Talisman will acquire a 40% interest in Block K44, with WesternZagros holding 40% as the operator and the Kurdistan Regional Government (KRG) retaining a 20% stake. Talisman plans to spend $80 million on the block, including legacy costs and a three well commitment.

Talisman has also entered into a seismic services agreement with the KRG on Block K39 for a period of two years, following which Talisman will have the option to enter into a production sharing contract (PSC) as operator of the block with a 60% working interest and a one well commitment in the first year.

Talisman estimates exploration costs associated with the initial work program on this block to be $10 million to $15 million.

John Manzoni, president and CEO, said: This is an exciting opportunity in a world-class hydrocarbon basin. It is a great fit in terms of Talisman’s global expertise and the strategic objectives of our exploration program, with the potential to become a core producing area for us.