Bula has reported losses of £301,000 in the first half of 1998, up from £221,000 in the same period last year. Bula said trading conditions at its North American operations have been "extremely difficult" over the six-month period, given the substantially lower prices for oil sales.

Its performance has also been affected by a marked reduction in oil and gas production volumes due to production problems at the Main Pass 41 production facility in the Gulf of Mexico. This is currently being upgraded. The group's working capital position has improved this year as a result of the share placings concluded early this year.