Oryx said it submitted a declaration to the semiautonomous Kurdistan Regional Government that the prospect in the Hawler license area was an attractive commercial prospect.
The company said in a statement Monday it was conducting "an extensive appraisal program" to determine how much oil was in the field, but said it was declaring it a commercial prospect now because it was proceeding with the development of production facilities.
"Production [is] intended to commence in the second quarter of 2014," the company said.
It offered no estimate of the reserve potential from Demir Dagh 2.
The Korean National Oil Corp., a minority partner for Oryx at Hawler, said last year yielded 10,000 barrels of oil per day during initial testing in the area.
The central and Kurdish governments in Iraq are at odds over who controls what aspects of the energy sector.