Tórshavn, Faroe Islands, 2012-03-24 20:59 CET (GLOBE NEWSWIRE) -- P/F Atlantic Petroleum (OMX: FO-ATLA) today announces the grant of nil-cost options over ordinary shares in the Company under the Atlantic Petroleum Long Term Incentive Plan which was adopted by the Company on 24 March 2012 (the “Plan”).
The options are capable of vesting after a three year period subject to continued employment and meeting stretching corporate performance conditions.
The Long-Term incentive awards form part of the Company’s remuneration strategy to provide a competitive remuneration package that rewards Directors and employees fairly and responsibly for their contributions and aims to deliver superior remuneration for superior performance.
We set out the two corporate performance conditions below:
Comparative Total Shareholder Return (“TSR”):
The Company’s comparative TSR is compared to a comparator group of quoted oil and gas exploration and production companies and:
- 25% of the option will vest for median performance against the comparator group;
- 100% of the option will vest for upper quartile performance against the comparator group; and
- The option will vest on a straight-line basis for TSR performance between these levels.
Share price multiplier:
The vesting level achieved under the comparative TSR element can be multiplied upwards if the Company achieves absolute share price growth of more than 15% p.a. over the three year performance period. A maximum multiplier of three times can be achieved for 45% p.a. absolute share price growth and awards vest on a straight-line basis between these share price performance levels.
The options granted to the participants are as follows:
Name Number of Plan Shares
Ben Arabo, CEO 8,849
Members of Employees & Management 13,503
For the CEO, Ben Arabo, the options granted are equal to 100% of the annual base salary.
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The option was calculated by reference to a price of 169.5 DKK per share, being the closing price of the Company’s shares on 23 March 2012 on Nasdaq OMX Copenhagen. The number of shares shown above represents the figure that may be acquired by the participants, if the Company’s TSR is in the upper quartile TSR of its comparator group. Where the Company’s absolute share price growth is 45% p.a. or more over the performance period, the participants would be entitled to exercise their option in respect of three times as many shares as stated above. |
Further Details:
Further details can be obtained from Ben Arabo, CEO, tel +298 350100 (ben.arabo@petroleum.fo). This announcement will be available, together with other information about Atlantic Petroleum, on the Company's website: www.petroleum.fo.
On the website, it is also possible to sign up for the Company’s e-mail newsletter.
Announcement no. 10/2012
Issued 24-03-2012