SeaWorld Entertainment Inc. said it is considering its options after a California regulator placed significant conditions on the approval of the theme-park operator's Blue World project.

In morning trading, shares in SeaWorld fell 5.2%.

Conditions the California Coastal Commission has laid out include prohibiting breeding or transporting the whales at the facility. A SeaWorld spokeswoman didn't elaborate about the options the company was considering.

"We are disappointed with the conditions" the commission has "placed on their approval," said SeaWorld Chief Executive Joel Manby, who said depriving the killer whales of the "right to reproduce is inhumane."

SeaWorld's Blue World project involves the creation of a killer whale environment with water volume of 10 million gallons, double the size of its existing facility. The San Diego company first announced the project last August.

Embroiled in controversy about its training and public presentation of killer whales, which has intensified after the release of the documentary "Blackfish," SeaWorld has worked to counter what it calls "misinformation" and highlight the its commitment to killer whale care and research.

Meantime, the company's financial results have suffered and the stock has halved since the film's release.

Write to Lisa Beilfuss at lisa.beilfuss@wsj.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

(END) Dow Jones Newswires

October 09, 2015 11:15 ET (15:15 GMT)

Copyright (c) 2015 Dow Jones & Company, Inc.
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