Gambiaj.com – PetroNor E\&P Ltd. is preparing for a pivotal phase in its West African operations, with eyes firmly set on The Gambia’s A4 offshore block, as the company reported its first-quarter financial results for 2025. The block has recently been granted an 18-month extension and is due to expire in November 2025 unless PetroNor advances to the next license phase, which includes drilling commitments.

Speaking recently on the company’s Q1 performance, CEO Jens Pace highlighted PetroNor’s strategic focus on the A4 License — a deepwater exploration block in The Gambia, where the company holds a 90% stake. “In The Gambia, we have a pure exploration play in deep water,” CEO Jens Pace said.

However, as the November deadline nears, PetroNor continues to pursue its farm-out strategy aimed at reducing its 90% stake in the A4 block to between 30% and 50%. This approach, common in high-cost exploration environments, would allow the company to share financial risk while preserving significant exposure to any discoveries.

“It’s targeting analogous prospects to those that have proven successful in the Sangomar field in northern Senegal. This is a proven basin, and we’ve been progressing on the technical description of these prospects while working to attract partners.”

Located in a hydrocarbon-rich region and supported by encouraging seismic data, the A4 block is seen as one of PetroNor’s most promising frontier assets. According to the CEO, the company’s ongoing seismic inversion work has strengthened confidence in the block’s potential.

The company’s internal assessments, including those provided by Dr. Adam Law, a seasoned geoscientist and director at ERC Equipoise Ltd., estimate recoverable resources in the A4 block to include 2P (proven and probable) reserves of 17 million barrels and 2C (contingent) resources twice that amount. Dr. Law, with over 18 years of industry experience, has formally endorsed the inclusion of this data.

“I think the key takeaway from the metrics is that we have 2P reserves of 17 million barrels and 2C resources roughly twice that amount. This provides a solid foundation to sustain high levels of production going forward,” CEO Jens Pace explained.

The A4 license carries a well commitment, with drilling required by 2026 under the terms of the current agreement. Pace stressed that the current phase is focused on completing technical preparations and securing the right partner to move forward with exploration drilling.

“The 3D seismic conversion we’ve undertaken has given good support for the prospectivity of these reservoirs. Sangomar has been performing very well, and the similarities are encouraging. Our seismic inversion appears to indicate oil-bearing formations within our license area,” he added.

Despite the forward-looking investment, PetroNor reported a stable financial performance for Q1 2025. The company recorded revenues of $13.9 million and maintains a solid cash position of $7.5 million, with no outstanding debt — a position analysts see as favorable for its planned expansion.

However, the company’s stock experienced a minor dip of 1.49% following the earnings release, closing at $13.4.

Looking ahead, PetroNor’s strategy hinges on both geological promise and commercial collaboration. The company is working closely with The Gambia National Petroleum Corporation (GNPC) to identify partners willing to share in the risks and potential rewards of deepwater exploration.

“We’re excited by what we’re seeing,” said Pace. “We continue to finalize our technical work and remain hopeful that we can bring in a strong partner to carry the A4 license into its next phase — and ultimately, into drilling.”

As the November 2025 deadline approaches, all eyes will be on whether PetroNor can turn promise into production in Gambian waters.