Bula Resources has issued a statement saying its new Libyan investors are not linked to the ruling regime of Col Muammar Gadafy. Referring to unspecified news reports, the company, which is chaired by former Taoiseach Mr Albert Reynolds, said the new investors should not be referred to as "an investment arm of the Libyan government".

One Nine Investment International, a subsidiary of the Gaddafi International Charitable Foundation, bought a 2.2 per cent stake in Bula this week for €900,000 (£708,800). The foundation is run by Mr Saif al-Islam Gadafy, a son of the Libyan ruler.

Nobody at the company was available for comment yesterday on why it had taken the step of issuing a statement to the stock exchange. Bula is awaiting a decision from the Libyan National Oil Company on applications to explore in two areas in Libya. The company's original partner, Canadian Occidental, withdrew and the Libyan authorities have yet to approve Bula's new partner, whose identity has not been disclosed.

The foundation now owns 50 million Bula shares, while O&M Management - a Libyan investment company registered in Malta - bought another 25 million shares in Bula last week.