Calgary-based Talisman Energy wants to sell all or most of its Kurdistan assets despite the military conflict in the region.
The company plans to start the sales process during the next several weeks, Reuters said Tuesday.
According to Talisman’s website, the company is “currently exploring options to dilute its ownership in the Kurdistan Region of Iraq.”
Kurdistan is a semi-autonomous region in northern Iraq.
Talisman spokesman Brent Anderson said a marketing adviser was selected but declined to identify who had been picked.
“We had anticipated going to the marketplace in the third quarter and this process has just started,” Anderson told Reuters.
Talisman holds stakes in two blocks in Kurdistan, the Kurdamir block and the Topkhana block.
The blocks cover a combined 119,000 acres.
Talisman owns a 60 percent stake and operates Kudamir and Alberta-based independent WesternZagros Resources holds a 40 percent working interest.
A well has already been spudded at Kudamir-1 and is expected to produce over 50 million cubic feet per day of gas and 2,240 barrels per day of condensate.
The companies are drilling more appraisal wells at Kudamir-2 and Kudamir-3 after initial tests showed sub-commercial flow rates.
Talisman fully owns and operates Topkhana and recently completed an exploratory well at the block.
The findings haven’t been released yet.
Talisman has decided to start the sales process despite the current conflict between Kurdish troops and fighters for the extremist group Islamic State (IS or ISIS).
Tens of thousands of Kurdish residents have fled their homes while the US undertakes a tactical airstrike and humanitarian effort to repel the IS assault.
“It’s probably not as nice of a market as they would have had six months ago. But from Talisman’s perspective their plan always seemed to be to drill that Topkhana well first and see what they have there.” FirstEnergy Capital analyst Michael Dunn told Reuters.