Faroe Petroleum Plc Regulatory News (FPM)

18 June 2014

Faroe Petroleum plc

("Faroe Petroleum" or the "Company")

Notification of Directors' interests

Faroe Petroleum Incentive Plan

On 17 June 2014, the Remuneration Committee of the Company approved an annual award under the Faroe Petroleum Incentive Plan ('FPIP") to the Executive Directors by way of grant of nil-cost options ("Options") over ordinary shares of 10p each in the Company ("Ordinary Shares") as detailed below:

FPIP Annual Awards

The actual number of Options which the recipients could receive under the FPIP ranges from zero to 150%subject to the achievement of the performance targets. For the purposes of disclosure and maintenance of certain statutory records, the number of Nil-Cost Options is taken to be 100% of the number of Nil-Cost Options awarded, as detailed above.

Performance will be measured at the end of a three year performance period against three equally weighted performance conditions, namely 1/3rd absolute Total Shareholder Return ("TSR"), 1/3rd relative TSR and 1/3rd a measurement of (in per share terms) reserves replacement and resources growth targets. Awards granted to the recipients will be required to be held for an additional two year holding period after the three year performance period before they vest.

Co-Investment Plan

On 13 June 2014, the Executive Directors acquired Ordinary Shares which are being treated as 'Investment Shares' under the Faroe Petroleum plc Co-Investment Plan (the "CIP"). On 17 June 2014, the Remuneration Committee made the following conditional Matching Share awards under the CIP at a price per share of £1.275, being the closing mid-market price on 16 June 2014:

The CIP provides for the Remuneration Committee to allocate up to three Matching Shares, subject to certain performance targets, for every Investment Share that would have been purchased if the gross pre-tax salary had been invested in Ordinary Shares.

The release of the Matching Share awards is subject to performance targets and the continued employment and retention by the participant of the Investment Shares for three years from the date of grant. 

Total Holdings

Following these transactions the Executive Directors hold the following Ordinary Shares together with options over the same (including Matching Shares) exercisable at various prices up to 186.25 pence, as follows:

Graham Stewart also holds an option to acquire 84,547 Ordinary Shares under a Long Term Incentive Plan exercisable at the nominal price of 10 pence per Ordinary Share.

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