Although for many shareholders it would be a case of once bitten twice shy, Bula Resources is reemerging as an interesting exploration stock. In the heady days of 1994, it was seen as a good buy at 3p (now trading at about 1p) after it bought into Russian oil field licences. All that led to tears, but now with a new management team which includes the astute Albert Reynolds, it is gambling on its Iraqi and Libyan interests. "A Fresh Start" was the title of its presentation at this week's e.g.m.

It is counting on Libya, in particular, to be reconciled with the international community following the lifting of the UN embargo.

But it remains for the Americans to lift trade sanctions and for Bula to finalise work programme negotiations with the Libyans before the way is opened for Bula's licences to be developed.

Mr Reynolds's deal with Bula, gives him share options of 87.5 million shares - more than four times the options of the managing director, Tony Peart. Mr Reynolds is enthusiastic about the low production costs of the two countries. Libya, he said, has a production cost amount to between $1 (94 euro cents) and $1.75 per barrel while, in Iraq, the cost was in cents and not in dollars.

Much hinges on how these two countries develop relations with the international community but with Morgan Grenfell and Capital International on board, Bula may be in for some interesting times.