Alkane Energy PLC
19 June 2003


19 June 2003

                          Alkane Energy plc ("Alkane")

Alkane welcomes DTI funded assessment of options and support mechanisms for Coal
Mine Methane

The Government has announced a DTI funded review of the mechanisms for the
control of Coal Mine Methane ("CMM") emissions.

This study follows on from the Government's Energy White Paper published on 24
February 2003 and will investigate and recommend cost-effective means of
controlling CMM emissions.  It will identify mechanisms to stimulate mitigation
of CMM emissions, for example through the commercial utilisation of the methane
for electricity production. It will look at the German Government's support for
CMM, which by inclusion in the Renewable Sources Act 2000 gives a guaranteed
price for renewable energy.

Alkane, through its trade association ACMMO, expects to participate in the study
through the provision of technical and commercial information to the appointed
contractor.  ACMMO has assisted the UK Government in establishing the terms of
reference for the study.

The contractor is expected to be appointed by the beginning of August and to
complete the study in less than six months.  Alkane understands that the UK
Government intends to publish the study once it has considered it.

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

 "This study will be an important step in the identification of an effective and
significant support mechanism.  I hope that this will allow CMM capture to be
developed in the same way as landfill methane, which is supported through
inclusion in the Renewables Obligation"

For enquires:

Alkane Energy plc
Dr Cameron Davies, Chairman                          Tel. 01623 827927
David Cross, Chief Executive



                      This information is provided by RNS
            The company news service from the London Stock Exchange
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