Transfer of Licence

Alkane Energy PLC
18 September 2006

18 September 2006
For immediate release



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


                              TRANSFER OF LICENCE



Alkane Energy, the international energy company that designs, builds, operates
and services climate change reduction and renewable electricity generation
plants, is pleased to announce that it has transferred one of its non-core
licences in exchange for £350,000 in cash plus access to two mine gas sites in
its core area of operation.



The PEDL/EXL250 licence, covering part of the Selby coalfield, has been
transferred from Alkane to Harworth Power Limited, a wholly-owned subsidiary of
UK Coal Plc. The transfer agreement gives Alkane access rights to two coal mine
sites, at the Prince of Wales colliery in Yorkshire and Bilsthorpe in
Nottinghamshire. Alkane has signed a lease for the site at the Prince of Wales
colliery whilst a further lease covering Bilsthorpe will be signed once gas is
proved.  The potential mine gas reserves will be investigated as part of
Alkane's energy park roll out programme with the objective of developing
electricity generation plants at each of these sites. The transaction provides a
useful increase in the number of potential generation projects available to
Alkane in its core area of operation.



Commenting on the transaction, Dr. Cameron Davies, Chief Executive of Alkane,
said:



'We are pleased to have reached an agreement with Harworth Power that provides
us with a cash sum of £350,000 and also gives us immediate access to two
potential mine gas development sites.'





Enquiries:



Alkane Energy plc                             Buchanan Communications
Dr Cameron Davies, Chief Executive            Eric Burns, Account Director
Tel: [phone]                             Tel: [phone]






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