IOG.L Regulatory News (IOG)

14 May 2021

IOG plc

Grant of Share Options to Incentivise Long-Term Performance

IOG plc ("IOG" or "the Company"), (AIM: IOG.L), the UK gas company targeting growth and high returns via an infrastructure-led hub strategy, announces that, under its Company Share Option Plan, it has today granted options over, in aggregate, 759,980 1p Ordinary Shares in the Company ("Ordinary Shares") to certain senior management and employees appointed during 2021 (the "LTIP Options").

The new LTIP Options are to incentivise long-term performance that delivers value for all shareholders and are set out in the tables below. Vesting is subject to the same basket of performance conditions as specified for previously announced 2021 LTIP options, namely:

- 40% will vest upon achievement of a compound annual Total Shareholder Return ("TSR") of 12.5% over a three-year period

- Up to 20% will vest upon achievement of upper quartile TSR relative to a basket of peer companies over a three-year period from date of grant subject to a floor based on the price at award

- The remaining 40% will vest upon successful delivery of a series of project and company specific commercial milestones, including:

o Production targets (including a first gas target)

o Field Development Plan ("FDP") approval for a further phase of development

o Establishment of an independent baseline carbon intensity assessment for the Phase 1 development in 2021 and meeting a meaningful carbon intensity target level in future years  

Subject to vesting, the new LTIP Options are exercisable for up to ten years from the date of grant and will lapse if not exercised by such date.

The aggregate total of 759,980 new LTIP Options represents 0.16% of the total issued Ordinary Shares and 0.13% on a fully diluted basis.

Fiona MacAulay, Chair of IOG, commented:

"This award under the Company's Share Option Plan is designed to ensure that, as for existing employees, more recent joiners are also appropriately aligned and incentivised to work effectively to deliver shareholder value. As such, the performance conditions include meeting the same valuation, operational and ESG objectives as for previously announced 2021 long-term incentive options."

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the company's obligations under Article 17 of MAR.

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Person Discharging Managerial Responsibilities ("PDMR") Notification Forms