L-T Incentive Plan Award

5 Oct 2005 13:12

Faroe Petroleum PLC05 October 2005 5th October 2005 Faroe Petroleum plc (the "Company") LTIP award On 4 October 2005, in accordance with the Faroe Petroleum Long Term IncentivePlan ("LTIP"), the Company's Remuneration Committee (which is comprised whollyof non-executive directors) made an LTIP award as an option to acquire 247,386ordinary shares of 10p each in the share capital of the Company, to the ChiefExecutive Mr G. D. Stewart (the "Award"). The Award is calculated as 200% of Mr Stewart's basic annual salary at theclosing mid-market price for the Company's ordinary shares on 3 October 2005 of£1.435 / share. The exercise price of each option under the Award is the nominalvalue of 10p pence per ordinary share. No consideration was paid for the grantof the Award. The vesting of this award will be determined by reference to the Company's totalshareholder return compared to two comparator groups of oil and gas companiesover a three year period. In both cases, 30% of the relevant part of the Awardwill vest for median performance, with full vesting for upper quartileperformance. The vesting of this Award will be subject to the Company'sunderlying financial performance also being satisfactory over the relevantperiod. There will be no retesting of the performance conditions. The vesting of the Award is subject to approval by shareholders at the nextgeneral meeting where full details of the LTIP will be made available toshareholders. In addition to the Award Mr Stewart holds 1,770,753 options over ordinary sharesof the Company, exercisable at various prices up to 124 pence. Ends Enquiries: Faroe Petroleum plc Julian Riddick, Tel: 01224 652 813 Company Secretary jriddick@faroe-petroleum.com This information is provided by RNS The company news service from the London Stock Exchange