Bula Resources has reported a reduction in pre-tax losses in the six months to the end of June from £575,000 (€730,000) to £497,000 (€631,000). The company said yesterday it was continuing its efforts to acquire exploration and field development opportunities in Libya and Iraq and believed it was well placed to secure an attractive mix of these projects.

Turnover fell to £96,000 from £245,000, mainly due to the absence of sales of Iraqi oil under the UN Oil-For-Food Programme. The company's cash position was further improved though as a result of the raising of £4.1 million in a share placing. Bula chairman former Taoiseach Mr Albert Reynolds said negotiations for the award of a mixture of development and exploration projects were continuing with the National Oil Corporation in Libya. Discussions are ongoing with a number of third parties to form joint ventures to exploit the assets acquired.