content_image/152624.jpg content_image/152625.jpg content_image/152626.jpg
## NOTES TO THE FINANCIAL STATEMENTS CONTINUED 

## FOR THE YEAR ENDED 31 DECEMBER 2014 

## 5 STAFF COSTS CONTINUED 

The average number of employees (including Directors) employed during the year by the Company was six (2013 – six) and for the Group was six (2013 – six). All employees and Directors of the Group and the Company are considered to be the key management personnel. 

Of the $244,715 (2013 – $427,109) share-based payment charge included in the consolidated statement of comprehensive income, $201,053 (2013 – $427,109) has been charged in respect of share options granted to staff (including Directors) in the current and prior years. The remaining $43,662 (2013 – $nil) relates to share options granted to external parties, see note 7 for further details. 

## 6 DIRECTORS’ EMOLUMENTS 

The Directors’ emoluments for the year are as follows: 

<img src='content_image/152624.jpg'>

The fees and share-based payments made to each Director are disclosed in the Remuneration Committee Report. During the year, the highest paid Director received total remuneration of $475,457 (2013 – $391,333). 

In 2011, the Group granted to two Directors of Borders and Southern Petroleum Plc, for nil consideration, 1,000,000 share options each, with a total fair value of $774,447. Of this amount $123,234 has been expensed during the year. 

## 7 SHARE-BASED PAYMENT 

In July 2014, the Group granted 1,400,000 share options to an employee of the Group. The options vest after three years and expire after 10 years. Because of the difficulty in measuring the fair value of the services received, this has been determined by reference to the fair value of the options granted. A Black-Scholes model has been used to determine the fair value of the options granted (see below). 

<img src='content_image/152625.jpg'>

The weighted average contractual life of the options outstanding at the year end was seven years (2013 – eight years). 

The range of exercise prices of share options outstanding at the end of the year is 11.25–74p (2013: 15p – 74p). 

The following information is relevant in the determination of the fair value of the options granted during the year under the scheme operated by the Company. 

<img src='content_image/152626.jpg'>

The expected volatility used to calculate the share-based remuneration expense was based on the standard deviation of the Company’s monthly close share prices since inception. 

