The chief executive of Bula Resources, Mr Tom Kelly, has told shareholders the company is still waiting for ratification of an exploration and development contract in Iraq.

In a statement issued yesterday to update shareholders Mr Kelly said he would visit Iraq in the coming weeks to meet key officials and discuss the application which was made in June.

He will also meet the new Director General of Exploration at the Iraqi Oil Ministry in order "to get a hands-on understanding of the logistics and staffing requirements which will need to be addressed when the agreement is signed and the pace of operations moves into a higher gear".

The timing of the awards of contracts was now very much in the hands of government departments and the political process, he said.

In the statement Mr Kelly also updated shareholders on the firm's activities in Libya.

He said that Bula's manager in Libya had been deployed full-time in securing its applications to the Libyan government.

Mr Kelly said the company was also trying to identify and secure a revenue stream by purchasing producing assets in order to support it during the period until the Iraqi and Libyan assets are "ratified and producing cash flow".

He said Bula "has pursued 17 opportunities in nine countries over the past six months".

He added: "We are actively working on enhancing the reputation of the company in order to be accepted as the partner of choice by host governments and joint venture partners in many of the areas we are targeting.

"In this regard, Albert Reynolds (the chairman) has met with strategic industry leaders from the Middle East and West Africa as well as principals in the area of corporate finance."

Mr Kelly said he believed it was the right strategy to continue to focus on Iraq and Libya.

He added that the company's annual general meeting would be held on September 10th, when a more detailed update would be given to shareholders.