Holding(s) in Company

RNS Number : 2614D

Alkane Energy PLC

14 May 2012

Alkane Energy plc

("Alkane" or "the Company")

Notification of Major Interest in Shares

The Company has received notification from Henderson Global Investors ("Henderson") informing it that as at 9 May 2012 they held 24,209,997 ordinary shares of 0.5 pence each in the share capital of the Company ("Ordinary Shares"), representing 24.00% of the voting rights of the Company that currently stands at 100,863,085 Ordinary Shares. No treasury shares are held by the Company.

Furthermore, as part of the funding for the recently completed acquisition of Greenpark Energy Limited (the "Acquisition"), Henderson underwrote a £2.0 million convertible loan (the "Convertible Loan"), the terms of which were set out in the Acquisition announcement dated 2 February 2012.

The Convertible Loan is unsecured and the terms of the Convertible Loan state that it will automatically convert into Ordinary Shares (i) if at any time up to six months following the issue of the convertible loan notes the Company raises capital via an equity placing at 22 pence or above; or (ii) if later, on the date which is 3 years after the issue of the convertible loan notes. The convertible loan notes are convertible at any time prior to repayment or automatic conversion at the holder's option, at a conversion price fixed at 17.5 pence. In each case, the Company's obligations to convert the convertible loan notes is subject to (i) the Company having the appropriate shareholder authorities to permit conversion; and (ii) conversion not triggering a mandatory offer under Rule 9 of The City Code on Takeovers and Mergers. Interest which accrues on the Convertible Loan forms part of the Convertible Loan. If any element of the Convertible Loan is not converted, it is otherwise repayable on the date which is 3 years and 1 day after the completion of the Acquisition which occurred on 27 April 2012.

Following the Acquisition, Henderson holds £1.81 million of convertible loan notes which are potentially capable of being converted into up to 10,342,857 Ordinary Shares. The number of convertible loan notes which are held by Henderson, and therefore the number of Ordinary Shares into which those loan notes are capable of being converted, may increase if interest accrues on the existing loan notes. However, the convertible loan notes are only convertible to the extent (i) the Company has the appropriate shareholder authorities to permit such conversion; and (ii) such conversion will not trigger a mandatory offer under Rule 9 of The City Code on Takeovers and Mergers. Any balance of convertible loan notes which are not converted are repayable in accordance with their terms.

Enquiries:
Alkane Energy plc Neil O'Brien	01623 827 927
Hudson Sandler	0207 796 4133
Nick Lyon / Alex Brennan
VSA Capital Group Limited Andrew Monk/Andrew Raca	020 3005 5000
Altium Capital Limited Adrian Reed	0845 505 4343