White Nile Limited
06 July 2007
White Nile Ltd / Ticker: WNL / Index: AIM / Sector: Oil & Gas
6th July 2007
White Nile Ltd ('White Nile' or 'the Company')
Update on Block Ba, Southern Sudan
The Directors of White Nile Ltd, the AIM listed oil and gas exploration company,
would like to comment on recent developments with regards to its oil exploration
concession Block Ba in Southern Sudan.
The Company is again seeking clarification of its position regarding Block Ba.
As reported yesterday, Chairman Phil Edmonds last week met with the Vice
President of the Government of Southern Sudan ('GOSS'), Dr Riek Machar, and Paul
Mayom, the Minister of Interior and Chairman of Nile Petroleum Corp ('NilePet'),
the Government of Southern Sudan's state owned petroleum company. Both the Vice
President and the Chairman of NilePet were members of the Joint Executive
Committee of Northern and Southern Sudanese representatives recently convened to
discuss oil and other issues in Sudan as a whole. Both confirmed to Mr Edmonds
the proposed formation of a newly formed oil consortium with regard to Block B
as a whole in Southern Sudan and the participation of NilePet and White Nile
therein, together with Total SA, Kuwait Foreign Petroleum Exploration Company
and Sudan National Petroleum Corporation, the state owned oil company of
northern Sudan.
White Nile has today been made aware of resolutions of the National Petroleum
Commission ('NPC') apparently signed by the Co Chairmen of the NPC on 17 June
2007. This document contains a reference to Resolution No (7), 2007 which reads,
'The pulling out of the British White Nile Co from Block B and its removal from
entering as partner by purchasing the share of Marathon Co. refrained from the
Block.' Furthermore, Resolution No (8), 2007 reads 'Assignment to the rapporteur
of NPC and MEM to assess the assets of British White Nile Co. in Block (B) and
Ascom Co. in Block (5B) for settlement and to submit a report to NPC.' The Board
of White Nile has had no official indication of these resolutions and is
contacting government figures in Southern Sudan to account for this new
information and clarify the situation.
White Nile is taking all appropriate steps to protect its licence agreement
awarded by NilePet. Its 60% rights to Block Ba were granted in April 2005 with
NilePet retaining the rights over the remaining 40%. The Board of White Nile was
assured by the GOSS that NilePet possessed the legal title for Block Ba as all
non producing oil concessions were placed under NilePet's control in August
2004.
As a result of this agreement and in reliance on assurances from GOSS, the
Company has undertaken an extensive exploration programme including seismic
operations and identified a number of drill targets, the first of which was
being drilled at Kedelai in Block Ba, 200 km due north of Juba, in the Jonglei
State of Southern Sudan. Extensive community projects have also been initiated
underlying the Company's commitment to the People of Southern Sudan.
The Board retains its belief that the Company's licence remains legally binding.
It is seeking urgent meetings with the GOSS to clarify the situation.
* * E N D S * *
For further information please visit www.whitenile-ltd.com or contact:
Phil Edmonds White Nile Ltd Tel: 0845 108 6060
Jonathan Wright Seymour Pierce Ltd Tel: 020 7107 8000
Hugo de Salis St Brides Media & Finance Ltd Tel: 020 7242 4477
This information is provided by RNS
The company news service from the London Stock Exchange
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