Oil prices rising, hurricanes stopping oil production, good alternative energy source (probably long term), fundamentals look good (if I have read my balance sheets correctly). Maybe has some potential? What do you think peeps?

P

All buys today,on the back of good results and very positive future.

Financial Overview

Alkane continues to move confidently towards its stated target to achieve
profitability in 2005.

A strong sales push in all markets, and the inclusion of a full year's
contribution from Pro2, have resulted in Group turnover increasing from 7.3m to
19.8m and our operating loss being reduced from 1.4m to 753,000. At a pre-tax
level, adjusted to remove the effect of the exceptional item in 2003, losses
reduced substantially from 1,033,000 in 2003 to 284,000. On the same basis,
the loss per share (basic and diluted) was reduced from 1.51p to 0.8p.

A further cut in senior executive level management contributed to a reduction in
UK salary costs of 236,000. On a full-year basis, overall Group overheads have
been reduced by 20% since 2003, to an estimated run rate of 900,000 per annum.

Net funds as at 31 December 2004 were 2.6m compared with 6.1m at the end of
2003. This reflects the investment of 2.9m in new projects, both in the UK and
in Germany.

Operating Review

Alkane have learned from their mistakes.All areas are very positive and costs are being controlled.The company is now working in all areas of gas collection giving it a much more robust model.

This could be a real growth area.These countries have had some bad disasters due to gas explosions.

Mine Methane Safety Systems

Human tragedies caused by recent methane explosions in several coal mining areas
worldwide have reinforced the message that mine atmosphere management is
critical to the safety of working coal mines. Our first containerised mine
methane extraction system was sold and shipped to Iran during the year. In the
first quarter of 2005, we have had a number of encouraging visits to Markham to
see our containerised gas extraction and generation systems. The potential
customers were mine managers and energy ministers from several countries where
coal mining is undergoing a very rapid expansion to keep up with the huge
international demand. We are currently targeting Russia, India and China along
with Iran as markets for our mine safety systems that will in future be
manufactured by Pro2.

The only way is up!

Hello ME,

Why no interest,this share has doubled in 3 months.It could double again.Now that would be good!!!

Hi Eggbert

have read the annual report and it all seams very humble. with the energy price as it is and remains, I agree, there is a lot more potential.
it appears that sales for the methane mining technology is something the market wants.
would be interested if you hear anything new.
FT

hello FT,

glad to see im not alone.Just got in,why the jump???

Technically very positive. Next stop maybe 40p
jopet

have not seen anything else than the high energy price. Guess the mine explosions this year in China did not help.
Elections in Germany expected to be held in September. following that the new Government is likely to prolong use of nuclear power plants, but will also have to take a critical look at subsidies given to solar panels. according to Solarworld AG on the FAQ site, there is the question if you should use the electricity your panel produces. they say no, as you can sell the electricity to the grid at 0.5ct and buy it back at 0.15 - 0.2ct.
While this is giving incentives to install the systems, it is not sustainable. Germans will have to find also other ways to subsidise alternative Energy.
This does not automatically lead to higher payment in Biogas (CMM) but any change makes the Pro2 more competitive.
continue to hold on to them.

Alkane Energy PLC

22 June 2005 For immediate release


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

UPDATE ON UK ELECTRICITY GENERATION OPERATIONS

Alkane Energy, the rapidly expanding international renewable energy company, is
pleased to announce that it has completed connection of two electricity
generation plants, fuelled by methane captured from abandoned coal mines.

In its AGM statement dated 11 May 2005, Alkane announced that coal mine methane
(CMM) generation projects at two sites in the UK were complete and awaiting
connection to the electricity supply grid. The Company is pleased to confirm
that these two sites are now connected and are successfully producing
electricity as planned. The two sites, at Bevercotes and Markham in
Nottinghamshire, have a combined generating capacity of 5.4MW.

In addition, excellent progress is being made on two more CMM plants at
Whitwell, Derbyshire, and Mansfield Woodhouse, Nottinghamshire. These will
contribute another 2.7MW of generating capacity and are expected to be
operational by Autumn 2005.

Alkane's CMM plants in the UK are expected to capture approximately 22,000
tonnes of methane in 2005, equal to carbon dioxide savings of around 500,000
tonnes. This is equivalent to the carbon dioxide that would be saved by
building around 285 one megawatt wind turbines.

Commenting on the UK electricity generation business, Dr Cameron Davies, Chief
Executive, said:

'Climate Change Levy exemption benefits coupled with high electricity prices in
the UK have significantly improved the economics of our coal mine methane
operations and the successful completion of our plants at Bevercotes and Markham
represents a major step forward in our electricity generation business. The new
UK projects complement our operations in continental Europe where we generate
renewable electricity, manufacture climate change mitigation systems and supply
high value added services in the methane-to-electricity market.'


Enquiries:

Alkane Energy plc Buchanan Communications

Dr Cameron Davies, Chief Executive Eric Burns, Account Director
Tel: 01623 827927 Tel: 01943 883990