AGM Statement

Alkane Energy PLC
07 May 2008


For immediate release                                                 7 May 2008



                               Alkane Energy plc


                   ('Alkane' or 'the Company' or 'the Group')


                                 AGM Statement


At the Annual General Meeting of Alkane Energy plc ('Alkane'), to be held today
at 11.00am at Blackburn House, Boughton, Nottinghamshire, John Lander, Chairman
of Alkane, will make the following statement:


'I am pleased to report that in 2007 after adjustment for non-recurring items,
Alkane made an underlying profit before tax of £1,343,000 compared with £843,000
in 2006. Our electricity sales increased by 35% to 79 million kWh and our gas
sales increased by 25% to 9.4 million cubic metres.


We are delighted that 2008 has also started well with two more generation plants
being added to increase our combined generation and gas capacity to 20MW, and
contributing to Group revenues. In this context, we completed a successful gas
well at Mansfield on time and on budget with a third generator being added
successfully in April 2008, bringing the plant capacity to 4.05MW of electricity
and 1MW equivalent of gas supplied by pipeline to a local customer. We also
installed a second generator at Warsop, doubling the plant capacity to 2.7MW. We
are currently fitting state of the art silencers to the Bevercotes generators to
bring them into line with the planning noise specification and a fourth
generator is due for delivery to this site in June.


Electricity sales from the most recent of these additions have been contracted
at £58/MWh for the next six months, an excellent year on year increase.


We have fitted remote internet based monitoring and control systems at all of
our sites giving our engineers the capacity to start engines and diagnose plant
performance remotely. This has allowed our team to optimize their maintenance
visits and minimize their travel time, costs and related vehicle emissions.

Alkane's electricity sales continue at record levels, with sales in the first
four months of 2008 totaling 27 million kWh. We are planning new projects in the
East Midlands, Lancashire and South Wales and these are at various stages in the
planning and execution process. We are making every effort to get these
completed to add to our generation capacity in late 2008 and early 2009.


In Germany, our share of the profits of Pro2 Anlagentechnik rose to £299,000 in
2007 from £28,000 in the previous year. Following the deconsolidation of the
business in 2007, our equity holding is 38%. Pro2 has made a good start to the
year and is also rapidly broadening its international sales as expanding carbon
credits and renewable energy markets drive new opportunities outside of its home
market of Germany.


In the UK, we will continue to develop our portfolio of mine gas projects and
hope to add to this with awards in the 13th Round of onshore licensing later in
the year.


I believe that the prospects for medium term electricity prices are very
encouraging and some of our plants are already signed up with contracts at
prices substantially above those of last year.


In closing, I would like to thank my colleagues for their dedication in
continuing to operate a profitable business with good growth prospects.'


John Lander

Chairman

For further information please contact:

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

Buchanan Communications                        Tel: [phone]
Dr. Ben Willey, Partner                        
Miranda Higham, Associate

Brewin Dolphin
Andrew Emmott, Director                        Tel: [phone]




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