Obsidian shares fall after Alberta body says co caused seismic events

Obsidian Energy

24/03/2023 10:56

March 24 (Reuters) - Shares of Obsidian Energy Ltd
 OBE.TO  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.

 (Reporting by Arunima Kumar and Sourasis Bose in Bengaluru;
Editing by Nivedita Bhattacharjee)
 ((Arunima.Kumar@thomsonreuters.com; Twitter: https://twitter.com/Aru_Kumar94
 ;))