Interim Results

29 Mar 2006 12:03

White Nile Limited29 March 2006 White Nile Ltd / Ticker: WNL / Index: AIM / Sector: Oil & Gas 29th March 2006 White Nile Ltd ('White Nile' or 'the Company') Interim Results White Nile Ltd, the AIM listed oil and gas exploration company, announces itsinterim results for the six month period ended 31 December 2005. Chairman's Statement I am pleased to announce our interim results for the period ended 31 December2005 and update our shareholders on the developments being made. We have madeprogress in a number of areas and remain committed to developing White Nile intoan oil and gas exploration and production company focussed in Southern Sudan andthe surrounding region. During the period we have worked closely with our partners, the new Governmentand people of Southern Sudan, to commence the development of Block Ba inSouthern Sudan. We appointed Canadian company Terra Seis International toconduct an extensive 2,000 km of high resolution seismic evaluation programme inthe block, which will enable us to identify drill targets and help us understandthe oil potential of the area. As previously reported, a camp has been established at Padak, 2 km from theairstrip in the western section of Block Ba north of Bor and we have brought ina huge amount of equipment including survey and drill equipment, explosives,ARGO's, airboats, generators, accommodation and trucks. Additionally a forwardcamp has been established at Panyong north of Padak for further drillingactivities. The major shipment of dynamite is now on location which means we canspeed up the seismic operations and the well targeting process. Our office inJuba is currently being refurbished and should open in the near future. Recently a number of analysts, investors and brokers visited Southern Sudan.They met Vice President Riek Machar as well as the Commissioner and localcouncillors of the Jonglei Province, where the extension of the productionfairway of the Muglad area of Block Ba is located and where White Nile's currentseismic programme is focussed. The Sudanese officials all confirmed theirsupport for White Nile and underlined their commitment to helping develop theoil potential in their regions. On the socio-political level we have been actively assisting the local communityand helping the area regenerate as part of White Nile's commitment to socialdevelopment. Firstly we have been training local people to help us in thedevelopment of the projects, as we see the training of key workers being crucialto the development of Southern Sudan. We have appointed a social programmecoordinator who has already established a local education programme at Padak andhas organised the delivery of essential development items including flourgrinding, sewing and brick making machines. In Ethiopia, I am pleased to report that our consultants, in conjunction withthe Ministry of Mines of the Federal Democratic Republic of Ethiopia, havecompleted the first half of their initial geophysical programme ofmagneto-telluric and gravity surveys in the 'Southern Rift Basins'. Preliminaryinterpretation of data already gathered is now underway, which once completedshould enable us to understand the future prospectively of the region. I'd like to take this opportunity to thank Philip Ward for his valuableassistance and input since he joined us as Chief Operations Officer in November.As reported, he has over 25 years executive experience within the oil and gasindustry and has spent considerable time in Sudan. In particular, from 2001-2005he worked extensively on Block 5a which is an extension of the productionfairway in the north of the Muglad Basin. As shareholders will already know, there is a competing claim on Block Ba fromFrench oil company Total. We believe we have security of tenure. Therefore, wehave been working very closely with our partners, the Government of SouthernSudan, Nile Petroleum Corporation Ltd, local government and the people ofSouthern Sudan to progress the project. We have strong support from ourinvestors and feel confident that we can reward all parties by creating aSouthern Sudan focussed oil company with the full support of the Government ofSouthern Sudan. Results We are currently an exploration company and are not yet in a position togenerate revenue. For the period under review we recorded a loss of (£515,434).We have raised circa £16 million to date which will be utilised for workingcapital and to develop our activities in Southern Sudan and the immediateregion. Conclusion White Nile aims to become an independent oil and gas producer focussed inSouthern Sudan and the surrounding region. We have been very active indeveloping international and local partners to secure and develop our assets. Wehave started the 2,000 km seismic programme and are now fully operational inSouthern Sudan. With an equity stake in White Nile, the Government of SouthernSudan has a substantial interest in its own assets. We continue to develop ourinterests in the region and look forward to an exciting year in 2006. Phil Edmonds Chairman UNAUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE SIX MONTHS ENDED 31 DECEMBER 2005 Six months Period ended ended 31 December 30 June 2005 2005 £ £TURNOVER 0 0 AIM admission costs 0 (215,186)Net operating expenses (775,110) (322,025) OPERATING LOSS (775,110) (537,211) Interest receivable 259,676 143,172 (LOSS) ON ORDINARY ACTIVITIES BEFORE TAXATION (515,434) (394,039) Taxation 0 0 (LOSS) ON ORDINARY ACTIVITIES AFTER TAXATION (515,434) (394,039) (LOSS) PER ORDINARY SHARE Basic and diluted (0.163p) (0.273p) UNAUDITED CONSOLIDATED BALANCE SHEET AT 31 DECEMBER 2005 31 December 30 June 2005 2005 £ £FIXED ASSETSIntangible assets 13,636,597 10,029,688Tangible assets 40,072 42,182 13,676,669 10,071,870 CURRENT ASSETSDebtors 410,020 0Cash at bank and in hand 9,467,927 14,790,959 9,877,947 14,790,959 Creditors: Amounts falling due within one year (70,604) (857,933) NET CURRENT ASSETS 9,807,343 13,933,026 NET ASSETS 23,484,012 24,004,896 CAPITAL AND RESERVESCalled up share capital 317,000 310,000Share premium account 24,076,485 17,088,935Shares to be issued 0 7,000,000Profit and loss account (909,473) (394,039) EQUITY SHAREHOLDERS' FUNDS 23,484,012 24,004,896 CONSOLIDATED CASH FLOW STATEMENT FOR THE SIX MONTHS ENDED 31 DECEMBER 2005 Six months Period ended ended 31 December 30 June 2005 2005 £ £ Cash (outflow)/inflow from operating activities (1,965,650) 326,748 Returns on investment and servicing of finance 259,676 143,172 Capital expenditure and financial investment (3,611,608) (1,012,896) CASH (OUTFLOW) BEFORE USE OF LIQUID RESOURCES AND (5,317,582) (542,976)FINANCING Management of liquid resources 5,489,316 (14,525,153) Financing (5,450) 15,333,935 INCREASE IN CASH IN THE PERIOD 166,284 265,806 RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS Six months Period ended ended 31 December June 2005 2005 £ £Increase in cash in the period 166,284 265,806 Cash (inflow)/outflow from (decrease)/increase in (5,489,316) 14,525,153liquid resources MOVEMENT IN NET FUNDS IN THE PERIOD (5,323,032) 14,790,959 NET FUNDS AT BEGINNING OF PERIOD 14,790,959 0 NET FUNDS AT END OF PERIOD 9,467,927 14,790,959 Notes1. The financial information contained in this unaudited interim report does notconstitute statutory accounts as defined in section 240 of the Companies Act 1985. 2. LOSS PER ORDINARY SHARE Basic and diluted loss per share is calculated by reference to the loss for thefinancial period and the weighted average number of shares in issue in the period of316,885,870 (period ended 30 June 2005: 144,342,105) * * E N D S * * Contacts: Phil Edmonds White Nile Ltd Tel: 0845 108 6060 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