SOUTH JORDAN, Utah, July 1, 2015 /PRNewswire/ -- Pioneer Oil and Gas (Pink Sheets: POGS) (News) Pioneer Oil and Gas announced the retirement of Don J. Colton as President, Treasurer and Chairman of the Board of Directors of Pioneer Oil and Gas. He will remain on the Board of Directors. Gregg B. Colton will replace him as Chairman of the Board, President and Treasurer of the Company. A. Franklin Adams will replace Gregg B. Colton as Secretary of the Company.
The Pioneer Employee Stock Ownership Plan (ESOP) will purchase Mr. Don Colton's 993,579 shares in the ESOP plan for $1.00 per share. This is the same price as the Company's 2012 tender offer and the same price paid by the Plan for recent larger purchases of shares (over 200,000 shares). Purchases by the ESOP are funded from loans by the Company. Since Mr. Colton's retirement is voluntary no severance payments will be made.
The Company also announced that salaries of all remaining Company personnel will be cut by 40 percent. The net effect of Mr. Don Colton's retirement and the salary reductions will have a net positive effect on cash flow over a two year period.
Pioneer's detailed financial statements and proxy information can be viewed at http://www.piol.com/fi.html.
Statements concerning future financial results, production, expenditures, reserve estimates, and other items are forward-looking statements. These statements are based on assumptions concerning commodity prices, drilling results and other factors management believes are reasonable based on currently available information; however, management's assumptions and the Company's future performance are both subject to a wide range of business risks, and there is no assurance that these goals and projections can or will be met.
SOURCE Pioneer Oil and Gas