Talisman Energy Inc. says it has been approached by Spain's Repsol SA as well as other parties over potential deals.
The Calgary-based oil and gas company cautioned that "there is no assurance that any transaction will be agreed."
Talisman shares jumped 55 cents or more than 12 per cent to $4.85 on the Toronto Stock Exchange in early afternoon trading.
This is the second time that expansion-minded Repsol has approached Talisman, which is trying to cut costs by selling assets.
Talisman said in late July that Repsol had made overtures concerning "various transactions" but it appears nothing came of those talks.
Talisman has been viewed as a takeover target ever since activist U.S. investor Carl Icahn disclosed a stake in the company more than a year ago.
The plunge in global oil prices have enhanced the attractiveness of companies such as Talisman and Repsol has been looking to buy assets at lower prices.
Bloomberg reported on Monday that Talisman and Repsol are in talks about potential deals, including the sale of the entire company.
"Until such time as it is appropriate to make a public announcement on any potential transaction, Talisman does not intend to make any further comment on this matter," the company said in a news release.
Talisman's two core operating regions are the Americas – North America and Colombia – and Asia-Pacific.
Hal Kvisle, Talisman's chief executive, voiced frustration last month with the slow pace of the restructuring.
"On the pace of dispositions, we'd grade ourselves as a little bit frustrated," he said on the company's second-quarter conference call.
Talisman's North Sea assets, for example, have proven to be a difficult sell due to their unreliability and spending commitments to a Chinese partner.