Calgary-based Talisman, Canada's fifth-largest independent petroleum producer, said in late July it had been approached by Repsol with regards to various transactions.

The Canadian company, which operates in North America, southeast Asia, the North Sea, Colombia and elsewhere, has long been considered a takeover target as its stock slumped in recent years on weak natural gas prices.

Repsol, meanwhile, is cash-rich since settling a two-year dispute with Argentina earlier this year over the seizure of the company's business there.

The WSJ article said that people familiar with the talks between Repsol and Talisman said a possible deal was not dead, but two of those people said discussions had frozen.

No one from Talisman was immediately available to comment.

(Reporting by Nia Williams; Editing by Leslie Adler)

Stocks treated in this article : Repsol SA, Talisman Energy Inc.