Update on Site Development

Alkane Energy PLC
30 November 2001

                                                              30 November 2001

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

                          Update on Site Development

Alkane, the UK's leading commercial producer of methane gas from abandoned
coal mines, is pleased to announce that its new site at Barnsley, Yorkshire
will be ready to deliver gas by the end of 2001.  It is also anticipated that
a further new site at Wheldale, Yorkshire will be completed before the year
end.  Customers, Rexam and Scottish & Southern Energy, are expected to begin
to draw down gas at these two new sites in January 2002.

Alkane, is also pleased to announce that it has signed Heads of Agreement with
ABB, the multi national power and automation technology company, for the
development of five further sites.

The Directors of Alkane remain confident of their objective of opening 16 new
sites by the end of 2002, albeit that the phasing of these new sites is now
likely to be more heavily biased towards the second half of the year.  The
principal reason for this is that Alkane had signed heads of agreement with
Enron to take 10 of these new sites. In view of of Enron's well publicised
financial difficulties, the Directors of Alkane now anticipate that it is
unlikely that Enron will be in a position to develop these sites.  The
Directors of Alkane confirm that the Company does not have any financial
exposure to Enron and remain confident that demand for the Company's product
is such that it should be possible to find alternative customers during 2002.

                                    -END-



Enquiries:

Alkane Energy plc                         Tel: [phone]
David Cross, Chief Executive

Binns & Co PR Ltd                         Tel: [phone]
Judith Parry