CALGARY, Dec. 3, 2013 /CNW/ - Petroamerica Oil Corp. (TSXV:PTA) ("Petroamerica" or the "Company"), a junior oil and gas company operating in Colombia is pleased to announce the establishment of a Phantom Stock Appreciation Right Plan (the "Plan") and the awarding of Phantom Stock Appreciation Rights ("SARs") to certain employees, advisors, Officers and Directors of the Company.
The Plan is intended to assist in attracting, retaining, engaging and rewarding directors, officers, employees of the Company, provide additional incentive to these people for their efforts on behalf of the Company and to align the management team of the Corporation with the enhancement of shareholder value. The Plan is intended to supplement the current stock option plan that is in place. Under the Plan, participants are entitled to cash payments based on the growth in value of Petroamerica's common shares. The Company is able to issue SARs to a maximum of 10% of the number of the issued and outstanding common shares of the Company from time to time. In the event that a participant in the plan elects to exercise any SARs granted to them, they will be entitled to a cash settlement of the difference in the fair market price of the common shares of Petroamerica at the date of exercise less the strike price of the SARs. The exercise of any SARs will not affect the overall equity of Petroamerica as this plan does not provide any equity rights to the holders of any granted SARs. Unless otherwise determined by the Board, SARs will have a maximum life of ten years and a vesting period of no longer than three years from the date of the SARs grant. Effective November 29, 2013 a total of 22,730,000 SARs have been granted to certain directors, officers, employees and advisors of the Company with a strike price of $0.325 each, which was the closing market price for Petroamerica common shares on the date of grant. These SARs vest in thirds, with one third vesting upon issuance, and one third vesting on each of the first and second anniversaries of issuance and expire on November 28, 2023.
Petroamerica Oil Corp. is an oil and gas exploration and production company with activities in Colombia. Petroamerica produces more than 6,000 bopd from two oil fields, is appraising two new discoveries and has interests in five exploration blocks, all located in Colombia's Llanos Basin. Petroamerica's shares are listed on the TSX Venture Exchange under the symbol "PTA".
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Petroamerica Oil Corp.
For further information:
President and CEO
COO, Executive Vice President