(Bloomberg) ? Bermuda-registered Nelson Resources Ltd., an oil producer being acquired by OAO Lukoil for as much as $2 billion, is under investigation by Ontario regulators for trades that occurred before the takeover announcement, Nelson Resources said.

The company said the investigation by the Ontario Securities Commission was prompted by the September 30 announcement of the Lukoil transaction. ?We have presented information to the OSC on this matter,? Nick Zana, Nelson?s chief executive, said in a statement distributed by Canada NewsWire. The company ?will continue to fully cooperate with the OSC in its investigation.?

Some Nelson Resources directors and executives sold stock at a profit before the announcement after exercising options to buy shares, according to insider reports filed with the System for Electronic Disclosure by Insiders in Ontario. Zana used his options September 2 to buy one million shares at 67 cents. He sold the stock the same day for C$2.85. On September 6, Zana exercised 110,000 options at 67 cents and sold for C$2.80. The next day he exercised 24,600 options at 67 cents and sold for C$2.80. And on September 15, Zana used his options to buy 925,400 shares at 67 cents and sold them for C$2.82.

As a result of the transactions, Zana made a profit of C$4.46 million ($3.81 million).

The rest of the sales by insiders occurred on September 15, according to the disclosure filings.