Dominion announces that the Board of Directors has on 23 June, 2008 ratified the

award of certain option and warrant awards agreed with a number of key

employees, as part of their employment arrangements, as well as to key

consultants in connection with their engagement with the Company.

 

The options amount to 12,674,828 of which 3,973,257 have been awarded to Rob

Shepherd (“RS”), an executive director of Dominion and 993,314 to Roland Wessel

(“RW”), a non-executive director of Dominion. The exercise price is 18.75 p, being

the closing share price on 23 June, 2008, and all options are subject to certain

conditions, including that they may only be exercised from the second anniversary

of the deemed award date.

 

Following the award of these options:

 

(a) RS will hold interests in respect of 8,242,282 shares (and 3,973,257

options) in the Company; and

 

(b) RW will hold interests in respect of 993,314 options in respect of shares in

the Company.

The warrants awarded amount to 3,973,256 and are subject to similar conditions as

the options.

 

The Board has also approved the issue of 2,963,276 new common shares in

connection with the exercise of warrants held by Ore Hill Partners LLC (“Ore Hill”)

and Xerion Partners LLC (“Xerion”), for a consideration of US$0.27 per share.

 

Following the issue of these new common shares:

 

(a) Ore Hill will be issued 1,481,638 new common shares and will hold

25,923,106 ordinary shares in the Company comprising 6.07% of the issued

share capital; and

 

(b) Xerion will be issued 1,481,638 new common shares and will hold

10,481,638 shares in the Company comprising 2.45% of the issued share

capital.

 

The Board has also authorised the purchase and cancellation of 2,979,943 options

from an employee who is leaving the Company.

 

Following the above awards of options and warrants, cancellation of options and

exercising of warrants, the total options outstanding are 48,661,793 and the total

warrants outstanding are 9,138,491.

 

The total options outstanding include 5,800,955 originally issued to Carlo Seidel

(“CS”), a former director of the Company. There is currently a dispute between the

Company and CS in relation, inter alia, to these options. The Company claims that

these options are no longer exercisable due to the termination of his employment,

but CS disputes this.

 

Application has been made to AIM for 2,963,276 new common shares to be issued

in connection with the exercise of warrants to be admitted to trading on AIM. It is

expected that admission of the new common shares will become effective and

dealings on AIM will commence at 8:00am on 30 June 2008.

 

Following the expected admission to AIM of the new common shares in connection

with the exercise of warrants, the total amount of common shares in issue will

amount to 427,263,557.

 

 

ENQUIRIES:

Dominion Petroleum Limited

Mike Garland, Chief Executive Officer;

Rob Shepherd, Chief Financial Officer;

Via Dominion Petroleum Administrative Services Ltd at:

+44 (0) 20 7659 0455

 

Pelham Public Relations

Archie Berens

+44 (0) 20 7743 6679

 

Seymour Pierce Limited

Nandita Sahgal

+44 (0) 20 7107 8000