Page 68 - Sun Resources Annual Report 2013

18 Share-based Payments (continued)
A Black-scholes valuation was completed for this issue using an applicable exercise price of $0.001 per option on or
before 30 June 2013 in consideration for the acquisition of the Delta Oil Project. The fair value calculated as $5,176,583
for these options at the date of issue was independently determined using the Black-Scholes option pricing model that
takes into account the exercise price ($0.001), the share price at grant date ($0.07), expected volatility of the share
price (90%) and the risk-free interest rate (2.45%).
Class H Performance Options
The Company issued 75,000,000 Class H Performance Options expired on 5.00pm on the 31 March 2013.
These options can be exercised by the holder in the event a substantial portion of the acres the subject of the Delta
Oil Project are farmed out to a reputable third party or is the subject of a materially value accretive transaction with a
reputable third party, on or before 5.00pm WST on 31 March 2013.
The Company determined that it was “less likely” rather than “more likely” that the performance milestone would be
achieved due to the inherent uncertainty of oil & gas exploration.
A value of zero was given to this class of options.
Class I Performance Options
The Company issued 40,000,000 Class I Performance Options expired on 5.00pm on the 31 March 2013.
These options can be exercised by the holder in the event a substantial portion of the acres the subject of the Amerril
Oil Project are farmed out to a reputable third party or is the subject of a materially value accretive transaction with a
reputable third party, on or before 5.00pm WST on 31 March 2013.
The Company determined that it was “less likely” rather than “more likely” that the performance milestone would be
achieved due to the inherent uncertainty of oil & gas exploration.
A value of zero was given to this class of options.
2012
Options issued in 2012
Grant Date Class Expiry/Milestone
Expiry Date
Exercise
Price
Granted
during Year
Exercised
during Year
Forfeited
during
Year
Balance at
end of Year
Vested at end
of Year
Cents Number Number Number Number Number
Options
26 October 2011 Ordinary 31 March 2014 2.5 30,000,000 (2,700,000) - 27,300,000 27,300,000
16 November 2011 Ordinary 16 November 2014 3.6 4,650,000 (1,000,000) - 3,650,000 3,650,000
16 November 2011 Ordinary 16 November 2014 3.6 20,000,000 - - 20,000,000 20,000,000
21 March 2012 Ordinary 31 March 2014 2.5 38,025,000 - - 38,025,000 38,025,000
18 May 2012 Ordinary 31 March 2014 2.5 3,710,000 - - 3,710,000 3,710,000
Performance Options
March and May 2012 Class B 31 August 2012 0.1 62,602,500 - - 62,602,500 62,602,500
March and May 2012 Class C 31 August 2012 0.1 33,388,000 - - 33,388,000 33,388,000
March and May 2012 Class D 28 February 2013 0.1 54,255,500 - - 54,255,500 54,255,500
March and May 2012 Class E 31 August 2016 0.1 54,255,500 - - 54,255,500 54,255,500
March and May 2012 Class F 31 August 2016 0.1 62,602,500 - - 62,602,500 62,602,500
The Company issued 30,000,000 unlisted options on 26 October 2011 to stockbroking firms with an exercise price
of $0.025 per option on or before 31 March 2014 in consideration for services rendered in relation to the acquisition
of the Delta Oil Project. The fair value calculated of $357,601 for these thirty month options at the date of issue was
independently determined using the Black-Scholes option pricing model that takes into account the exercise price
($0.025), the share price at grant date ($0.023), expected volatility of the share price (80%) and the risk-free interest
rate (3.78%).
The Company issued 24,650,000 unlisted options on 16 November 2011 to Directors, staff and consultants with
an exercise price of $0.036 per option on or before 16 November 2014 as an incentive. The fair value calculated of
$259,814 for these three year options at the date of issue was independently determined using the Black-Scholes
option pricing model that takes into account the exercise price ($0.036), the share price at grant date ($0.024),
expected volatility of the share price (80%) and the risk-free interest rate (3.78%).
SUN RESOURCES ANNUAL REPORT 2013 66
NOTES TO AND FORMING PART OF THE CONSOLIDATED
FINANCIAL STATEMENTS