Both Napoleon and Hitler came to grief in Russia, the ambitious push westward hamstrung by logistical disasters, inhospitable terrain , geographic isolation and dogged local resistance. A pity that mining group Bula Resources, like other before them, didn't pay more attention to the lessons of history before venturing into its disastrous investment in the Salymskoye Siberian oil fields, now the subject of a Government inquiry and legal action by the company. The dispute with its Russian partners has had massive consequences on Bula's bottom line earnings. An exceptional provision of £12.3 million arising from the Russian debacle, plus some £244,000 in legal fees, was the primary factor in accumulated losses of over £30 million by the end of last year. Results this week show that at an operating level revenue of £463,000 from oil and gas sales was wiped out by £542,000 incurred in the cost of sales. New cash of £364,000 at the end of 1996 has vanished with Bula carrying a net debt of £98,000 at the end of last year.

Bula considers that its financial position has improved since the end of last year and that it is capable of funding all its anticipated exploration commitments. However, given its colourful track record and uncertain future, the shares seem likely to languish in the penny stock bracket.