Sudan claim rocks boat for White Nile

CONFUSION surrounding soaraway oil stock White Nile reached new heights today after a Sudanese government official threw huge doubt on whether the company will ever be able to work in the country.

Sudan's Oil Minister, Awad al-Jaz, said that despite White Nile's deal with the new regional government in the south of the war-ravaged country, 'the only place to go for a concession is the oil ministry'.

The comments, reported by Dow Jones' newswire, will be met with glee by an army of short-sellers who have flocked to make money by gambling the White Nile phenomenon would turn sour.

Headed by former England cricketer Phil Edmonds, White Nile has been the City story of the past week. Its shares have rocketed 13-fold since listing at just 10p.

They were suspended on Wednesday at 138½p pending more details from the company on the potential and size of what it has in Sudan.

Speaking to the Evening Standard today, Edmonds insisted there was no problem, adding: 'We know what we have.'

At the time of suspension, White Nile had a value of £205.5m, despite a bank balance of just £9m, and an agreement with the regional government's own national oil company to explore a 67,500 sq km block.

The Southern Sudanese government was created by the peace agreement of 9 January and there are believed to be vast amounts of oil under the ground.

One of those betting White Nile is a bust is renowned short-seller Simon Cawkwell, nicknamed Evil Knieval.