Option Award

5 Oct 2007 11:41

Falkland Oil and Gas Limited05 October 2007 Falkland Oil and Gas Limited Option Award Long Term Incentive Plan Under the terms of the FOGL LTIP , the Company announces that, on 5 October2007, Tim Bushell, Chief Executive, was granted an option (the "Option") over127,194 Ordinary Shares of 0.002p each in the Company at an exercise price of0.002p per Ordinary Share. Subject to the terms of the LTIP, the Option will be deemed to be exercised on 5October 2010, being the third anniversary of the date of grant of the Option. Exercise of the Option is, however, contingent upon two performance conditionsbeing satisfied over the three year period following the date of grant of theOption (the "LTIP Performance Period"), being: i. The achievement of a specified performance target related to the market prices of an Ordinary Share; and ii. The relative performance of the market price of an Ordinary Share as compared against the share price performance of a group of 18 comparator companies chosen by the Remuneration Committee (the "Comparator Companies"). The Option shall not be deemed to be exercised at all unless: i. The market price of an Ordinary Share increases by at least 20% per annum over the LTIP Performance Period; and ii. The increase in the market price of an Ordinary Share over the LTIP Performance Period is not less than the share price increase achieved by the 9th ranked company in the Comparator Companies. The option shall not be deemed to be exercised in full unless: i. The market price of an Ordinary Share increases by at least 50% per annum over the LTIP Performance Period; and ii. The increase in the market price of an ordinary Share over the LTIP Performance Period is more than the share price increase achieved by at least 17 of the Comparator Companies. The Option shall be deemed to be exercised over a reduced number of OrdinaryShares for performance between these levels (on a straight line basis) and theOption shall lapse on 5 October 2010 to the extent that the performanceconditions are not met. 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 457,627shares exercisable at 118p and over 194,595 shares exercisable at 92.5p subjectto the satisfaction of performance criteria. He also has options over 194,595shares under the LTIP which are exercisable at 0.002p subject to thesatisfaction of performance criteria. 5th October 2007 Enquiries: FOGL Richard Liddell, Chairman 020 7563 1260 David Hudd, Deputy Chairman 020 7563 1260 College Hill Nick Elwes / Paddy Blewer 020 7457 2020 KBC Peel Hunt Jonathan Marren 020 7418 8900 This information is provided by RNS The company news service from the London Stock Exchange