Independent Oil and Gas plc (“IOG” or “the Company”), (AIM: IOG.L), the UK gas company targeting high returns via an infrastructure-led hub strategy, announces that certain Directors and other members of the management and technical teams have sacrificed all or part of their cash salaries or fees into options over Ordinary Shares in the Company (“Options”) for periods between 1 September 2020 and 28 February 2021.
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 24 March 2021 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 full period from 1 September 2020 to 28 February 2021 was 14.40p.
The conversion of cash salaries and fees into Options is consistent with previous salary and fee sacrifice transactions, creating additional alignment between management, directors and shareholders, and is expected to continue while the Company is in a pre-cashflow phase. A total of 972,685 new Options have been issued for this period, with an exercise price of 1p each, representing 0.20% per cent of the Company’s current issued share capital.
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the company’s obligations under Article 17 of MAR.
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 and management estimated 2C gas Contingent Resources of 132 Bcfe, via an efficient hub strategy based on co-owned infrastructure. In addition to its 2P reserves at Blythe, Elgood, Southwark, Nailsworth and Elland and 2C contingent resources at Goddard, it has management estimated gross 2C contingent resources of 23 Bcfe at Abbeydale and unrisked mid-case prospective resources of 66 Bcfe at Thornbridge, 31 Bcfe at Southsea, 31 Bcfe at Kelham, 27 Bcfe and 16 Bcfe in the two Goddard flank structures, and 21 Bcfe at Harvey. In December 2020 IOG also accepted a 50% operated stake in Licence P2589, containing the Panther and Grafton gas discoveries with management estimated gross mid-case contingent resources of 46 Bcfe and 35 Bcfe respectively. In addition IOG continues to pursue value accretive acquisitions to help generate significant shareholder returns.
Full update link http://www.share-talk.co.uk/announcements/rns/independent-oil-gas-plc/conversion-of-salaries-fees-into-share-options/202103251225015217T
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