PetroNor E&P has announced that it had received, from the Government of The Gambia,
a 30-day extension to the longstop date of the licence option. Following positive discussions with the Government, PetroNor today announces that it has decided to exercise its right to continue with the Petroleum, Exploration, Development and Production Licence Agreement (PEPLA) for the A4 licence in The Gambia.
PetroNor and Gambia National Petroleum Corporation (GNPC) have also signed a Joint Operating Agreement (JOA) for the A4 Licence offshore Gambia. GNPC, as Government licensee, has been assigned a 10 per cent participating interest in the license. The JOA defines the operational boundaries of the PetroNor – GNPC relationship.
The terms of the PEPLA have been amended to allow the Company to phase commitments via an extended Initial Exploration Period of three years which is split into two phases of 18 months each.
This allows time for additional de-risking technical work prior to commitment to exploration drilling in the second phase. Signature of the PEPLA commits the Company to a signature bonus of USD 1 million and a minimum work program of USD 1.5 million in the first 18-month phase. PetroNor will have the option to continue the licence after the first phase and commit to drilling a well in the following 18-month phase.
“The PetroNor exploration team have been consistent and passionate advocates for the potential of this part of the Atlantic margin. It is the Company’s strategy to form a strong partnership with others to explore the identified prospects. Encouraging interest received from third parties has supported our discussions with the government of The Gambia to phase commitments and help make the licence more attractive as a farm-in opportunity. It is our shared objective that these efforts will lead to a future drilling program,” says interim CEO, Jens Pace