Bula Resources has again been the subject of market rumours and heavy trading in London. Shares in the exploration company have trebled in value on the FTSE in just over two months and 75 million shares changed hands yesterday.

The latest speculation centres on a UK media report of Bula activity in Iraq. Bula announced in September 1999 that it was seeking Iraqi government approval for a deal on block four in western Iraq. The managing director of Bula Resources, Mr Tony Peart, has confirmed that Bula is also seeking to apply for a separate development project in the east of the country. This region is a prolific production area and includes the well-known Kirkuk oil field.

The field that the Bula application relates to is one that has existing discovery wells and is awaiting development. Mr Peart said it would require investment to turn it into a producing field. He added that the location of the field is confidential. The continuing UN sanctions against Iraq is the main determining factor for the future development of oil production in the country. Mr Peart said Bula was looking forward to seeing the situation in Iraq normalised, but there is yet no confirmation whether or not the terms of the UN oil-for-food programme will be eased in the near future.

In Dublin Bula shares closed up 0.5 of a cent to 11 cents yesterday and the share price on the FTSE closed up 0.75p at 6.75p.

Bula's chairman Mr Albert Reynolds has benefited from the surge in the value of the company's stocks in recent months. Mr Reynolds has an agreement with Bula, enabling the purchase of up to 87.5 million shares at 1p each in three phases. He will be free to exercise his first 35 million options in March of this year but is unlikely to do so. Overall, Mr Reynolds' share options are now valued at over £6 million.