Trading Statement

Alkane Energy PLC
19 July 2006

19 July 2006

For immediate release


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

                            Pre-Close Trading Update



Alkane Energy Plc, the international energy company that designs, builds,
operates and services climate change reduction and renewable electricity
generation plants, provides the following update on trading.

The Board is pleased with the Company's performance in the first half of 2006
and reports that trading has met management expectations. Interim results for
the six months ended 30 June 2006 will be announced on 20 September.

One of the features of the first half has been a rapid build-up in the order
book at Pro2 to record levels. This currently stands at €34m. As a result of
this success, working capital demands at Pro2 have increased more rapidly than
anticipated and the €3m loan from Alkane at end of 2005 will remain in place for
the time being. Discussions are underway with banks and other potential sources
of finance in order to put in place adequate working capital to meet Pro 2's
foreseeable requirements.



Despite the loan to Pro2 remaining outstanding, Alkane confirms that development
plans for two new UK mine gas plants to come on stream in 2006 remain on track.



For further information, please contact:


Alkane Energy plc
Dr Cameron Davies                                    Tel: [phone]


Buchanan Communications
Eric Burns                                           Tel: [phone]






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