WNL White Nile

RNS Number:6435R
White Nile Limited
21 February 2007


         White Nile Ltd / Ticker: WNL / Index: AIM / Sector: Oil & Gas


21st February 2007

                                 White Nile Ltd

                        ('White Nile' or 'the Company')

                              Update on activities


White Nile Ltd, the AIM listed oil and gas exploration company, is pleased to
announce an update on its activities with regard to the Block Ba concession area
in Southern Sudan.


The contracted drill rig, having been imported from Europe, has now arrived in
Africa and is being transported to the Block Ba concession area. The Company,
following extensive seismic work on the block, has identified numerous drill
targets and has prioritised four where it believes the productive Muglad Basin
extends into the concession area, including one large structure of over 50 sq
km. The spudding of the first exploration well is targeted for early in the
second quarter of 2007.


The Environmental and Social Impact Assessment ('ESIA') study to determine the
environmental, social, technical and economic aspects of developing the oil
potential of the concession area, including the construction of access roads,
accommodation camps and eventually an oil refinery, processing plant and
pipeline, is in the process of being finalised. ESF Consultants, an independent
environmental management consultancy, is leading the ESIA.


The scoping phase of the ESIA has included extensive public consultation to
ensure that stakeholders' contributions are taken into account within all
studies and developments. Response from all the local communities has been
positive. They are supportive of the development of oil within the Block Ba
concession and they have an understanding that through the equity holding in
White Nile by the state owned oil company of the Government of Southern Sudan,
Nile Petroleum Corporation ('Nile Pet'), the people of Southern Sudan will be
major beneficiaries in the development of Block Ba.


With regard to the claim made by French oil company, Total E&P Soudan SA
("Total"), regarding Block Ba, White Nile would like to take this opportunity of
updating the market on the current situation, following recent press comment and
speculation. Shareholders should already be aware that in mid 2005 Total made a
pre-action disclosure application to the Court in London concerning a request
for disclosure of documentation with regard to the title rights over Block Ba.
White Nile and the Government of Southern Sudan have consistently maintained
that such an issue is not a matter for which the English Courts are an
appropriate venue.


However, following a Court of Appeal judgment, which has not addressed the issue
of justiciability, White Nile is now required to disclose to Total ten
categories of documents referred to in the Company's AIM admission document of
19 May 2005. Notwithstanding the Court of Appeal decision, both White Nile and
the Government of Southern Sudan maintain that the question of the rights over
the Block Ba concession area is a matter which should not be decided by the
Courts in England. It should also be noted that the Court of Appeal's decision
relates only to the pre-action disclosure application and no substantive
proceedings have yet been instituted by Total.


As shareholders will be also aware, in the May 2005 transaction the Government
of Southern Sudan, through its state owned petroleum company Nile Pet,
transferred a 60% interest in Block Ba to White Nile in return for a 50% equity
stake in the Company. The remaining 40% interest in the block was retained by
Nile Pet.


Having finalised the interpretation of the extensive seismic data over the
extension of the Muglad Basin carried out with the full support of the
Government of Southern Sudan and the local communities, the Board looks forward
to commencing drilling on Block Ba and assisting in expediting the development
of the oil industry in Southern Sudan.


                                * * 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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