NOTE 8 — STOCK-BASED COMPENSATION

For the three months ended March 31, 2020 and 2019, the Company recognized stock-based compensation expense of $0.1 million and $0.1 million, respectively.

Prior to the Company’s Redomiciliation, SEAL issued restricted share units (“RSUs”) pursuant to its Long Term Incentive Plan (the “Plan”) to motivate management and employees to make decisions benefiting long-term value creation, retain management and employees and reward the achievement of the Company’s long-term goals. The RSUs are generally settled based on the achievement of certain goals established by the Compensation Committee and approved by the Board. In connection with the Redomiciliation, in November 2019 Sundance Energy Inc. assumed SEAL’s obligations with respect to the settlement of the RSUs that were granted pursuant to the Plan prior to the effective date of the Redomiciliation. Accordingly, the RSUs will be settled in shares of common stock of Sundance Energy Inc. rather than ordinary shares of SEAL. Following the effective date of the Redomiciliation, no new awards or grants have been or will be made pursuant to the Plan.

The following table summarizes the RSU activity from January 1, 2020 through March 31, 2020 and provides information for RSUs outstanding at the dates indicated.


		Weighted Average
		Fair Value at
	Number of RSUs	Grant Date
Outstanding at December 31, 2019	84,929	$	22.97
Granted	—	$	—
Vested (1)	(496)	$	57.76
Forfeited (2)	(9,845)	$	51.73
Outstanding at March 31, 2020	74,588	$	18.59

(1)

Vested shares are expected to be issued later during 2020.

(2)

Includes 496 shares that were forfeited as the market-based vesting conditions were not satisfied.