White Nile says first exploration well in S. Sudan to start in 2007
Feb 21, 2007 (LONDON) — The English oil producer White Nile Ltd today said it expects to spud the first exploration well on the Block Ba concession in South Sudan for early in the second quarter of 2007t, said a press release issued by the company today.
White Nile’s contracted drill rig, having been imported from Europe, has now arrived in Africa and is being transported to the Block Ba concession area in Southern Sudan.
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.
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.
DOCUMENTS DISCLOSURE
With regard to the claim made by French oil company, Total SA, regarding Block Ba, White Nile said would 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.” said a press release issued by the White Nile.
However, following a Court of Appeal judgment, White Nile is now required to disclose to Total ten categories of documents referred to in the Company’s AIM admission document of May 19, 2005.
Despite 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, the statement said.
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.
(ST)