RNS No 7765e
BULA RESOURCES (HOLDINGS) PLC
1st July 1997


Bula Resources (Holdings) plc (Bula)

Bula announces details regarding its Libyan activities.

Over the past three years Bula has been actively seeking prime 
exploration and production acreage in Libya, a country with a highly 
developed oil and gas sector which is largely underexplored and 
which provides the potential for the discovery of significant 
additional oil and gas reserves.

In August 1996, Bula announced that it had agreed an Exploration and 
Production Sharing Agreement (EPSA) with the National Oil 
Corporation of Libya (NOC) covering blocks in the Sirte and Ghadames 
basins. Bula has negotiated a farmout agreement with a major 
international Canadian oil corporation to join Bula in exploring for 
hydrocarbons on these blocks. As a result of the farmout, which 
becomes effective on the ratification of the EPSA, the Canadian 
corporation shall carry Bula's costs for the entire exploration 
phase and provide finance for the development programme for this 
area of massive potential. The work programme involves the 
acquisition of new seismic and the drilling of several wells.

With regard to the EPSA for the G and U blocks there have been 
extensive ongoing negotiations and discussions between the Libyan 
authorities, Bula and the Canadian corporation, which would become 
the operator under the terms of the current farmout agreement with 
Bula. This has resulted in the EPSA reaching the stage where it is 
being considered for final regulatory approval.

This EPSA incorporates two blocks; the G block in the Ghadames basin 
and the U block in the Sirte basin.

G Block

The G block is a highly prospective exploration block located in 
western Libya close to the Tunisian and Algerian borders. As a 
result of previous drilling there are numerous shows and two oil 
accumulations within the block. This area is close to analogous 
Algerian production located to the west of the G block. The block 
contains multiple reservoir targets and good reservoir quality has 
already between established in the basin.

Plans have been announced for the construction of oil and gas 
pipelines that will run through the block from the Al Waffa 
Oil/Gas/Condensate Field, located 70 km to the south of the G block, 
to the Mediterranean coastline. This pipeline will then supply the 
European gas grid via the planned interconnector from Libya to 
Italy.

U Block

The U block is a highly prospective exploration block. It lies at 
the end of a trend of large reefal oilfields. Maps indicate that the 
conditions necessary for reef building extend through the block and 
that reef-like structures are present in this block. Within these 
structures there are at least three prospective horizons. Any 
potential development in this block could utilise the intensive 
pipeline infrastructure which surrounds the U block.

CC Block

Bula has also reached agreement with a major integrated Central 
European oil company to apply for additional prime acreage in Libya. 
Negotiations with the NOC for an EPSA, which are ongoing, are 
expected to conclude shortly.

The principal area included in this proposed EPSA is the CC block in 
the Sirte basin which contains the Chadar Oil/Gas/Condensate Field.

Two successful appraisal wells drilled into the field have proved 
that the structure contains significant proven reserves. After 
completing an initial study it is anticipated that production from 
these proven reserves will be rapidly achieved.

Other parts of the CC block are highly prospective with two proven 
gas/condensate structures within the block, an oil/gas discovery 
extending into the block and an oil prospect extending into the 
block.

A number of other exploration blocks are also to be included in the 
EPSA which is being negotiated for the CC block.

Bula is also reviewing and evaluating other areas of interest in 
Libya and we anticipate that further applications will be submitted 
by Bula in respect of those areas which we believe have the 
potential for successful exploration and exploitation of oil and gas 
reserves.

For further information please contact:

James Morrissey
Murray Consultants
Telephone (353-1)  6614666

Issued:  1 July, 1997
END