THE Irish company Bula Resources is due to start its first development well in Siberia's large Salymskoye oilfield today.

The news of the development well, which is part of the run up to large scale production at the field is due to be announced to the Stock Exchange later today, according to British newspaper reports.

"We've delivered on what we promised, we're the only oil company with a full listing in London to get this far in Russia," said Bula's technical manager, Mr Tim Howell. The 1,400 sq kilometre Salymskoye field contains 500 million barrels of proven and probable reserves. Bula's 50 per cent share is an estimated £425 million in net present value terms.