HOUSTON, Aug 28 (Reuters) - Miner Gold Reserve

said on Thursday that its subsidiary Dalinar Energy has

submitted an improved bid for the parent company of refiner

Citgo Petroleum in a court-organized auction, with a final

decision on the winning bid expected next month.

Earlier this month, a court officer overseeing the auction

of PDV Holding, parent of Venezuela-owned U.S. refiner Citgo,

said a $5.9 billion bid from an affiliate of hedge fund Elliott

Investment Management was the strongest offer received to date,

and granted Dalinar additional time to prepare a counteroffer.

Dalinar "has materially increased its proposed purchase

price, arranged for additional financial support, and increased

the certainty of its bid in non-economic ways," Gold Reserve ( GDRZF )

said in a release.

The Bermuda-based miner, which seeks to recover a $1.18

billion claim related to expropriated assets from the auction

proceeds, did not provide further details.

In June, Dalinar offered $7.4 billion for PDV Holding, but

its bid lacked an agreement to pay holders of a defaulted

Venezuelan bond backed by Citgo equity.

In contrast, Elliott's affiliate Amber Energy secured a

payment agreement with the bondholders to settle a $2.86 billion

claim.

However, this week, creditors Gold Reserve ( GDRZF ), Siemens Energy

, Consorcio Andino and Valores Mundiales filed motions

to disqualify Amber's bid.

Delaware court officer Robert Pincus is expected to submit

his final recommendation on Friday for a winner ahead of a sale

hearing where Judge Leonard Stark will rule on the topic next

month.