FOGL.L Regulatory News (FOGL)

Wednesday 2 January 2013

Falkland Oil and Gas Limited

("FOGL" or "the Company")

FOGL LONG TERM INCENTIVE PLAN AND SHARE OPTION SCHEME AWARDS

FOGL, the oil & gas exploration company focused on its extensive licence areas to the South and East of the Falkland Islands, announces the following arrangements in respect of awards to be made under its Long Term Incentive Plan for directors:-

THE FOGL LONG TERM INCENTIVE PLAN (LTIP):

The grants awarded under the FOGL LTIP have a three-year performance period and a ten-year term. Each year, at the discretion of the Remuneration Committee a new grant is awarded, and for 2012 new grants have been approved for executive directors as follows:

The Size of Grant: Grants are awarded under the LTIP as a combination of restricted shares (par value options) up to a maximum of 50% of annual salary, and options with a market value exercise price, up to a maximum of 100% of annual salary.

Restricted Share Vesting: Restricted shares will vest on the achievement of strategic objectives and operating milestones over a three-year performance period. Continued employment with FOGL is required for vesting.

Market Value Option Vesting: Options will vest according to absolute share price growth calculated over three years. Growth under 33% will not be rewarded. The total award will be calculated by reference to the total number of days on which this target 33% share price growth is exceeded during the three-year period, with a maximum award possible where the average growth reaches 73%. Continued employment with FOGL is required for vesting.

Exercise Period: Grants vested under either or both plans may be exercised up to ten years from the date of award.

Exercise Price: The exercise price for the market value options for the 2012 award is 28p, being the share price as at close on 28th December 2012.

Awards: In accordance with the scheme rules, grants have been awarded to Tim Bushell and Colin More on 31st December 2012, as follows:-

Tim Bushell - 371,429 restricted shares have been awarded, calculated as 50% annual salary divided by the Company's share price as at close on 28th December 2012.

742,857 market value options have been awarded, calculated as 100% annual salary divided by the Exercise Price of 28p.

Colin More - 334,286 restricted shares have been awarded, calculated as 50% annual salary divided by the Company's share price as at close on 28th December 2012.

668,571 market value options have been awarded, calculated as 100% annual salary divided by the Exercise Price of 28p.

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