Bula Resources has again taken advantage of the recent phenomenal rise in its share price to raise funds for its exploration activities in the Middle East and North Africa.

Bula has raised €2.9 million after placing almost 36 million shares in the London market at 5p sterling (8.04 cents) each.

This is the second time in less than two months that it has raised money in a share placing - the group raised €1.55 million in early January when it sold shares in London at 3p sterling each.

The company's shares have risen strongly in the past few months - they were trading under 2 cents on the Dublin market as recently as last November.

Subsequently they soared to a high of 11 1/4 cents in mid-January after speculation, notably in the controversial "City Slickers" column in the Daily Mirror, that the group was on the brink of a major gas discovery in Libya.

Recently the shares have been bid up on speculation that Bula is close to a deal on oil production in eastern Iraq.

One of the potential beneficiaries of the surge in the share price is former Taoiseach and Bula chairman, Mr Albert Reynolds. Last year Bula shareholders approved an arrangement giving Mr Reynolds options over 87.5 million shares at 1p each.

The first 35 million of these options can be exercised next month, another 35 million in March 2001 and the remainder in September 2001.

At the current prices in the market - 5 3/4p sterling in London and 8 3/4 cents in Dublin - these share options are worth more than £5.5 million.