Issue of Equity

Alkane Energy PLC
11 July 2005


ALKANE ENERGY PLC (the Company')

11 JULY 2005

EXERCISE OF OPTIONS

The Company announces that today, following the exercise of share options under
an individual share option plan granted on 7 November 2000, it has issued and
allotted 100,000 new ordinary shares of 0.5 pence each respectively. The
exercise price was 17.5p per share.

The issued ordinary share capital of the Company is now 90,797,043 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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