Tuskar's share price fell a further 42 per cent to 0.35p on the London Stock Exchange yesterday following the warning on Wednesday that it may have to go into liquidation.

In Dublin, the shares which are priced in blocks of 10, recovered three cents to six cents, still well below the 34 cents earlier this week. Tuskar's chief executive, Mr Gene Manson, told The Irish Times it would be "several days" before the group was put into liquidation. He said a number of options would be explored, including talks with the Nigerian government and its partner Cavendish Petroleum Nigeria. Tuskar would also be seeking a resolution with the arbitration court in London.

The moves follow Tuskar's failure to resolve a dispute with Cavendish and with one of its creditors, Brovig Offshore. The dispute has led to a suspension of production of oil at Obe. Tuskar has asked one of its creditors, Allied Energy which has a 47 per cent stake in the group, to apply to the High Court for a winding up order.