Canada's Bayou Bend Petroleum announced it has secured contracts with the Kurdistan Regional Government of Iraq for oil exploration and development.

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Bayou Bend Petroleum, based in Vancouver, said it signed agreements for interests in three exploration and development blocks with the KRG.

Iraqi Kurdistan sits on about 45 billion barrels of reserves, just under half of the total reserves estimated in Iraq. The area is largely underexplored.

"We are very excited to have obtained three first class assets in what is undoubtedly one of the most attractive exploration regions on the planet," said BBP President and Chief Executive Officer Keith Hill.

BBP will drill three appraisal wells in the Pulkhana field, working as the operator there with a 60 percent stake. Turkish company Petoil and the KRG share the remaining 40 percent.

The company also takes an interest in the promising Arbat block and Block K42, which BBP says might contain as much as 1.1 billion barrels of oil.

BBP is obligated to pay 100 percent of the costs during exploration as well as pay bonuses to the KRG.

The blocks are near the Taq Taq field in northern Iraq. The KRG began exports from the Taq Taq and Tawke fields in June.