White Nile, the AIM-listed company founded by Phil Edmonds, the former England cricketer, has abandoned its oil and gas exploration business.

The company, whose stock market value briefly topped £715 million amid high hopes for its activities in Sudan, said yesterday that its plans had been thwarted by the political situation in that country.

White Nile now plans to invest in projects or companies involved in agriculture or civil engineering in central and southern Africa. It will change its name to Agriterra.

The decision is the latest twist in one of the most extraordinary companies to have listed on the stock market in recent years. White Nile made its stock market debut as a “shell” company in February 2005, with the shares listed at 10p each. Within days, they had risen to ten times that amount, amid excitement over the company’s 60 per cent ownership of Block Ba, a 67,000 sq km oilfield in southern Sudan.

White Nile struck a deal with rebel leaders to explore and develop the potentially lucrative oilfield after the rebels had come to a peace agreement with the Sudanese Government – but, crucially, before they had become part of a new administration.

White Nile quickly clashed with Total, the French oil group, which claimed that it had been awarded the same block in 1980. Total left Sudan in 1985 when civil war broke out but claimed to have kept the rights. South Sudan’s government, which owns 47 per cent of White Nile, has supported the British company throughout, arguing that it fought for the land for 20 years while Total had abandoned the country.

White Nile said yesterday: “Although the board remains fully supportive and committed to the southern Sudanese, it is recognised that there are wider political issues and, realistically, the board does not believe that the resolution of title issues relating to Block Ba will occur before the referendum on total independence for southern Sudan is held on January 9, 2011.

“The board believes that in the current economic environment, which is not conducive to the continued funding of nonproducing early stage oil and gas exploration assets, combined with the current political position in southern Sudan, the company’s current strategy of concentrating on oil and gas exploration is not now in the best interest of shareholders.”

It said that Africa’s agricultural sector was sufficiently resilient to generate reasonable returns even in the present economic environment.

White Nile shares, which reached 205p in April 2006, when the company was valued at £717.5 million, fell 0.13p to 2.53p. At last night’s closing price the company, which is believed to have about £5 million in cash – is valued at £8.8 million.

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