Update on Executive Management Fees
13 September 2019
COLUMBUS ENERGY RESOURCES PLC
("Columbus" or the "Company")
Update on Executive Management Fees
Columbus, the oil and gas producer and explorer focused on onshore Trinidad with the ambition to grow in South America, provides the following update about its Executive Management fee arrangements.
Update on Executive Management Fee arrangements
As previously announced, the Company's Executive Management have, for the past two years, received 50% of their fees in Company shares (the "Executive Salary Scheme").
The Executive Salary Scheme has assisted the Company in both managing its cash and also ensuring Executive Executive Management interests are aligned with the Company's shareholders. To date, no shares related to the Executive Salary Scheme have been sold by any of the Executive Management.
The Company hereby announces that it intends to amend the application of the Executive Salary Scheme so that by 31 October 2019, the Company will be paying 100% of their fees in cash. This shall apply to all Executive Management save one. The final Executive Management member will receive 100% of his fees in cash from 1 January 2020.
Notwithstanding this change, the Executive Management intend to continue to invest in the Company through purchasing shares in the secondary market (subject to the relevant regulatory requirements). Any such purchases will be announced via RNS.
Michael Douglas, Senior Non-Executive Director and Chairman of Remuneration Committee, commented:
"The Executive Salary Scheme has, over the past two years, helped the Company preserve its cash and align the Executive Management with shareholders. As we head into the third year, it's appropriate for the Executive Management to return to receiving 100% of their fees in cash. This will have the benefit to shareholders of limiting the total number of shares in issuance. The Executive Management intends to continue to invest in the Company using all or part of the salary currently allocated for the Executive Salary Scheme, through the purchase of shares in the secondary market, which obviously benefits all shareholders."
As detailed in the Company's Interim Results on 4 September 2019 and as previously announced, the Executive Directors being Leo Koot and Gordon Stein, and the Executive Management members being Stewart Ahmed and Tony Hawkins (together the "Executive Management"), currently receive 50% of their fees in Company shares, implemented by way of nil cost options (the "Remuneration Shares"). Whilst this was initially designed for their first year of employment, the Executive Management agreed to continue to take 50% of their fees in their second year of employment with the number of Remuneration Shares being calculated and accrued monthly. Alternatively, each member of the Leadership Team is entitled to receive 100% of their fees in cash by giving the Company one month's notice of this request in writing, although no such notices have been received to date. As of 1 January 2019, the Executive Management also included Geoffrey Leid who also agreed to receive 50% of his fees for his first year of his employment in Remuneration Shares.
The Remuneration Shares take the form of nil cost share options, which provided the Company with more flexibility but does not change the number of shares to be issued in any way or provide any additional value to the Executive Management members.
The Company will have the flexibility to settle the Executive Salary Scheme in cash, rather than shares or options, should it be beneficial for the Company to do so.
As at 30 June 2019, the fees to be settled by the issue of Remuneration Shares would equate to 29,509,299 shares (equal to approximately 3.55% of the Company's issued share capital).
Columbus Energy Resources plc
Michael Douglas / Leo Koot / Gordon Stein
+44 (0)20 7203 2039
VSA Capital Limited
Financial Adviser and Broker
Andrew Monk / Andrew Raca
+44 (0)20 3005 5000
Beaumont Cornish Limited
Roland Cornish / Rosalind Hill Abrahams
+44 (0)20 7628 3396
Public and Investor Relations
Mark Antelme / Jimmy Lea
+44 (0) 20 8434 2643
This announcement is inside information for the purposes of Article 7 of Regulation 596/2014.
Notes to Editors:
Columbus Energy Resources Plc is an oil and gas producer and explorer focused on onshore Trinidad with the ambition to grow in South America. The Columbus Energy group has five producing fields, one development project and a highly prospective exploration portfolio in the South West Peninsula ("SWP"), which lies in the extreme southwest of Trinidad and consists of stacked shallow and deep prospects. Columbus is cashflow positive and aims to create transformational growth by developing its portfolio in a capital efficient and disciplined manner.
Columbus is guided by the following core values; safe and sustainable, stronger together, creative excellence, positive energy, totally trusted and personally responsible.
The Company is led by an experienced Board and senior management team with supportive shareholders and intends on leveraging its expertise and experience to build an attractive and diversified portfolio of assets across South America in order to build an oil production led South American exploration business.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
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Market Cap: £34.15 m
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