Shares of Obsidian Energy Ltd fell as much as 4% pre-market on Friday after Alberta’s energy regulator said the Canadian oil and gas producer triggered a series of earthquakes in the province between November and March.
The Alberta Energy Regulator’s (AER) environmental protection order against Obsidian came late on Thursday, following a separate study published by Stanford University and University of Alberta that said injection of wastewater from oil sands operations in the area caused one of the strongest earthquakes in the history of the region.
An investigation conducted by an AER’s branch concluded that Obsidian’s disposal operation induced the seismic events, the regulator said, giving the company 15 days to implement its recommended mitigation plan, among other steps.
Obsidian did not immediately respond to Reuters’ requests request for comment on AER’s findings.
Shares of the company were trading down 4% at C$5.74.