Irish exploration company Tuskar Resources announced today that its board has resolved to invite one of its creditors, Allied Energy Limited, to apply to the High Court for the winding up of the company under applicable provisions of Irish law.
This action follows intensive efforts to resolve a dispute between Tuskar and its partner in Nigeria, Cavendish Petroleum.
The dispute emanates from a 'farm in' agreement whereby Tuskar had the right to act as the operator of the Obe oil field under a licence granted to Cavendish by the Nigerian government.
However Cavendish has sought a greater share of the Obe field's oil revenues from Tuskar and production at the well has stalled.
Tuskar Managing Director, Mr Gene Manson, said in a statement today "We have done everything possible to deal with the actions of our Nigerian partner, Cavendish, and we are surprised and dismayed that the Nigerian Department of Petroleum Resources will not act expeditiously to resolve this matter."
The failure of Cavendish to honor this agreement has forced Tuskar to take the extraordinary action of seeking to wind up its affairs, and we are hopeful that the Irish court will be able to obtain the appropriate redress of this matter on behalf of the creditors and stockholders of Tuskar."