Aurora Oil & Gas Limited - Proposed Issue of Options to a Director

PERTH, Western Australia, Aug. 7, 2013 /CNW/ - Aurora Oil & Gas Limited (Aurora) (ASX: AUT) (TSX: AEF) advises that, subject to shareholder approval, the directors have resolved to grant 500,000 options to John Atkins, a Non-Executive Director of the Company, on the following terms and conditions as set out below:

Series	No. of Options	Exercise Price	Vesting Condition	Vesting Date	Expiry Date
1	250,000	110% of the VWAP^1 of the shares on the ASX from 6 August 2013 (being the date of Board approval for the proposed grant of options) to the date of the shareholder meeting approving the grant of options.	Continuation of service and satisfaction of the share price condition.	18 August 2014	5 years from date of grant
2	250,000	120% of the VWAP^1 of the shares on the ASX from 6 August 2013 (being the date of Board approval for the proposed grant of options) to the date of the shareholder meeting approving the grant of options.	Continuation of service and satisfaction of the share price condition.	18 August 2015	5 years from date of grant
TOTAL	500,000

The options will be issued for nil consideration.

The share price condition provides that the options will not vest until such a time as the VWAP on the ASX of the underlying securities in the 15 days prior to the test date (being the date which is 12 months from the date of grant of the options) is at least equal to the exercise price of the options.

Upon exercise each option will entitle Mr Atkins to one ordinary share which will rank pari pasu in all respects with the Company's then issued shares.

The directors recommend the grant of options to Mr Atkins as they consider that the grant of options encourages alignment of Mr Atkins's interests with that of shareholders. The grant of options to Mr Atkins is consistent with the past practice of granting options to Non-Executive Directors upon appointment to the Board and it is anticipated that a grant of options will be necessary to as part of Aurora's current intention to broaden the Board further to include US based oil and gas experienced Non-Executive Director(s).

About Aurora

Aurora is an Australian and Toronto listed oil and gas company active in the over pressured liquids rich region of the Eagle Ford shale in Texas, United States.  Aurora is engaged in the development and production of oil, condensate and natural gas in Karnes, Live Oak and Atascosa counties in South Texas. Aurora participates in approximately 79,900 highly contiguous gross acres in the heart of the trend, including approximately 22,000 net acres within the Sugarkane Field in the overpressured and liquids core of the Eagle Ford.

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¹ Volume weighted average price.

 

SOURCE: Aurora Oil & Gas Limited

Jon Stewart
Executive Chairman
Aurora Oil & Gas Limited
Tel: [phone]

Shaun Duffy
F T I Consulting
Tel: [phone]
Mob: [phone]
[email protected]

Jane Munday
F T I Consulting
Tel: [phone]
Mob: [phone]
[email protected]

Aurora Oil & Gas Limited ABN 90 008 787 988

HEAD OFFICE
Level 20, 77 St. Georges Terrace, Perth, WA 6000, Australia
GPO Box 2530 Perth, WA 6001, Australia
t [phone], f [phone], e [email protected]

HOUSTON
Aurora USA Oil & Gas, Inc. a subsidiary of Aurora Oil & Gas Limited
1111 Louisiana, Suite 4550, Houston, TX 77002 USA
t [phone], f [phone]
www.auroraoag.com.au