UK White Nile hopes to finalise Ethiopia oil deal by year end

December 17, 2007 (LONDON) — White Nile Ltd said it is currently in negotiations to sign a production sharing agreement (PSA) in Ethiopia, which it hopes to finalise before the end of the year.

The oil and gas exploration company said it has identified deep basins, potentially containing sedimentary sections similar to that of the petroliferous Muglad and Melut Basins of Southern Sudan.

The company said the most recent development suggests that it would receive a controlling interest in a new Southern Sudanese company that would hold a 22.5 pct in the Block B consortium. It added the clarity of title for Block Ba, also in Southern Sudan, is its key priority.

In June, White Nile was informed that a Joint Executive Committee between the Government of Southern Sudan and the Government of National Unity in Khartoum had met to reach a compromise agreement with respect to certain oil concessions in Southern Sudan.

For the year ended June 30, White Nile posted a pretax loss of 1.424 mln stg against a loss of 1.418 mln last year. The company also said it is still in the exploration stage and therefore is not producing revenue

(Thomson Financial)