Tórshavn, Faroe Islands, 2014-08-29 18:20 CEST (GLOBE NEWSWIRE) -- Atlantic Petroleum (NASDAQ OMX: ATLA DKK & Oslo Stock Exchange: ATLA NOK) 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 on 1 April 2017 subject to continued employment and meeting stretching corporate performance conditions. Given the delay in granting the 2014 LTIP awards, the vesting date has been set at 1 April 2017 such that the awards vest in line with the normal LTIP cycle. The performance period over which performance is determined will begin on 1 April 2014 such that the vesting of awards will be tested over a three year period.
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 base price for the share price multiplier will be 125 DKK per share, broadly in line with the share price as at the initial public offering on the Oslo Bors on 10 December 2013.
The options granted to the participants are as follows:
| Name | Number of Plan Shares |
| Ben Arabo | 8,576 |
| Key Employees & Management | 15,165 |
For the CEO, Ben Arabo, the options granted are equal to 67% of the annual base salary.
The option was calculated by reference to a price of 125 DKK per share.
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. Where the Company’s absolute share price growth is between 15% p.a and 45% p.a over the performance period, the participants would be entitles to exercise their option in respect of a multiplier which is calculated on a straight line basis between 15% p.a. (1x multiplier) and 45% p.a (3x multipler).
Atlantic Petroleum in brief:
Atlantic Petroleum is a full cycle exploration and production (E&P) Group focused on North West Europe. Atlantic Petroleum currently holds 45 oil and gas licences in the UK, Norway, Faroe Islands, Ireland and the Netherlands, and has three fields in production in the UK part of the North Sea. In addition to this, the Group has one field under development with first oil expected in 2016, two additional potential development projects and a substantial number of exploration prospects. Atlantic Petroleum participates in joint ventures with 30 reputable, international partners. Atlantic Petroleum’s main office is located in Tórshavn, Faroe Islands, and the Company has subsidiaries and technical offices in London, UK and Bergen, Norway. Atlantic Petroleum’s existing shares are listed on NASDAQ OMX Copenhagen and on Oslo Stock Exchange.
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.37/2014
Issued 29-08-2014