Eland Oil & Gas PLC Implementation of Long Term Incentive Plan (1942W)

TIDMELA

RNS Number : 1942W

Eland Oil & Gas PLC

10 November 2017

10 November 2017

Eland Oil & Gas PLC

("Eland" or the "Company")

Implementation of Long Term Incentive Plan

Eland Oil & Gas PLC (AIM: ELA), an oil and gas production and development company operating in West Africa with an initial focus on Nigeria announces that, further to the Company's remunerations report within its 2016 Annual Report and Accounts and following an extensive review, a new Long-Term Incentive Plan ("LTIP") has been adopted by the board and approved by the Remuneration Committee and has granted a total of 9,154,00 nil cost options. Conditional upon the award, the recipients have to return 3,069,438 existing share options such that the net grant amounts to 6,084,562 options.

Background and Performance Conditions

The revised LTIP has been established to incentivise Executives to deliver long-term sustainable value for Eland shareholders. The LTIP is also designed to align the interests of management with the interests of shareholders.

The structure of the awards is over a 3-year period, deemed to have commenced in July 2017, and is based upon the following criteria:

-- Price: the base price below which no options will vest under this award is 50p ("Base Price")

-- Total shareholder return: 60% of the award will vest on a straight-line basis depending on the volume weighted average price of an ordinary share as measured with zero vesting at the Base Price and full vesting of this proportion at 200p per share, representing a 300% increase over the Base Price. In order for this proportion of the award to be met in full, the Company will need to have delivered total shareholder return of approximately 60% compound over the 3-year vesting period.

-- Oil price: 15% of the award will vest provided the numerical value of the share price expressed in pence, is greater than the numerical value of the average Brent Crude oil price over the share price Measurement Period (as defined in the share option agreement), expressed in US dollars per barrel

-- Determination of the vesting for the total shareholder return and oil price criteria will be at the end of the 3-year period.

-- Production: 25% of the award will be subject to the Company's gross sales barrels reaching 40,000 barrels of oil per day. The 25% will reduce in a straight line between the maximum vesting at 40,000 barrels of oil per day to nil at 25,000 barrels of oil per day. This proportion will vest on the performance criteria being met when averaged over any 3-month period during the measurement period.

-- The new plan incorporates standard malus and claw back clauses and acceptance of the option requires senior executives to build and retain stock to the value of one times salary and one and a half times salary in the case of the CEO.

The following awards have been made to PDMRs

 
 Director and PDMR            Number of           Number of               Number of   Vesting Date     Total Number of 
                         ordinary share   previous ordinary                ordinary                       Options Held 
                             options of    share options of               shares of 
                           GBP0.10 each    GBP0.10 returned                 GBP0.10 
                      prior to new LTIP                                        each 
                                  award                                  ("Shares") 
                                                                         over which 
                                                                               LTIP 
                                                                             Awards 
                                                                               were 
                                                                           granted. 
-------------------  ------------------  ------------------  ----------------------  -------------  ------------------ 
 George Maxwell 
  (CEO)                       3,324,252           2,123,438               2,800,000   27 July 2020           4,000,814 
-------------------  ------------------  ------------------  ----------------------  -------------  ------------------ 
 Ronald Bain (CFO)                    -                   -               1,200,000   27 July 2020           1,200,000 
-------------------  ------------------  ------------------  ----------------------  -------------  ------------------ 
 

Following this award the company will have 12,292,485 shares under option representing 5.58% of shares in issued.

Chairman Russell Harvey commented.

The new LTIP, which has been adopted by the board, provides both challenging but achievable targets and a substantial prize for both shareholders and employees when they are achieved. It is judged fit for purpose given the company's assets and ambition and the quantum of allocation recognizes both the achievements to date and expectations for the future.

The information set out below is provided in accordance with the requirements of Article 19(3) of the EU Market Abuse Regulation No 596/2014.

Notification and public disclosure of transactions by persons discharging managerial responsibilities and persons closely associated with them.

 
1    Details of the person discharging managerial 
      responsibilities/person closely associated 
---  ---------------------------------------------------------------------- 
a)   Name:                                      George Maxwell 
---  -----------------------------------------  --------------------------- 
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                                       Eland Oil & Gas 
                                                 Plc 
---  -----------------------------------------  --------------------------- 
b)   LEI                                        213800QDGQKG3JKKRR86 
---  -----------------------------------------  --------------------------- 
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,   Ordinary Shares 
      type of instrument                         GBP0.10 each 
      Identification code                        GB00B8HHWX64 
---  -----------------------------------------  --------------------------- 
b)   Nature of the transaction                  Shares Options 
                                                 through Company's 
                                                 Share Incentive 
                                                 Plan 
---  -----------------------------------------  --------------------------- 
c)   Price(s) and volume(s)                      Call Price(s)    Volume(s) 
---  -----------------------------------------  --------------  ----------- 
                                                10p             2,800,000 
 ---------------------------------------------  --------------  ----------- 
d)   Aggregated information                     Date 10/11/2017 
                                                 2,800,000 @ 10pence 
      - Aggregated volume                        Date 31/1/2016 
                                                 500,000 @ 29 
                                                 pence 
      - Price                                    Date 31/8/2012 
                                                 700,814 @ GBP1 
---  -----------------------------------------  --------------------------- 
e)   Date of the transaction                    10 November 2017 
---  -----------------------------------------  --------------------------- 
f)   Place of the transaction                   Outside a trading 
                                                 venue 
---  -----------------------------------------  --------------------------- 
 
 
1    Details of the person discharging managerial 
      responsibilities/person closely associated 
---  ---------------------------------------------------------------------- 
a)   Name:                                      Ronald Bain 
---  -----------------------------------------  --------------------------- 
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                                       Eland Oil & Gas 
                                                 Plc 
---  -----------------------------------------  --------------------------- 
b)   LEI                                        213800QDGQKG3JKKRR86 
---  -----------------------------------------  --------------------------- 
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,   Ordinary Shares 
      type of instrument                         GBP0.10 each 
      Identification code                        GB00B8HHWX64 
---  -----------------------------------------  --------------------------- 
b)   Nature of the transaction                  Shares Options 
                                                 through Company's 
                                                 Share Incentive 
                                                 Plan 
---  -----------------------------------------  --------------------------- 
c)   Price(s) and volume(s)                      Call Price(s)    Volume(s) 
---  -----------------------------------------  --------------  ----------- 
                                                10p             1,200,000 
 ---------------------------------------------  --------------  ----------- 
d)   Aggregated information                     Date 10/11/2017 
                                                 1,200,000 @ 10pence 
  - Aggregated volume 
 
  - Price 
 ---------------------------------------------  --------------------------- 
e)   Date of the transaction                    10 November 2017 
---  -----------------------------------------  --------------------------- 
f)   Place of the transaction                   Outside a trading 
                                                 venue 
---  -----------------------------------------  --------------------------- 
 

END

For further information:

Eland Oil & Gas PLC ([phone])

www.elandoilandgas.com

George Maxwell, CEO

Finlay Thomson, IR

Canaccord Genuity Limited ([phone])

Henry Fitzgerald O'Connor / James Asensio

Panmure Gordon (UK) Limited ([phone])

Adam James / Atholl Tweedie

Tom Salvesen

Camarco ([phone])

Billy Clegg / Georgia Edmonds / Tom Huddart

This information is provided by RNS

The company news service from the London Stock Exchange

END

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November 10, 2017 07:14 ET (12:14 GMT)