BULA Resources, which announced the abrupt departure of its executive chairman, Mr Jim Stanley, on Tuesday, has postponed the start of production at its Siberian oil well for about six months.
It had planned to put well 705 in its Salymskoye oilfield in western Siberia into production in the second quarter of this year. However, Bula in a brief statement yesterday, said the results and data from the well will require further technical assessment by the company. "The early onset of the spring thaw made it impossible for the contractor to undertake the announced initial 1997 workover programme", Bula explained. "This programme will not now start until the winter of 1997." No one was available from Bula for further comment.
Six months ago Bula announced that it had successfully tested oil at the field, in which it has a 59 per cent stake. The other 50 per cent of the well is owned by Russian group, Khantymansiyskneftegasgeolocica. It tested at a rate of 150 cubic metres per day, or 942 barrels per day, on an 8mm choke, over a four day test period. That drilling had been slowed up by delays caused by poor Russian equipment.
Bula had been embroiled in a row with two of its Russian directors last year. This led to a legal wrangle but following a settlement they left the board.
Mr Stanle, who resurrected Bula in 4987, resigned from the company to "pursue his other mining interests". He is chairman of Ovoca Resources and industry sources say he will be focusing on this company in the future.
Mr Tom Fitzpatrick, a non executive director has become interim chairman, Mr Pat Mahony, finance director, has been appointed interim managing director while company secretary Mr W. Walpole has become interim chief financial officer.
Bula said it would intensify its efforts in Libya where it is in the process of concluding an exploration and production agreement with an unnamed Canadian oil company.
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