20 Oct 2008 15:12
Falkland Oil & Gas Limited
("FOGL" or "the Company")
Option Award
Long Term Incentive Plan
Under the terms of the FOGL LTIP, the Company announces that on 20 October 2008, Tim Bushell, Chief Executive, was granted an option (the "Option") over 256,534 Ordinary Shares of 0.002p each in the Company at an exercise price of 0.002p per Ordinary Share.
Subject to the terms of the LTIP, the option will be deemed to be exercised on 20 October 2011, 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 13 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 10 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 20 October 2011 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 17 October, 2008 of 79.2p.
Interest in shares
Prior to the above grant Mr Bushell owns 60,000 Ordinary shares in the Company. Under the Company's Unapproved Share Option Scheme he has options over 457,627 shares exercisable at 118p, over 194,595 shares exercisable at 92.5p and over 43,028 shares exercisable at 125.5p; these awards are subject to the satisfaction of performance conditions. He also has options over a total of 321,789 shares as a result of previous awards under the LTIP which are exercisable at 0.0002p 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