The extension enables the company to advance its ongoing discussions with potential partners
PetroNor has received one year extension from the government of The Gambia for the A4 offshore exploration licence.
The extension allows the company to advance its ongoing discussions with potential partners.
The Gambian government has extended the longstop date of the offshore licence until 18 October 2022.
In September last year, the oil and gas exploration and production company reached an agreement with the Gambia to regain the A4 licence and relinquish any claims related to A1 licence.
The settlement agreement enabled PetroNor to gain extension to the licence for a period of one year, ending 18 September 2021.
The company owns a 90% stake in the A4 licence, while the Gambian government holds the remaining stake.
PetroNor chairman Eyas Alhomouz said: “We are delighted to have negotiated this extension which strengthens our long-standing partnership with the Government of The Gambia. After the successful reinstatement of the license, PetroNor has progressed discussions with a number of interested parties.
“This extension will hopefully enable the Company to convert those discussions into a formal partnership agreement with a view to proving up the exciting prospectivity of A4.
“The market conditions and industry appetite for this kind of high-impact asset have vastly improved over the past few months which has solidified our confidence in realising value from this asset going forward.”
According to the company, A4 licence is located within the same proven play trend as Senegal and the Sangomar field.
PetroNor said that the licence is estimated to contain net unrisked mean prospective oil resources of approximately 2 billion barrels of oil, based on the ERC Equipoise assessment and management update.
The sub-Saharan focused company currently holds exploration and production assets offshore West Africa, including the PNGF Sud licences in Congo Brazzaville, and the Sinapa (Block 2) and Esperança (Blocks 4A and 5A) licences in Guinea-Bissau.
In February this year, PetroNor announced that it is increasing its indirect stake in the producing PNGF Sud asset from 10.5% to 16.83%.