Canadian oil and gas producer Talisman Energy Inc. said Monday it will acquire stakes in two oil-drilling regions within Iraq's Kurdistan region at a cost of more than $300 million.
The Calgary-based company will take a 40 percent stake in one of the production blocks, which it will share with WesternZagros Ltd. and the Kurdistan Regional Government. Costs for that block, including past expenses and a commitment to operate three wells at the site, are expected to total $80 million.
Talisman's interest in the second block covers a two-year seismic services agreement, followed by the option to take a 60 percent production stake for at least a year. Initial work is expected to cost $10 million to $15 million.
In addition, the company will pay at least $220 million to improve the infrastructure in the region.
Talisman shares rose 51 cents, or 2.3 percent, to $22.46 in morning trading.
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