Conversion of Salaries/Fees into Share Options

RNS Number : 2579B

Independent Oil & Gas PLC

06 October 2020

 

6 October 2020

Independent Oil and Gas plc

Conversion of Salaries/Fees into Share Options

Independent Oil and Gas plc ("IOG" or "the Company"), (AIM: IOG.L), the development and production company focused on becoming a substantial UK gas producer , announces that certain Directors and other members of the management and technical teams have accepted all or part of their salaries and fees as options over Ordinary Shares in the Company ("Salary/Fee Sacrifice Options") for periods between 1 March 2020 and 31 August 2020.

Salary/Fee Sacrifice Options

As further detailed in the table below, such personnel have accepted 1p Options in lieu of salaries or fees due in the relevant periods. All these Options have a five-year term from the effective date of 6 October 2020 and are issued by reference to the volume weighted average price per Ordinary Share ("VWAP") over the period to which they relate.

The VWAP over the period from 1 March 2020 to 31 August 2020 was 12.72p. Where services have been provided or salary or fees sacrificed for only part of that 6-month period the VWAP has been adjusted accordingly.

The conversion of salaries and fees into Options is consistent with previous salary and fee sacrifice transactions. A total of 757,125 new Options have been issued for this period, with an exercise price of 1p each, representing 0.16% per cent of the Company's current issued share capital.

Options to Incentivise Long Term Performance

Separately, the Company has today also granted options over 52,563 1p Ordinary Shares to new employees to reward long term performance under the Company Share Option Plan ("CSOP Options"). These options all vest three years from the date of grant subject to a compound annual Total Shareholder Return of 10% being achieved. Subject to vesting and such performance conditions being met, they are exercisable for up to ten years from the date of grant and will lapse if not exercised by such date. A total of 52,563 new CSOP Options have been issued, with an exercise price of 1p each, representing 0.01% per cent of the Company's current issued share capital.

Certain information communicated in this announcement was, prior to its publication, inside information for the purposes of Article 7 of Regulation 596/2014.

Enquiries:

Independent Oil and Gas plc Andrew Hockey (CEO) Rupert Newall (CFO) James Chance (Head of Corporate Finance & IR)	[phone]
finnCap Ltd Christopher Raggett (Corporate Finance) Simon Hicks (Corporate Finance)	[phone]
Peel Hunt LLP Richard Crichton David McKeown	[phone]
Vigo Communications Patrick d'Ancona Chris McMahon Simon Woods	[phone]

About IOG:

IOG owns and operates a 50% stake in substantial low risk, high value gas reserves in the UK Southern North Sea. The Company's Core Project targets a gross 2P peak production rate of 140 MMcfe/d (c. 24,000 Boe/d) from gross 2P gas Reserves of 302 Bcfe¹ + 2C gas Contingent Resources of 108 Bcfe², via an efficient hub strategy. In addition to the independently verified 2P reserves at Blythe, Elgood, Southwark, Nailsworth and Elland and 2C Contingent Resources at Goddard, IOG also has independently verified best estimate gross unrisked prospective gas resources of 73 Bcfe² at Goddard. Alongside this IOG has management estimated mid-case recoverable gas volumes of 40 Bcfe and 100 Bcfe at the Harvey and Redwell licences and continues to pursue value accretive acquisitions to generate significant shareholder returns. In September 2020 IOG was also offered four further Southern North Sea blocks adjacent to its existing portfolio which it had applied for in the 32^nd Offshore Licensing Round.

¹ ERC Equipoise Competent Persons Report: October 2017, adjusted by Management to account for updated project timing and compression

² ERC Equipoise Competent Persons Report: October 2018  

Notes:

Salaries and Fees Converted into 1p Options

For the period 1 March 2020 to 31 August 2020 the Salaries/Fees sacrificed by the Company directors named below and other   members of the IOG management and technical teams were converted into 1p options, effective date of grant 6 October 2020, final exercise date of 5 October 2025 at the following VWAP reference prices:

Name	Number of Ordinary Shares under option	VWAP Reference price (pence)	Exercise price (pence)	Salary/Fee Sacrifice Period
Andrew Hockey*	103,248	12.72p	1p	01-Mar-20 - 31-Aug-20
Rupert Newall*	78,218	12.72p	1p	01-Mar-20 - 31-Aug-20
Mark Hughes*	71,961	12.72p	1p	01-Mar-20 - 31-Aug-20
Fiona MacAulay*	34,416	12.72p	1p	01-Mar-20 - 31-Aug-20
Esa Ikaheimonen*	234,627	12.72p	1p	01-Mar-20 - 31-Aug-20
Neil Hawkings*	14,079	12.72p	1p	01-Mar-20 - 31-Aug-20
James Chance	68,832	12.72p	1p	01-Mar-20 - 31-Aug-20
Others	151,743	12.72p	1p	01-Mar-20 - 31-Aug-20
Total	757,125

* Directors

Where services have been provided for only part of a 6-month period the VWAP has been adjusted accordingly as above.

Option Details for any Person Discharging Managerial Responsibilities ("PDMR") / persons closely associated.

1.	Details of the person discharging managerial responsibilities / person closely associated
a)	Name	Andrew Hockey
2.	Reason for the Notification
a)	Position/status	Chief Executive Officer
b)	Initial notification/Amendment	Initial notification
3.	Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor
a)	Name	Independent Oil and Gas plc
b)	LEI	2138005OA2NLZS2NRT74
4.	Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted
a)	Description of the Financial instrument, type of instrument	Share Options over Ordinary Shares
	Identification code	GB00BF49WF64
b)	Nature of the transaction	Grant of Share Options over Ordinary Shares
c)	Price(s) and volume(s)	Price(s) Volume(s) 1p 103,248
d)	Aggregated information: · Aggregated volume · Price	n/a
e)	Date of the transaction	6 October  2020
f)	Place of the transaction	London Stock Exchange, AIM Market (XLON)

1.	Details of the person discharging managerial responsibilities / person closely associated
a)	Name	Rupert Newall
2.	Reason for the Notification
a)	Position/status	Chief Financial Officer
b)	Initial notification/Amendment	Initial notification
3.	Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor
a)	Name	Independent Oil and Gas plc
b)	LEI	2138005OA2NLZS2NRT74
4.	Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted
a)	Description of the Financial instrument, type of instrument	Share Options over Ordinary Shares
	Identification code	GB00BF49WF64
b)	Nature of the transaction	Grant of Share Options over Ordinary Shares
c)	Price(s) and volume(s)	Price(s) Volume(s) 1p 78,218
d)	Aggregated information: · Aggregated volume · Price	n/a
e)	Date of the transaction	6 October 2020
f)	Place of the transaction	London Stock Exchange, AIM Market (XLON)

1.	Details of the person discharging managerial responsibilities / person closely associated
a)	Name	Mark Hughes
2.	Reason for the Notification
a)	Position/status	Chief Operating Officer
b)	Initial notification/Amendment	Initial notification
3.	Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor
a)	Name	Independent Oil and Gas plc
b)	LEI	2138005OA2NLZS2NRT74
4.	Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted
a)	Description of the Financial instrument, type of instrument	Share Options over Ordinary Shares
	Identification code	GB00BF49WF64
b)	Nature of the transaction	Grant of Share Options over Ordinary Shares
c)	Price(s) and volume(s)	Price(s) Volume(s) 1p 71,961
d)	Aggregated information: · Aggregated volume · Price	n/a
e)	Date of the transaction	6 October  2020
f)	Place of the transaction	London Stock Exchange, AIM Market (XLON)

1.	Details of the person discharging managerial responsibilities / person closely associated
a)	Name	Fiona MacAulay
2.	Reason for the Notification
a)	Position/status	Chair
b)	Initial notification/Amendment	Initial notification
3.	Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor
a)	Name	Independent Oil and Gas plc
b)	LEI	2138005OA2NLZS2NRT74
4.	Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted
a)	Description of the Financial instrument, type of instrument	Share Options over Ordinary Shares
	Identification code	GB00BF49WF64
b)	Nature of the transaction	Grant of Share Options over Ordinary Shares
c)	Price(s) and volume(s)	Price(s) Volume(s) 1p 34,416
d)	Aggregated information: · Aggregated volume · Price	n/a
e)	Date of the transaction	6 October 2020
f)	Place of the transaction	London Stock Exchange, AIM Market (XLON)

1.	Details of the person discharging managerial responsibilities / person closely associated
a)	Name	Esa Ikaheimonen
2.	Reason for the Notification
a)	Position/status	Non-Executive Director
b)	Initial notification/Amendment	Initial notification
3.	Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor
a)	Name	Independent Oil and Gas plc
b)	LEI	2138005OA2NLZS2NRT74
4.	Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted
a)	Description of the Financial instrument, type of instrument	Share Options over Ordinary Shares
	Identification code	GB00BF49WF64
b)	Nature of the transaction	Grant of Share Options over Ordinary Shares
c)	Price(s) and volume(s)	Price(s) Volume(s) 1p 234,627
d)	Aggregated information: · Aggregated volume · Price	n/a
e)	Date of the transaction	6 October2020
f)	Place of the transaction	London Stock Exchange, AIM Market (XLON)

1.	Details of the person discharging managerial responsibilities / person closely associated
a)	Name	Neil Hawkings
2.	Reason for the Notification
a)	Position/status	Non-Executive Director
b)	Initial notification/Amendment	Initial notification
3.	Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor
a)	Name	Independent Oil and Gas plc
b)	LEI	2138005OA2NLZS2NRT74
4.	Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted
a)	Description of the Financial instrument, type of instrument	Share Options over Ordinary Shares
	Identification code	GB00BF49WF64
b)	Nature of the transaction	Grant of Share Options over Ordinary Shares
c)	Price(s) and volume(s)	Price(s) Volume(s) 1p 14,079
d)	Aggregated information: · Aggregated volume · Price	n/a
e)	Date of the transaction	6 October 2020
f)	Place of the transaction	London Stock Exchange, AIM Market (XLON)

1.	Details of the person discharging managerial responsibilities / person closely associated
a)	Name	James Chance
2.	Reason for the Notification
a)	Position/status	Head of Corporate Finance
b)	Initial notification/Amendment	Initial notification
3.	Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor
a)	Name	Independent Oil and Gas plc
b)	LEI	2138005OA2NLZS2NRT74
4.	Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted
a)	Description of the Financial instrument, type of instrument	Share Options over Ordinary Shares
	Identification code	GB00BF49WF64
b)	Nature of the transaction	Grant of Share Options over Ordinary Shares
c)	Price(s) and volume(s)	Price(s) Volume(s) 1p 68,832
d)	Aggregated information: · Aggregated volume · Price	n/a
e)	Date of the transaction	6  2020
f)	Place of the transaction	London Stock Exchange, AIM Market (XLON)

Company Share Option Plan Options

Name	Position	Number of New Options Granted	Exercise Price per Ordinary Share (pence)	Vesting Period	Exercise Period	Total Options Held Following This Grant
Various	Employees	52,563	1p	3 years	10 years	n/a

 

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