Bula clarifies position on its Libya activities

Bula Resources has complied with a request by the Irish Stock Exchange to clarify the situation regarding its activities in Libya. The request - made last week - followed a substantial fall in the Bula share price after publication of a statement from the National Oil Corporation of Libya denying it was in "negotiations" with the Irish group over packages of exploration licences.

The National Oil Corporation fax appeared to contradict the impression that Bula had given to its shareholders that it was actively pursuing a number of opportunities in the north African country.

"I have been disappointed by the amount of speculation in the press during last week about Bula's activities in Libya. I have not been able to confirm the source of the stories. However, since speculation continues I believe it is now important to issue a formal response and summarise the company's position," said Mr John Hogan, chief executive.

Bula had decided some time ago not to bid for three packages of exploration licences currently being offered by the National Oil Corporation, he confirmed.

Mr Hogan also confirmed the company's previous stated position, which was that it had expressed interest in a number of other blocks that were being offered. In addition the Irish group is seeking ratification of two exploration and production sharing agreements agreed several years ago.

Bula had originally questioned the authenticity of the fax from the National Oil Corporation as the Middle East Economic Survey - which carried the report - had not disclosed the identity of the official who sent the fax.

The statement issued yesterday did not express any doubt as to the source of the story.

Bula shares - which are quoted in blocks of 10 - closed down one cent at 31 cents. The shares had been at 36 cents before the publication of the report and had initially fallen to 26 cents.