NOTES TO THE FINANCIAL STATEMENTS CONTINUED FOR THE FINANCIAL YEAR ENDED 30 JUNE 2011 Note 27. Share-based Payments  (a) Employee Share Option Plan The share-based payments plan is described below. There has been no cancellation to the plan during the financial year.  Amendments to the plan and its continuing operation were approved by shareholders at the 2009 Annual General Meeting. The Group had an ESOP, which has been operating since the listing of the Company on the ASX. ESOP options expire up to four  years after they are granted. The exercise price of ESOP options, issued during the financial year, is based on the volume  weighted average price at which the Company’s ordinary shares are traded on the ASX during the 180 trading days before the  ESOP options are offered. ESOP options may be exercised after the date the option was granted. If there is a change of control  in the Company, all unexercised ESOP options will become immediately exercisable. Options granted under the ESOP carry no  dividend or voting rights. When exercisable, each ESOP option is convertible into one ordinary share of the Company. The following summary reconciles the outstanding ESOP options over unissued ordinary shares in the Company at the beginning  and end of the financial year: The weighted average fair value of ESOP options granted during the financial year was $1.99 (2010: $3.31). The weighted average share price when the ESOP options were exercised during the financial year was $7.66 (2010: $9.38). ESOP options outstanding as at 30 June 2011 had a range of exercise prices from $6.84 to $14.07 (30 June 2010: $2.95 to  $14.07) with a weighted average remaining contractual life of 956 days (30 June 2010: 866 days). Details of ESOP options outstanding at the end of the financial year are: 72 Karoon Gas Australia Ltd  Annual Report 2011 Consolidated  Consolidated 2011 2010 2011  Weighted Average 2010  Weighted Average Number  Exercise Price Number  Exercise Price Balance at beginning of financial year  3,830,000  $9.27 3,010,000  $4.36 Granted during financial year  1,445,000  $9.77 2,330,000  $12.08 Exercised during financial year  (1,300,000)  $4.61 (1,480,000)  $3.76 Cancelled during financial year  (200,000)  $10.64 (30,000)  $6.84 Forfeited during financial year  -  - -  - Expired during financial year  -  - -  - Balance at end of financial year  3,775,000  $11.00 3,830,000  $9.27 Exercisable at end of financial year  830,000  $11.81 2,030,000  $7.30 Grant Date  Expiry Date  Exercise Price Per Option  Number 29 June 2009  30 October 2011  $6.84  200,000 23 November 2009  12 November 2013  $14.07  530,000 9 December 2009  18 November 2013  $11.50  1,600,000 25 March 2010  18 November 2013  $11.50  100,000 3 September 2010  31 October 2014  $9.77  945,000 12 January 2011  31 October 2014  $9.77  300,000 18 November 2010  18 November 2014  $9.77  100,000 Total ESOP options  3,775,000