Hurricane curbs share awards amid corporate governance review

SHETLAND oil exploration star Hurricane Energy has said board members have relinquished potentially valuable share awards following unrest about its corporate governance arrangements.

The oil and gas firm said David Jenkins and John van der Welle had relinquished, for nil consideration, awards granted to them under its non-executive director share option plan.

The Surrey-based company said the directors had made the move to affirm their independence under the UK Corporate Governance Code.

Hurricane added it does not plan to make share incentive awards to non-executive directors in the future.

The firm included news of the change in an update on progress in its efforts to enhance its corporate governance arrangements ahead of a possible move from Aim to the main market on the London Stock Exchange.

Hurricane shot to prominence after making the bumper Lancaster find West of Shetland. It raised around £400 million from investors in July to develop the field.

However, the company’s corporate governance arrangements were put in the spotlight in November after Robert Arnott resigned as chairman following a boardroom disagreement.

The company said Mr Arnott decided to resign after it became apparent there wasn’t an alignment of views between him and the rest of the board on certain aspects of its processes.

Hurricane formed a boardlevel listings and governance committee to evaluate its structures after he left.

It is using an executive search firm to source a new chairman. Mr Jenkins is interim chairman.

The company said:“As Hurricane continues to enhance its corporate governance ... the Company is planning to carry out a corporate governance roadshow with investors and proxy advisers to discuss the changes.”

In 2013 Hurricane introduced a scheme under which non-executive directors could be awarded options to acquire shares at minimal cost subject to conditions.

Mr Jenkins and Mr van der Welle had options to acquire up to 333,000 shares each subject to performance conditions.

The awards would only have vested if Hurricane shares had sold for an average of 55p or more for three months, compared with 39p yesterday.