Songa Offshore Awards “Synthetic Options” to Certain Key Personnel

The board of directors of Songa Offshore SE has decided to award stock appreciation rights (or so-called “synthetic options”) to certain key personnel of the Songa Offshore Group. The number of new stock appreciation rights corresponds to the value of 2,500,000 ordinary shares in the Company.

Seen in combination with the similar rights that were granted to employees in 2009 and 2011, the total number of outstanding stock appreciation rights as per today corresponds to 5,761,860 ordinary shares in the Company (or approx. 3.44% of the Company’s existing share capital).

Each right gives the holder a right to receive, upon exercise, cash compensation equal to the quoted share price of the shares upon exercise, less the strike price. The strike price has been set at NOK 18.30 per share, which equals the closing price for the shares of Songa Offshore SE on the Oslo Stock Exchange on 30 December 2011. The rights will be vested over a 3 year period counted from 1 January 2012, with 1/3 of the rights being vested each following year. The rights may be exercised at any time in the 24 month period after the relevant vesting period.

The following primary insiders have been awarded stock appreciation rights under the new incentive programme:

Asbjørn Vavik, CEO, 300,000 new stock appreciation rights. Mr Vavik has exercised 200,000 options as per 30 December 2011 at a strike price of NOK 18.30 per share. This is done due to the fact that these options would expire January 1, 2012. Following these transactions, Mr. Vavik holds 100,001 shares and 1,000,000 rights to shares in the Company (including the stock appreciation rights).

Geir Karlsen, CFO, 300,000 new stock appreciation rights. Following the transaction, Mr. Karlsen holds 800,000 rights to shares in the Company.

Trond Christensen, COO, 300,000 new stock appreciation rights. Mr Christensen has exercised 200,000 options as per December 30 2011 at a strike price of NOK 18.30 per share. This is done due to the fact that these options would expire January 1, 2012. Following the transactions, Mr. Christensen holds 320,001 shares and 1,000,000 rights to shares in the Company (including the stock appreciation rights).

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Offshore Nieuws Staff , January 2, 2012; Image: Songa Offshore