Stock Based Compensation
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Sep. 30, 2013
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Based Compensation |
Note 6 - Stock Based Compensation
The 2012 Stock Incentive Plan
On January 16, 2013, the Company's shareholders approved the Magellan Petroleum Corporation 2012 Omnibus Incentive Compensation Plan (the "2012 Stock Incentive Plan"). The 2012 Stock Incentive Plan replaces the Company's 1998 Stock Incentive Plan (the "1998 Stock Plan"). The 2012 Stock Incentive Plan provides for the granting of stock options, stock appreciation rights, restricted stock and/or restricted stock units, performance shares and/or performance units, incentive awards, cash awards, and other stock based awards to employees, including officers, directors, and consultants of the Company (or subsidiaries of the Company) who are selected to receive incentive compensation awards by the Compensation, Nominating and Governance Committee (the "CNG Committee") of the Board of Directors of the Company (the "Board"), which is the plan administrator for the 2012 Stock Incentive Plan. The stated maximum number of shares of the Company's common stock authorized for awards under the 2012 Stock Incentive Plan is 5,000,000 shares plus any remaining shares under the 1998 Stock Plan immediately before the effective date of the 2012 Stock Incentive Plan, which was 288,435 as of January 15, 2013. The maximum aggregate annual number of options or stock appreciation rights that may be granted to one participant is 1,000,000, and the maximum annual number of performance shares, performance units, restricted stock, or restricted stock units is 500,000. The maximum term of the 2012 Stock Incentive Plan is ten years.
Stock Option Grants
Under the 2012 Stock Incentive Plan, stock option grants may contain time based, performance based, or market based vesting provisions. As of September 30, 2013, all PBOs granted were fully vested and 3,335,107 shares, including forfeited shares, were available for future issuance. During the three months ended September 30, 2013, there were no stock options granted. Stock options outstanding have expiration dates ranging from January 16, 2014, to January 15, 2023. See Note 15 - Subsequent Events, for information about stock option grants made after September 30, 2013.
The following table summarizes the stock option activity for the three months ended September 30, 2013:
(1) Weighted average exercise price per share
The fair value of shares issued under the 2012 Stock Incentive Plan was estimated using the following weighted-average assumptions for the three months ended:
Stock Compensation Expense
The Company recorded $0.7 million of related stock compensation expense for the three months ended September 30, 2013, and $0.3 million of related stock compensation expense for the three months ended September 30, 2012. Stock based compensation is included in general and administrative expense in the unaudited condensed consolidated statements of operations. As of September 30, 2013, the unrecorded expected future compensation expense related to stock option awards was $1.0 million. The Company's compensation policy is designed to provide the Company's non-employee directors with a portion of their annual base Board service compensation in the form of equity. Between July 1, 2013, and September 30, 2013, the Company issued a total of 266,664 shares of its common stock to non-employee directors pursuant to this policy.
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