Resolutions which included the granting of share options of 87.5 million penny shares to the former Taoiseach, Mr Albert Reynolds, were passed at an extraordinary general meeting of Bula Resources yesterday.

According to the notice of the meeting, the option scheme is "a special once off arrangement" because his Libyan and Iraqi contacts "are expected to significantly enhance the company's position in these two countries". Mr Reynolds has options over the shares at 1p each, with some exercisable after a year and the remainder after two years and 30 months. He could gain substantially, if the shares rise from their current 1p value on the market, while other directors are also to get options.

Bula now has over 1.9 billion shares in issue following approval of the placing of a further 63 million ordinary shares yesterday.

Shareholders, a number of whom described themselves as "long-suffering", following the near-collapse of the company expressed reservations about the share option schemes applying to the new board members and the losses some of them had accrued after buying shares at prices of up to 50p.

Mr Reynolds said he could empathise with the sentiments but the company had to be driven forward now. The board's responsibility was to increase shareholder value "and we will be judged by that".

The contacts which the Mr Reynolds has in Libya and Iraq were also questioned.

Mr Patrick Kennedy referred to the details of Mr Reynolds contained in the notice of the meeting which refer to his "extensive diplomatic relationships in the Middle East and North Africa". Mr Kennedy said Mr Reynolds had "insofar as this particular message is concerned" cultivated the friendship of two dictatorships.

"When those dictatorships are overthrown, those who have been their friends will pay a price and I do think it is ill of you to make a great play of those friendships," he said. Mr Reynolds said he had met the speaker of the Iraqi parliament while on a humanitarian mission following his involvement with the Northern Irish peace process. He had no intention of involving himself in the politics of the country, he said, and he was not claiming any "extreme influence".

Mr Reynods and the new management are now trying to revive the company's fortunes, after Bula's former managing director, Mr Jim Stanley was heavily criticised by a Government-appointed inspector after the company invested £12.3 million in deal with a Russian oil company. The inspector found that Mr Stanley benefitted from the deal.

"We can be profitable in good times or bad. That is the real strength of this company," Mr Reynolds said.

Mr Tony Peart, Bula's new managing director said that in the medium term, the company's Libyan prospects were the most attractive and there were developments there in developing its contracts, following the lifting of the UN embargo.