FOGL.L Regulatory News (FOGL)

27 Dec 2006 12:10

Falkland Oil and Gas Limited27 December 2006 Falkland Oil and Gas Limited Grant Of Options Unapproved Option Scheme Falkland Oil and Gas Limited ("the Company") announces that on 27 December 2006,Tim Bushell, Chief Executive, was granted an option over 194,595 ordinary sharesof 0.002p each in the Company ("Ordinary Shares" ) at an exercise price of92.5pence per Ordinary Share. The option may be exercised between 27 December 2009 and 26 December 2013subject to the satisfaction of performance criteria relating to the compoundannual increase in the Company's share price over the period 27 December 2006 to26 December 2009 ("the Performance Period"). The option shall not be deemed to be exercised at all unless the price of anOrdinary Share increases by more than 10 per cent compound during theperformance period. If the price of an Ordinary Share increases by 10per centcompound per annum during the Performance Period the option may be exercised asto 25per cent of the shares under option and if the price increases by 50 percent compound per annum during the Performance Period the option may beexercised in full. The option shall be deemed to be exercisable over a reducednumber of Ordinary Shares for increases between 10per cent and 50per centcalculated on a straight line basis. Long Term Incentive plan The Company also announces the introduction of a Falkland Oil and Gas Long TermIncentive Plan (the "LTIP"). The remuneration committee of the board ofdirectors of the Company (the "Remuneration Committee") has taken this step tofurther synchronise the long term aspirations of the Company, ExecutiveManagement and shareholders. The LTIP is an unapproved employee share option plan under which options overOrdinary Shares may be granted to any employee or director of the Company or itssubsidiaries (the "Group") and any consultant to the Group. The exercise priceper Ordinary Share of options granted under the LTIP shall, unless otherwisedetermined by the Remuneration Committee be the nominal value of an OrdinaryShare. Under the terms of the LTIP, the Company announces that, on 27 December 2006,Tim Bushell, Chief Executive, was granted an option (the "Option") over 194,595Ordinary Shares of 0.002p each in the Company at an exercise price of 0.002pper Ordinary Share. Subject to the terms of the LTIP, the Option will be deemed to be exercised on27 December 2009, being the third anniversary of the date of grant of theOption. Exercise of the Option is, however, contingent upon two performance conditionsbeing satisfied over the three year period following the date of grant of theOption (the "LTIP Performance Period"), being: i. The achievement of a specified performance target related to the market prices of an Ordinary Share; and ii. The relative performance of the market price of an Ordinary Share as compared against the share price performance of a group of 18 comparator companies chosen by the Remuneration Committee (the "Comparator Companies"). The Option shall not be deemed to be exercised at all unless: i. The market price of an Ordinary Share increases by at least 20% per annum over the LTIP Performance Period; and ii. The increase in the market price of an Ordinary Share over the LTIP Performance Period is not less than the share price increase achieved by the 9th ranked company in the Comparator Companies. The option shall not be deemed to be exercised in full unless: i. The market price of an Ordinary Share increases by at least 50% per annum over the LTIP Performance Period; and ii. The increase in the market price of an ordinary Share over the LTIP Performance Period is more than the share price increase achieved by at least 17 of the Comparator Companies. The Option shall be deemed to be exercised over a reduced number of OrdinaryShares for performance between these levels (on a straight line basis) and theOption shall lapse on 27 December 2009 to the extent that the performanceconditions are not met. Interest in shares Prior to the above grants Mr Bushell owns 60,000 Ordinary Shares in the Companyand has options over 457,627 Ordinary Shares granted under the Company'sUnapproved Share Option Scheme exercisable at 118p subject to the satisfactionof performance criteria. Enquiries: FOGL Richard Liddell, Chairman 020 7563 1260 David Hudd, Deputy Chairman 020 7563 1260 College Hill Nick Elwes / Paddy Blewer 020 7457 2020 KBC Peel Hunt Jonathan Marren 020 7418 8900 This information is provided by RNS The company news service from the London Stock Exchange