Shares in oil exploration company Bula Resources fell in Dublin yesterday following an Irish Times report that Libya's National Oil Company had denied it was in negotiations with it about oil permits.

The shares, which closed in Dublin on Friday at 36 cents (for a block of 10 shares), fell back four cents in early trading to 32 cents and by midday had fallen to 26 cents. Later, the shares recovered to close at 34 cents, two cents down on the day.

Asked about the report, a Bula spokeswoman replied: "Until such time as we can ascertain the details of these claims, we are not in a position to comment."

The Irish Times report quoted a fax from the National Oil Company published in the Nicosia-based oil journal, Middle East Economic Survey. It said: "National Oil Company would like to confirm that it has neither started discussions with Bula on any of the open blocs [of territory set for exploration and exploitation] nor finalised procedures on the selection and negotiation process with all bidders."

The fax was understood to be a response to press reports that Bula had commenced negotiations on specific "packages".

Bula's chief executive, Mr John Hogan, was not available for comment yesterday. In an update to shareholders on December 18th, Mr Hogan said the Libyan group "has said that detailed discussions with bidding groups will commence in January 2001".

Bula had expressed interest in several blocs "and discussions with National Oil Company and industry partners continue", he said. Mr Hogan added that he had visited Tripoli for a week at the start of October and that the firm's technical director, Mr William Lowry, had travelled there in November. He said he planned to return to Libya early in the new year following the end of Ramadan. Mr Hogan said the National Oil Company had more than 150 blocs on offer for exploration and development investment and had opened data rooms in July 2000 so that interested companies could study the acreage.

Commenting on "my decision" to end the business relationship with Bula's local representative in Libya, Mr Hogan said this reflected the Libyans' preference to work directly with each company's executive team rather than with representatives.