Exercise of Options

Alkane Energy PLC
13 July 2005


ALKANE ENERGY PLC (the Company')

13 JULY 2005

EXERCISE OF OPTIONS

The Company announces that today, following the exercise of share options under
the Company's 2000 Pre-admission Share Option Plan, it has issued and allotted
67,000 new ordinary shares of 0.5 pence each. The exercise price was 10.5p per
share.

The issued ordinary share capital of the Company is now 90,864,043 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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