Sonoro said it met with Iraqi officials during the first quarter of 2014 to discuss exploration, production and development of bitumen, or oil sands, in Iraq.
"The company has received a positive response to its efforts, and management is of the opinion that it is feasible to achieve a form of federal approval to pursue the development," the company said in a statement Thursday.
Bitumen is a viscous form of oil found primarily in the Athabasca deposit in Alberta, Canada. Its viscosity means it requires special heating processes to refine.
Sonoro said it was optimistic about its potential to explore the resource in Iraq, but cautioned there are no guarantees approval would be granted.
Iraq holds general elections in late April. The company said it expected some regulatory delays given the length of time it may take to form a new Iraqi government.
Sonoro offered no prospect for the oil sands potential in Iraq.
The Organization of Petroleum Exporting Countries said Iraqi oil production from January to February increased 13 percent to 3.3 million bpd.