WNL White Nile

    RNS Number : 5976J
  White Nile Limited
  05 December 2008
   

    White Nile Ltd / Ticker: WNL / Index: AIM / Sector: Oil & Gas
    5 December 2008
    White Nile Ltd ('White Nile' or 'the Company')
    Proposed Change of Name, Adoption of Investing Strategy and Notice of EGM

    White Nile Ltd, the AIM traded oil and gas exploration company, announces a proposal for the future operation of the Company and hereby
gives notice that an Extraordinary General Meeting of the Company will be held at Elizabeth House, Les Ruettes Brayes, St Peter Port,
Guernsey, on Tuesday 6 January at 8.30 a.m. 

    Background 

    Since listing in 2005, White Nile has assembled a portfolio of early stage exploration licences in Southern Sudan, Ethiopia, Kenya and
Nigeria. The development of these assets has been on-going and the Company has invested funds in these exploration projects in order to
evaluate their respective hydrocarbon potential. However, 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.

    On 22 October 2008, the Company provided shareholders with a detailed update on the current situation in Southern Sudan and subsequently
obtained shareholder approval to convert the 155 million Ordinary Shares held by the Government of Southern Sudan ('GOSS') through Nile
Petroleum Corporation Limited into non-voting deferred shares. These shares will remain deferred until complete clarity of title can be
given as to the Company's position within Block Ba or an acceptable position within a consortium to develop an enlarged Block B is agreed.
Although the Board remains fully supportive and committed to the Southern Sudanese, it is recognised that there are wider political issues
which are the current focus for the GOSS and realistically, the Board does not believe that the resolution of title issues relating to Block
Ba or the establishment of an acceptable consortium in respect of Block B will occur before the referendum on total independence for
Southern Sudan is held on 9 January 2011. 

    The Board believes that in the current economic environment, which is not conducive to the continued funding of non-producing early
stage oil & gas exploration assets, combined with the current political position in Southern Sudan, the Company's current strategy of
concentrating on oil & gas exploration is not now in the best interest of shareholders.  

    Investing Strategy 

    Following an extensive review of alternative strategies, the Board has identified the agricultural sector in Africa as being an area of
activity which it believes is resilient enough to generate returns on investment even in this current economic environment.  

    Accordingly, the Board is proposing that the Company seeks to acquire or invest in businesses or projects operating in the agricultural
and associated civil engineering industries in Africa (the 'Investing Strategy').  

    The Company will, if Shareholders approve the adoption of the Investing Strategy, become an investing company under the AIM Rules and
will be required to make an acquisition or acquisitions which constitute a reverse takeover under the AIM Rules or otherwise implement the
Investing Strategy to the satisfaction of the London Stock Exchange within twelve months of the approval of the Investing Strategy by
Shareholders.

    The Board proposes that the Investing Strategy will be:

    *     to invest in and develop projects;
    *     to acquire companies; and/or
    *     to acquire interests in companies,

    whose operations comprise agricultural businesses or associated civil engineering projects and whose operations at the date of
acquisition are principally in central and southern Africa. The Company's investment objective is to provide Shareholders with an attractive
return on their investment predominantly through capital appreciation generated by the growth of any acquired businesses or interests.

    In particular, the Directors will seek to invest in businesses or participate in projects with the following criteria:

    *     they are located in areas which are attracting substantial foreign investment;
    *     they have potential for rapid sustainable growth; and
    *     they already possess a proven business model which is expected to provide attractive returns on capital. 

    The Directors have many years' experience working with and for companies operating in Africa. They will use their extensive business
contacts and knowledge to source the most attractive transactions and assess potential targets for acquisition. Accordingly, it is
anticipated that initial due diligence of any possible acquisition target will be carried out by the Directors who will seek specialist
advice as they deem necessary.

    The Board intends that the Company will be an active investor and will seek to add substantial value, both operationally and
strategically, to the businesses or assets acquired. The Board intends to focus on owning the whole or majority interests in a small number
of businesses, but may make minority investments if suitable opportunities arise.  

    In light of the new circumstances described above, the Board is proposing that the Company shall change its name to "Agriterra Limited".


    At the EGM, resolutions will be proposed as follows: 

    1.    To approve the change of name of the Company to "Agriterra Limited"; and

    2.    To approve the adoption of the Investing Strategy.

    The Circular containing the Notice of the EGM will be posted to shareholders shortly and will be made available on the Company's
website, www.whitenile-ltd.com.

    * * ENDS * *

    For further information please visit www.whitenile-ltd.com or contact:
                                
 Phil Edmonds     White Nile Ltd                 Tel: 0845 108 6060
 Hugo de Salis    St Brides Media & Finance Ltd  Tel: 020 7236 1177
 Jonathan Wright  Seymour Pierce Ltd             Tel: 020 7107 8000



This information is provided by RNS
The company news service from the London Stock Exchange
 
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