GB Energy said it has formally advised the Gambian Commissioner of Petroleum that it is pulling out of negotiations after an agreement for the licences couldn't be reached.
The award of the blocks A2 and A5 was conditional on finalising the licence agreement and environmental impact assessment.
In February, GB announced it had received a letter of intent for the two wells in the Mauritania-Senegal-Gambia-Guinea Bissua-Conakry Basin in West Africa.
GB was the sole participant in the technical appraisal, the applications and the negotiations for these blocks.
The company said it would continue to seek oil and gas opportunities in West Africa.
