Bula Resources has raised €1 million (£792,830) in a share placing to allow the company expand its activities in Africa, the Middle East and the US. More than 69 million shares were placed at a price of €1.45 per share.

One million shares were bought by Bula managing director, Dr Tom Kelly, while 14 million were purchased by Mr Omar Yazigi, Bula's manager in Libya. The remaining 54 million shares were placed with private investors. Bula chairman Mr Albert Reynolds said the share purchase by Dr Kelly and Mr Yazigi demonstrated management's belief in the company's future prospects.

Bula has operations in Libya and Iraq and recently negotiated the purchase of a US oilfield. It also concluded an agreement in principle to buy a 40 per cent interest in a former Tuskar oil field in Nigeria.

The company said an executive team was due to travel to the Middle East, an area where it has suffered disappointments in winning licences in the past, to further its interests there.