19 Oct 2009 14:44
Falkland Oil and Gas Limited
Grant of Options
Unapproved Option Scheme and Long Term Incentive Plan
Falkland Oil and Gas Limited ('the Company') announces that on 19 October 2009 Colin More, Exploration Director, was granted an option over 119,835 Ordinary Shares of 0.002p each in the Company ('Ordinary Shares') at an exercise price of 121p per Ordinary Share.
The option may be exercised between 19.October 2012 and 19 October 2016 subject to the satisfaction of performance criteria relating to the compound annual increase in the Company's Ordinary Share price over the period 19 October 2009 to 19 October .2012 ('the Performance Period').
The option shall not be deemed to be exercised at all unless the price of an Ordinary Share increases by more than 10 per cent compound per annum during the Performance Period. If the price of an Ordinary Share increases by 10 per cent compound per annum during the Performance Period the option maybe exercised as to 25 per cent of the shares under option and if the price increases by 20 percent compound per annum during the Performance Period the option may be exercised in full. The option shall be deemed to be exercisable over a reduced number of Ordinary Shares for increases between 10 per cent and 20 per cent calculated on a straight line basis.
Long Term Incentive Plan
The Company also announces that on 19 October 2009, Tim Bushell, Chief Executive, was granted an option (the "Option") over 171,746 Ordinary Shares at an exercise price of 0.002p per Ordinary Share and Colin More, Exploration Director, was granted an option over 122,570 Ordinary Shares exercisable at par ( 0.002p per Ordinary Share ), in both cases under the terms of the FOGL LTIP,
Under the terms of the LTIP, the option will be deemed to be exercised on 19 October 2012, being the third anniversary of the date of grant of the Option.
Exercise of the Option is, however, contingent upon two performance conditions being satisfied over the three year period following the date of grant of the option (the "LTIP Period"), being:
1) The achievement of a specified performance target related to the market price of an Ordinary Share; and
2) The relative performance of the market price of an Ordinary Share as compared against the share price performance of a group of 12 comparator companies chosen by the Remuneration committee (the "Comparator Companies").
The Option shall not be deemed to be exercised at all unless:
1) The market price of an Ordinary Share increases by at least 20% per annum over the LTIP Period; and
2) The increase in the market price of an Ordinary Share over the LTIP Period is not less than the share price increase achieved by the 6th ranked company of the Comparator Companies.
The Option shall not be deemed to be exercised in full unless:
1) The market price of an Ordinary Share increases by at least 50% per annum over the LTIP Period; and
2) The increase in the market price of an Ordinary Share over the LTIP Period is more than the share price increase achieved by at least 9 of the Comparator Companies.
The Option shall be deemed to be exercised over a reduced number of Ordinary Shares for performance between these levels (on a straight line basis) and the option shall lapse on 19 October 2012 to the extent that the performance conditions are not met. The baseline for measurement of the relevant performance targets is the average closing price of the Ordinary shares of the Company for the 15 days ending 16 October, 2009 of 118.3p.
Interest in shares
Prior to the above grant Mr Bushell owned 85,000 Ordinary Shares in the Company. Under the Company's Unapproved Share Option Scheme he has options over 457,627 Ordinary Shares exercisable at 118p, over 194,595 Ordinary Shares exercisable at 92.5p and over 43,028 Ordinary Shares exercisable at 125.5p; these awards are subject to the satisfaction of performance conditions. He also has options over a total of 578,323 Ordinary Shares as a result of previous awards under the LTIP which are exercisable at par of 0.002p per share subject to the satisfaction of performance criteria.
Prior to the above grant Mr More owned 25,000 Ordinary Shares in the Company and had options under the Company's Unapproved Option Scheme over 245,907 Ordinary Shares of which 195,555 are exercisable at 112.5p and 50,352 of which are exercisable at 142p subject to the satisfaction of performance criteria. He also has options under the Company's Long Term Incentive Plan over a total of 272,603 Ordinary Shares which are exercisable at par of 0.002p per share subject to the satisfaction of performance criteria.
Enquiries
FOGL
Richard Liddell, Chairman 020 7563 1260
David Hudd, Deputy Chairman 020 7563 1260
Financial Dynamics
Ben Brewerton 020 7831 3113
Oriel Securities (Broker and NOMAD)
Richard Crawley/David Arch 020 7710 7600