The Alberta Energy Regulator issued a formal notice of investigation to Trilogy Energy Corp. on Oct. 25 after a company pipeline spilled about 1,600 barrels of mixed oil and water in central Alberta.

Calgary-based Trilogy reported the oil emulsion leak on Oct. 7, and said it was discovered within its Kaybob Montney development about 15 kilometers (nine miles) northeast of the town of Fox Creek.

In a statement, the regulatory agency said its investigation will confirm the volume of the spill and consider potential enforcement actions against Trilogy.

The regulator had already issued an environmental protection order forcing the company to suspend operations and contain the leak.

Trilogy shares were down 5.9% by midafternoon Oct. 25 on the Toronto Stock Exchange at CA$7.53.