Share Based Payments

A new share based policy was adopted by the Company on 24th March 2012. Nil-cost options over ordinary shares in the Company were granted to members of management and senior staff under the Atlantic Petroleum Long Term Incentive Plan (LTIP).

The options are capable of vesting after a three year period subject to continued employment and meeting stretching corporate performance conditions.

The LTIP 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, whilst maintaining alignment with shareholder’s interests.

In addition, the Remuneration Committee may introduce an all employee share plan in which all employees of the Company can participate in order to:

• encourage a focus on longer-term performance and alignment of interests with shareholders;
• encourage individual share ownership for all employees; and
• allow the cost-effective delivery of annual bonuses.