United Energy PLC - Re Agrigen's Power Station

RNS No 1134j
UNITED ENERGY PLC
3rd February 1999


United Energy plc, the oil and gas company, holds a 70% interest in Agrigen
Ltd with options over the remaining 30% of the issued share capital.

Agrigen Ltd holds a government backed NFFO3 contract to supply 8.825 megawatts
of electricity from a poultry litter fired power station to be located at Nunn
Mills, Northampton.   Construction of this power station has been on hold
pending the outcome of a Planning Inquiry which was held between 20 October
and 6 November 1998.

The Planning Inspectorate has informed Agrigen that the Inspector concluded
that the harmful environmental and economic effects of Agrigen's appeal
proposal outweigh the positive strategic and local energy related benefits of
the power station and planning permission should not be granted.

The full implications of the Planning Inspector's decision are under review. 
However, it is likely that full provision will be made against United Energy's
investment in Agrigen in the results for the year ended 31 December 1998,
amounting to approximately #1.2 million.  The charge will be treated as an
exceptional item.

As detailed in the Interim Results announcement in September 1998, the Company
continues to seek options to realise the underlying value given the low share
price.


Contact:Nick Tamblyn, Chief Executive - 01242 253773
        Derek Howard-Orchard, Group Technical Director - 01242 253773


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