Agriterra Ld Regulatory News (AGTA)

30 Mar 2007 09:35

White Nile Limited30 March 2007 White Nile Ltd / Ticker: WNL / Index: AIM / Sector: Oil & Gas 30 March 2007 White Nile Ltd ('White Nile' or 'the Company') Interim Results White Nile Ltd, the AIM listed oil and gas exploration company, announces itsresults for six months ended 31 December 2006. Overview •Seismic interpretation highlights multiple targets •Four drilling locations prioritised for development •Drill rig on site near Padak in Block Ba in Southern Sudan •First well to spud in April 2007 Chairman's Statement It gives me great pleasure to report on the Company's progress towardsfulfilling its objective of becoming a leading independent oil producer focusedon Southern Sudan and the immediate region. During the period under review we have made great progress at our flagshipproject, the 67,000 sq km Block Ba in Southern Sudan. Having implemented andinterpreted an extensive seismic programme, we have identified numerous drilltargets and our first drill rig is on site and due to spud in April 2007. Southern Sudan In the last 18 months, White Nile has worked with leading oil industryconsultants and operatives and conducted an extensive seismic acquisitionprogramme on parts of Block Ba, in order to advance the block to production.Following the interpretation of high-density 2D seismic, we have identifiednumerous drill targets and prioritised four where we believe the productiveMuglad Basin extends into the concession area, including one large structure ofover 50 sq km. The contracted drill rig has been imported from Europe and is nowon-site ready for the first well to be spudded in April 2007. This occasionsignifies an important milestone for White Nile and underlines the significantprogress the Company is making. In addition to proving and developing the oil potential of Block Ba in SouthernSudan, White Nile is also focussed on building a significant communitydevelopment programme to ensure the local communities benefit appropriatelyduring the whole life of White Nile's operations. The Company has taken aproactive role in the education of local workers, the provision of general toolsand equipment to the community, logistical support to Government of SouthernSudan ('GOSS') officials in the immediate area and the development ofinfrastructure. White Nile employed over 1,000 local Southern Sudanese people tohelp repair 20 km of man made dyke between Jalle and Maar. Furthermore, it hasinvested significant sums in a land mine clearance operation undertaken by TheDevelopment Initiative in the specific areas of seismic operation and on keyroads and villages primarily in the Bor/Padak area. The Company has commissioned an Environmental and Social Impact Assessment('ESIA') study, which determines the environmental, social, technical andeconomic aspects of developing the oil potential of the concession area. Thisincludes the local infrastructure of the area, namely the construction of accessroads, accommodation camps and eventually an oil refinery, processing plant andpipeline. The ESIA is being carried out by ESF Consultants, a Kenyan basedindependent environmental management consultancy. White Nile's position with regard to the exploration and development rights overBlock Ba and the rival claim by the French oil company, Total E&P Soudan S.A('Total'), remains the same. Following assurances from the GOSS that it had theright to issue exploration and development concessions on land in SouthernSudan, the Company signed an agreement over two years ago with the state-ownedpetroleum company, Nile Petroleum Corp ('NilePet'), for the exploration anddevelopment of Block Ba. In that transaction, NilePet received a 50%shareholding in White Nile in return for a 60% interest in Block Ba, with theremaining 40% interest being retained by NilePet. In recent weeks Total has mounted a public-relations attack on White Nile andhas reaffirmed its suggestion that it has rights to develop Block Ba under theterms of an agreement with the government in Khartoum in 1980. However, theautonomous GOSS has transferred all the non producing oil concessions inSouthern Sudan to its state-owned petroleum company, NilePet, which has thepower to negotiate development agreements, such as that which exists with WhiteNile. In this context, NilePet has, in addition, entered into an agreement withAscom a European oil production company, for the exploration and development ofBlock 5b, which is contiguous to Block Ba in Southern Sudan. Total has also brought into question whether White Nile has the ability toexplore and subsequently develop an area with such high potential. The Company'sstructure lends itself to efficiency and good practice. It is able to choosefrom among the best in the world within their respective fields in seismic,demining, security, drilling and pipeline and refinery development, while takinginto account the local environment and your board has no doubt over White Nile'sability to develop Block Ba. Within 18 months White Nile has conducted seismic acquisition on parts of BlockBa. The interpretation of this seismic data has yielded a number of prospects,three of which the Company intends to drill this year. Ethiopia The Joint Study with the Ethiopian Government's Petroleum Operations Divisionover the prospective East African Rift system in the southwest of the country isprogressing well. On-going geological and geophysical work over this emergingexploration play has so far yielded positive results with detailed gravitysurveys indicating prospective depths of sediments in the northern extension ofthe Turkana Rift system. Support for these results has been obtained fromcomplementary magneto-telluric ('MT') soundings undertaken in early 2006.Follow-up MT work is expected to reinforce this interpretation. Preliminary geological studies utilising apatite fission track analyses hasindicated two possible phases of rifting, which support White Nile's explorationplay of superimposed Cretaceous and Tertiary rifts systems with a concomitantenhanced petroleum potential. In addition, the Joint Study Area is to benefitfrom a regional airborne gravity and magnetic survey that will also cover highlyprospective areas of adjacent Kenya and South Sudan. These are expected tohighlight new areas of prospectivity within the region. Results White Nile remains focussed on the development of its oil concessions inSouthern Sudan. The Company is still in the exploration stage and therefore isnot producing revenue. In line with expectations, the Company is reporting apre-tax loss of £699,200 (2006: loss of £515,434). Conclusion The past six months have seen many positive developments for White Nile. Withour committed Board and management team, continued support from the GOSS, localauthorities and people, and with the infrastructure and resources in place, webelieve that White Nile will become a leading oil producing company in SouthernSudan and the immediate area. We have strong connections with many industry specialists in seismic, de-mining,security, drilling, environmental consultancy and pipeline and refinerydevelopment to bring Block Ba eventually into oil production, whilst taking intoaccount the local environment, people and development of Southern Sudan. Withthe spudding of our first drill target scheduled for April, we have reached thenext phase in our development. We are looking forward to the next six months andthe exciting developments that we believe will come from the 2007 drillingdevelopment programme. White Nile's structure enables the owners of the resource, in this case the GOSSand the People of Southern Sudan, not only significant control but also, throughtheir shareholding in White Nile, access to world capital markets and theability to bring in technical expertise to develop Block Ba. Finally, I would like to take this opportunity to thank most particularly thepeople and the Government of Southern Sudan and the local communities, the realowners of the resources of Block Ba, for their help, cooperation and support. Iwould also like to thank the management team, shareholders and all thoseinvolved in the Company who have supported and believed in White Nile's cause,and helped the Company to reach the position it is in today. Phil Edmonds Chairman UNAUDITED PROFIT AND LOSS ACCOUNTFOR THE SIX MONTHS ENDED 31 DECEMBER 2006 Six months Six months Year ended ended 31 Dec ended 31 Dec 30 June 2006 2005 2006 £ £ £ TURNOVER - - - Net operating expenses ( 795,952) ( 775,110) ( 1,852,380) ------------ ------------ ------------ OPERATING (LOSS) ( 795,952) ( 775,110) ( 1,852,380) Interest receivable 100,587 259,676 439,372 Interest payable ( 3,835) - ( 4,569) ------------ ------------ ------------ (LOSS) ON ORDINARY ( 699,200) ( 515,434) ( 1,417,577)ACTIVITIES BEFORE TAXATION Taxation - - - ------------ ------------ ------------ (LOSS) ON ORDINARY ACTIVITIESAFTER TAXATION ( 699,200) ( 515,434) ( 1,417,577) ============ ============ ============ (LOSS) PER SHARE Basic and diluted (.219p) (.163p) (.447p) UNAUDITED BALANCE SHEET AT 31 DECEMBER 2006 31 December 31 December 30 June 2006 2005 2006 £ £ £FIXED ASSETSIntangible assets 20,453,538 13,636,597 16,855,039Tangible assets 728,479 40,072 227,907 ---------- ---------- ---------- 21,182,017 13,676,669 17,082,946 ---------- ---------- ---------- CURRENT ASSETSDebtors 2,331,426 410,020 340,137Cash at bank and in hand 10,925,879 9,467,927 6,049,114 ---------- ---------- ---------- 13,257,305 9,877,947 6,389,251 Creditors: Amounts falling duewithin one year ( 1,064,503) ( 70,604) ( 974,728) ---------- ---------- ---------- NET CURRENT ASSETS 12,192,802 9,807,343 5,414,523 ---------- ---------- ---------- NET ASSETS 33,374,819 23,484,012 22,497,469 ========== ========== ========== CAPITAL AND RESERVESCalled up share capital 329,000 317,000 317,000Share premium account 35,556,635 24,076,485 23,992,085Profit and loss account ( 2,510,816) ( 909,473) ( 1,811,616) ---------- ---------- ---------- EQUITY SHAREHOLDERS' FUNDS 33,374,819 23,484,012 22,497,469 ========== ========== ========== UNAUDITED CASH FLOW STATEMENTFOR THE SIX MONTHS ENDED 31 DECEMBER 2006 Six months Six months Year ended Ended Dec ended 31 Dec 30 June 2006 2005 2006 £ £ £Cash outflowfrom operatingactivities ( 666,663) ( 1,965,650) ( 2,052,571) Returns oninvestment andservicing offinance 96,752 259,676 434,803 Capitalexpenditureand financialinvestment ( 4,129,874) ( 3,611,608) ( 7,034,227) ---------- ---------- ---------- CASH OUTFLOW BEFORE USE OF LIQUIDRESOURCES ANDFINANCING ( 4,699,785) ( 5,317,582) ( 8,651,995) Management ofliquid resources ( 5,000,000) 5,489,316 10,525,153 Financing 9,576,550 ( 5,450) ( 89,850) ---------- ---------- ---------- (DECREASE)/INCREASE IN CASHIN THE PERIOD ( 123,235) 166,284 1,783,308 ========== ========== ========== RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS Six months Six months Year ended ended 31 Dec ended Dec 30 June 2006 2005 2006 £ £ £(Decrease)/Increase in cashin the period ( 123,235) 166,284 1,783,308 Cash outflow/(inflow) fromincrease/(decrease) inliquidresources 5,000,000 ( 5,489,316) ( 10,525,153) ---------- ---------- ---------- MOVEMENT INNET FUNDS INTHE PERIOD 4,876,765 ( 5,323,032) ( 8,741,845) NET FUNDS ATBEGINNING OFPERIOD 6,049,114 14,790,959 14,790,959 ---------- ---------- ---------- NET FUNDS ATEND OF PERIOD 10,925,879 9,467,927 6,049,114 ========== ========== ========== Notes 1. These interim financial statements do not constitute statutory accounts ofthe company within the meaning of Section 240 of the Companies Act 1985 andshould be read in conjunction with the Annual Report for 2006. StatutoryAccounts for the year ended 30th June 2006, which were prepared under accountingpractices generally accepted in the UK, have been reported on by the auditors.The report of the auditors was unqualified and did not contain statements undersection 237(2) or (3) of the Companies Act 1985. 2. (LOSS) PER ORDINARY SHARE Basic and diluted loss per share is calculated by reference to the (loss) forthe financial period and the weighted average number of shares in issue in theperiod of 318,704,918 (six months to 31 December 2005: 316,885,870, year ended30 June 2006: 316,942,466). * * E N D S * * For further information please visit www.whitenile-ltd.com or contact: Phil Edmonds White Nile Ltd Tel: 0845 108 6060Jonathan Wright Seymour Pierce Ltd Tel: 020 7107 8000Hugo 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