Nile Valley Petroleum Announces Farming Out of 30% Participating Interest in North Sudan’s Blocks 9 and 11

Citadel Capital's Sudanese oil exploration platform to accelerate prospecting and drilling program for the coming 12 months

Citadel Capital’s Sudanese oil exploration platform to accelerate prospecting and drilling program for the coming 12 months

Nile Valley Petroleum Ltd (NVPL), Citadel Capital’s (CCAP.CA on the Egyptian Exchange) Platform Company in the Sudanese oil exploration sector, announced today farming out of 30% participating interest in two exploration blocks in Northern Sudan.

Under the terms of an agreement announced today, Sudapet, the state-owned Sudanese oil company, will increase its participating interest in Blocks 9 and 11 to 59% from 29%, paying US$ 10 million for the additional interest. At the same time, NVPL will reduce its participating interest to 41%. Under this agreement, NVPL will be entitled to recover almost all of the recoverable cost pool ― US$ 73 million ― for Blocks 9 and 11.

“As lead shareholder, Citadel Capital has been funding NVPL’s monthly running costs, including salaries, accrued payables and state entitlements, for some time now,” said Alaa El-Fas, Principal at Citadel Capital, the leading private equity firm in the Middle East and Africa with US$ 8.7 billion in investments under control in 15 industries spanning 14 countries.

“This agreement will provide NVPL with US$ 10 million in return for the 30% transferred participating interest in Blocks 9 and 11. The consideration will be used to meet NVPL’s obligations to fund a budgeted work program mainly in the two blocks,” he added.

NVPL’s interest in its southern Sudanese concession remains unchanged at 78%. The two northern plots are together approximately one-and-a-half-times as large as Egypt’s offshore Gulf of Suez zone, while the southern block (unaffected by this transaction) is nearly three times as large as the Gulf of Suez offshore area.

“NVPL is a long-term investor in Sudan,” El-Fas concluded. “This agreement allows us to accelerate exploration work at these key concessions, bringing us closer to the point of discovery.”

Citadel Capital’s indirect ownership of NVPL stands at approximately 15%.

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Citadel Capital (CCAP.CA on the Egyptian Stock Exchange) is the leading private equity in the Middle East and Africa. Citadel Capital focuses on building regional platforms in select industries through acquisitions, turnarounds, and greenfields executed via Opportunity Specific Funds. Citadel Capital’s 19 OSFs now control Platform Companies with investments worth more than US$ 8.7 billion in 14 countries spanning 15 industries, including mining, cement, transportation, food and energy. Since 2004, the firm has generated more than US$ 2.2 billion in cash returns to its co-investors and shareholders (on investments of US$ 650 million), more than any other private equity firm in the region. Citadel Capital is the largest private equity firm in Africa by PE assets under management (2006-2011, as ranked by Private Equity International). For more information, please visit www.citadelcapital.com.

Nile Valley Petroleum Limited (NVPL) is Citadel Capital’s Sudanese oil and gas exploration and production platform. In June 2008, the company acquired participating interests in three highly promising concessions in North and South Sudan (Blocks 9, 11, and A) and is currently engaged in the exploration of all three assets. The three blocks cover a total area of 263,718 km2.

For more information, please contact:

Ms. Ghada Hammouda
CMO & Head of Corporate Communications
Qalaa Holdings

g...@qalaaholdings.com

Tel: +20 2 2791-4439
Fax: +20 22 791-4448
Mobile: +20 106 662-0002