Calgary based Obsidian Energy is to settle a $8.5 million lawsuit with the US Securities and Exchange Commission (SEC).
The settlement is in relation to the company’s 2014 restatement of certain financial results while it was known as Penn West Petroleum Ltd.
Under the terms of the settlement, the firm, without admitting or denying any of the factual allegations in the SEC’s Complaint, agreed to pay a penalty of $8.5 million.
In addition, Obsidian will be enjoined from future violations of certain provisions of US securities legislation.
The lawsuit would continue against the former Penn West employees named in the SEC Complaint, the company said in a statement.
The settlement is subject to court approval.
David French, Obsidian Energy’s president and chief executive said: @Our settlement resolves this legacy Penn West issue, and we are focused on looking forward as a new company.
“We appreciate the open dialogue with the SEC Staff, which led to this conclusion.”