Bula Resources has raised £1.6 million sterling (€1.55 million) in a placing of 54.57 million new shares at 3p sterling each. The shares were last traded at 3.75p on the London Stock Exchange.
Bula said the funds would be used to pay for its activities in North Africa and the Middle East. It also said it had settled with an unnamed creditor by issuing 863,240 new ordinary shares at 5p per share. At that price, this block of new shares has a value of £43,162.
Bula shares have been rising steadily since last October when they were being traded at around 1p sterling. Its latest results showed an increase in the loss before tax to €522,000 from €405,000 in the first half of 1999.
The loss reflected difficult trading conditions in its North American operations due to continuing production problems. However, with positive sentiment restored to the oil sector, the company's interim statement was confident it was in a strong position to take advantage of the "new era of normalisation in Libya and potentially in Iraq".
The Tanaiste, Ms Harney, is expected to bring summary prosecutions against the group over several alleged breaches of company law. The move follows the report into Bula by the High Court inspector, barrister Mr Lyndon MacCann, who presented his report last July. The report was forwarded to the director of Public Prosecutions, the Irish Stock Exchange and the Central Bank.
