White Nile shifts focus to farming

LONDON (SHARECAST) – Political turmoil in southern Sudan has finally forced oil and gas explorer White Nile to change tack and seek its riches in the African agricultural sector.

The firm, set up by former England Test cricketer Phil Edmonds, had assembled a portfolio of early stage exploration licences in southern Sudan, Ethiopia, Kenya and Nigeria.

“Due to certain situations beyond the control of the board, including the fluctuating political situation in southern Sudan and the current global economic downturn, it has not been possible, to date, to fully maximise the initial perceived value of the company’s portfolio,” said the group.

It also blamed difficulties on finding funding for non-producing early stage oil & gas exploration assets in the current economic environment.

“The company’s current strategy of concentrating on oil & gas exploration is not now in the best interest of shareholders,” it said.

But White Nile thinks the agricultural sector in Africa is resilient enough to generate returns on investment even in this current environment. Its shopping list will include businesses operating in the agricultural and associated civil engineering industries.

The company, which will be required under AIM rules to make an acquisition within the next 12 months, is changing its name to Agriterra Limited.