Cobalt International Energy disclosed in a Form 10-Q filing with the Securities and Exchange Commission this week that it has received a Wells Notice for potential violations of federal securities laws related to its operations in Angola.

On Aug. 4, Cobalt said the SEC made a preliminary determination to recommend an enforcement action against the company, following a formal investigation the SEC launched in 2011. “In connection with the contemplated action, the staff may recommend that the SEC seek remedies that could include an injunction, a cease-and-desist order, disgorgement, pre-judgment interest and civil money penalties,” the company stated.

The Wells Notice, which is neither a formal allegation nor a finding of wrongdoing, allows Cobalt the opportunity to provide its reasons for why the proposed enforcement action should not be filed, and to address the issues raised by the SEC before a decision is made on whether to bring an enforcement proceeding.

Cobalt said it intends to respond to the Wells Notice “in due course” and continues to fully cooperate with the SEC. “The company has conducted an investigation into these allegations, and the receipt of the Wells Notice does not change the company’s belief that its activities in Angola have complied with all laws, including the Foreign Corrupt Practices Act.”

Cobalt said it’s unable to predict the outcome of the SEC's investigation, or any action the SEC may decide to pursue.