Re Contract

Alkane Energy PLC
12 November 2003


12 November 2003

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

           Alkane takes order for containerized extraction equipment


Alkane is pleased to announce that it has signed a contract to sell a
transportable containerized mine gas methane extraction system for use at an
operating mine together with a package of support and spares.  The equipment is
to be used at the Tabas mine in Iran.  The order has a value of US$1.2million
and has been placed by IRASCO, the Iranian national purchasing agency.  Delivery
is expected to take place in mid 2004.

Alkane announced in its preliminary results for the year ended 31 December 2002
the intention to sell its containerized extractor units and is delighted to be
able to announce this order.

The Tabas coal mine is under development and is expected when fully operational
to supply 0.75 million tons of clean coal pa which will be used by the National
Iranian Steel Company in its operations.

Commenting on the sale, Dr Cameron Davies, Chairman of Alkane Energy said:

'We are delighted to announce that IRASCO has purchased our system and by the
general level of interest shown from potential buyers.  We believe that further
sales of the system could be another valuable area for the company to exploit.'


Enquiries:

Alkane Energy plc
Dr Cameron Davies, Executive Chairman                     Tel: [phone]
David Cross, Chief Executive

Buchanan Communications
Judith Parry                                              Tel: [phone]
Sophie Morton


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