HOUSTON -- Pogo Producing Co. and Third Point LLC. have reached an agreement under which Pogo's board of directors will be expanded from eight to 10 members. Daniel S. Loeb and Bradley L. Radoff of Third Point will be appointed to the board effective immediately.
As permitted by the agreement, Pogo may at a later date offer to appoint Robert B. Rowling of TRT Holdings Inc. to an additional seat on the board. Third Point and its affiliates have agreed not to solicit proxies in connection with Pogo's 2007 annual meeting or take certain other stockholder actions.
Pogo and its financial advisors Goldman, Sachs & Co. and TD Securities Inc. are exploring strategic alternatives, including the sale or merger of Pogo.
Pogo will continue to pursue simultaneously the potential sale of significant assets including its Canadian, Gulf of Mexico, or other properties.
"We are pleased that this matter has been resolved in a manner that we believe serves the best interests of all Pogo shareholders," says Paul G. Van Wagenen, Pogo chairman and CEO. "Through this agreement, we will avoid a potentially costly and disruptive proxy contest at a time when Pogo is exploring a range of strategic alternatives to enhance shareholder value. I would like to welcome our new board members and believe that their experience and insights will benefit Pogo and its shareholders."