BULA Resources (Holdings) Ltd has settled its legal action against former chairman and chief executive Mr Jim Stanley. Under the settlement terms, Mr Stanley is to pay a "contribution" of £90,000 to Bula, which had claimed that he was involved with Mir Oil Development Ltd, a Russian company connected to deals in which Bula lost £20 million. Mir received 101.5 million Bula shares in exchange for Siberian oil assets in the 1990s. Mr Stanley benefited personally by £600,000 from the subsequent sale of some of these shares by Mir, according to an inspector appointed by the Tanaiste, Ms Harney, to look into the deal in 1997. The proceedings brought by Bula against Mr Stanley have been struck out with no order as to costs.

Mr James Gilhooley SC, for Mr Stanley, said he was consenting on behalf of his client to the application by Bula for the orders relating to Mir Oil.

Yesterday, Miss Justice Carroll made an order directing Mir Oil to transfer unsold Bula shares issued in favour of Mir to Bula Resources. Mr James O'Callaghan, for Bula Resources, said he was seeking an amendment to a claim brought by his clients against Mir Oil, which had never appeared to answer the claim. The Mir company would be notified that the matter will be back in court on December 11th.

The settlement with Mr Stanley was not announced in court. It is understood that the £90,000 payment is a contribution towards the substantial costs incurred by Bula in taking its case against Mr Stanley.

A spokesman for Ms Harney said yesterday that the report of her inspector "spoke for itself" and that she had no further comment to make.