Trading Statement

Alkane Energy PLC
11 June 2004


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

Trading Statement: 11th June 2004

Alkane Energy plc, the international green energy company, further to its
announcement on 19 April 2004, today made the following comments on current
trading and strategy:

Dr Cameron Davies, Chief Executive, said:

'I am pleased to report a number of positive developments at Alkane.  These,
together with the benefit from cost savings already implemented and others in
the pipeline, give me the confidence that we will meet market expectations for
the current year and move towards profitability in 2005. Meanwhile, the
Company's cash holdings remain strong.

Germany

In Germany, we are pleased with the performance of Pro2, which is operating  in
line with expectations, and are looking forward to good second half figures as
trading is significantly weighted towards this period.

The recently enacted Renewable Energy Law (Erneuerbare Energien Gesetz) is
stimulating the development of the biogas industry, in which Pro2 is an
important supplier of climate change mitigation and electricity generation
packages. The new law increased the guaranteed prices for renewable electricity
generated from biogas and is expected to provide a major boost to this sector
and establish the basis for higher margin service and maintenance contracts.
This additional endorsement of the renewable energy industry by the German
Government provides long-term financial security for biogas developments and
establishes a backdrop for Pro2's continued profitable growth.

In addition, Pro2 is increasingly marketing its climate change mitigation
technology service in the UK, France, Spain and Belgium and is focusing on
improving its financial performance through higher margin servicing and
contracting operations.

UK

Biogas

Alkane recently acquired Farmatic UK Limited, now renamed Alkane Biogas Limited,
which will form the basis for our new anaerobic digestion business.  We plan a
number of plants which will provide income from the generation of renewable
electricity and 'gate fees' from bio-waste streams from farms and food
processors, initially in Northern Ireland and Wales.

Coal Mine Methane ('CMM')

Development of the Company's UK CMM properties was suspended in 2003, to await
the report of the DTI study into the negative environmental impact of CMM
emissions.  The report concluded that flaring CMM is the best economic option
rather than electricity generation and proposed that the industry should be
supported through grants to be awarded through competitive tender by the Coal
Authority.  The promise of these grants, along with Climate Change Levy
exemption and the significant rise in electricity prices since 2002, could
improve the viability of some of our CMM sites.  In the light of this, these
sites will be retained at low cost while a significant part of the licence
portfolio will be surrendered, resulting in large ongoing cost savings.'

John Lander, Alkane's recently appointed non-Executive Chairman, added:

'I am pleased to report in this, my first statement as Chairman, that Alkane has
continued to develop its revised strategy, announced in March 2003, of
diversification into more profitable renewable technologies and away from UK
CMM. The company is moving towards its goal of providing a high quality one stop
service for the capture and mitigation of all types of methane from manmade
sources.

The Company remains focused on enhancing shareholder value by streamlining its
UK operations, maximising cost reductions and expanding into higher margin parts
of its business. The Company is also pursuing options which include partnerships
and alliances with existing businesses in the waste management and green energy
sectors where it can provide a full service from gas to renewable electricity
generation.'


Enquiries:

Alkane Energy plc                                    Tel: [phone]
John Lander, Chairman
Dr Cameron Davies, Chief Executive

Buchanan Communications
Judith Parry/Eric Burns                              Tel: [phone]
Ben Willey                                           Tel: [phone]



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