four producing sites have continued to operate as previously reported.


We are continuing to lobby the Government for inclusion in the Renewables
Obligation alongside landfill methane or for an alternative form of assistance
on a similar scale. Under the auspices of the Treasury, a working party of
senior officials from the Treasury, DTI and DEFRA and ACMMO representatives is
meeting in May to discuss the options available, following from the policy set
out in the recent Energy White Paper and in various correspondence with
Ministers.


The DTI has advised us that the European Commission has put the issue of Climate
Change Levy exemption for electricity produced from CMM out for consultation
under EU State Aid rules, a process that may take from four to eighteen months.
We have made written representations through our trade association ACMMO to the
Commission in support of the case for approval.


Our financial position remains strong with current cash reserves of £13.3
million.'


For further information:

Alkane Energy plc
Dr Cameron Davies, Chairman                     Tel: [phone]

David Cross, Chief Executive

Binns and Co PR Ltd
Dr Ben Willey                                   Tel: [phone]






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