SUBJECT: SHAREHOLDERS APPROVE DEREGISTRATION
DATE: September 19, 2005
South Jordan, Utah --- Pioneer Oil and Gas (OTC Bulletin Board: PIOL) announced that shareholders at the annual meeting held today approved a 2000-1 reverse stock split and subsequent repurchase of fractional shares. The Company will pay $1.50 for each pre-split share purchased. The transactions should reduce the number of shareholders to less than 300 in order for the Company to deregister as a fully reporting company as of September 26, 2005, the date of the repurchase of fractional shares. Shareholders owning 4,732,684 or 58.72 percent of the Company’s total issued and outstanding common stock approved the proposal. Only 132,804 shares voted against the proposal and 21,810 abstained.
Following the repurchase of shares, the Company will effect a 1-2000 forward stock split on September 29, 2005.
The Company is deregistering in order to reduce substantial compliance costs associated with the Sarbanes-Oxley legislation. The Company had previously announced its intent to do so in a prior news release on May 5, 2005 and the Company filed a DEF 14A definitive proxy statement with the SEC on July 28, 2005. Shareholders of record as of August 4, 2005 voted at the meeting.
The proposal to elect the Board of Directors nominated by the Company and ratification of Jones Simkins LLP as auditors passed by 95.96 and 96.61 percent respectively.
Further information on Pioneer can be
viewed at its web site at www.piol.com.
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.
For more information drop us an E-Mail or contact Don J. Colton at (801) 566-3000