Xun Energy, Inc. (fka XNRG)

[4on4off]

I want to personally thank XNRG CEO Jerry Mikolajczyk for taking the time to answer the following question the company forum:

THANK YOU JERRY!

What I like about the response from Jerry is that it demonstrates the intricacies involved with commodities trading especially when foreign countries are involved. Individuals not versed in the principles of commodities trading tend to think it is cut and dry from start to finish. Many hurdles are involved as the process works it way through each level of any transaction which tends to turn into many transactions for a single delivery of a given product. Especially with oil and oil related products.

#2 Posted : about 4 hours ago

Questions #1: Why is the supplier having a difficult time fulfilling/deliverying their product?

Response to #1: We do not know why the supplier is having difficulty in fulfilling the contract and are not in a position to find out due to the terms and conditions of the Sales and Purchase Agreement (SPA) between the supplier and the JV002. They have on two separate occasions provided us with documentation which did not meet our standards upon completion of our due diligence. Since the supplier is based in a foreign country, the process to enforce the contract must follow the procedures as laid out by the International Chamber of Commerce (ICC). This is a very slow and costly procedure. In the meantime, the supplier has represented to JV002 that they intend to fulfill their contractual obligations per the SPA. Failure by the supplier to perform per the SPA will cause them to be in default and classified as a Non-Performer. This is not a classification they wish to have as JV002 could Black List them in the industry which could severely impact their business relationships.

Questions #2: Is the recent drop in price effecting supplier's ability to deliver?

Response to #2: It should not be. We have no means of understanding their issues as to why they are not performing to the SPA terms and conditions. They have not communicated their reasons to JV002 and as such are not required to per terms and conditions of the SPA. They either perform or not perform. The JV002 remedy is to pursue legal action as outlined by the ICC.

THERE ARE NO ASSURANCES THAT THE COMPANY WILL COMMENCE OPERATIONS OF XOM. THERE ARE NO ASSURANCES THAT SHOULD THE COMPANY COMMENCE OPERATIONS IN XOM, XOM WILL GENERATE REVENUE. THERE ARE NO ASSURANCES THAT SHOULD THE COMPANY GENERATE REVENUE IN XOM, THAT XOM OR THE COMPANY WILL BE PROFITABLE.

THERE CAN BE NO ASSURANCE THAT JV002 WILL BE ABLE TO SELL THE AVIATION JET FUEL SHOULD JV002 BE SUCCESSFUL CLOSING ON THE AVIATION JET FUEL PURCHASE SHOULD THE AVIATION JET FUEL BE AT ROTTERDAM. EVEN IF JV002 WAS SUCCESSFUL IN SELLING THE AVIATION JET FUEL, THERE CAN BE NO ASSURANCE THAT THE SALE OF THE AVIATION JET FUEL WILL BE PROFITABLE OR THAT THE COMPANY WILL BE ABLE TO GENERATE SUFFICIENT REVENUES TO OPERATE PROFITABLY.

DISCLAIMER: SUBJECT TO SAFE HARBOR CLAUSE.

We thank you for your interest, support and faith in the Company.

Respectfully,
Xun Energy, Inc.
Jerry G. Mikolajczyk
President and CEO

Safe Harbor

The statements contained in this post may not be historical fact, are forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995), within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The forward-looking statements contained herein are based on current expectations that involve a number of risks and uncertainties. These statements can be identified by the use of forward-looking terminology such as “believes,” “expects,” “may,” “will,” “should,” "projects" or “anticipates,” or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy that involve risks and uncertainties. The Company wishes to caution the reader that its forward-looking statements that are historical facts are only predictions. No assurances can be given that the future results indicated, whether expressed or implied, will be achieved. While sometimes presented with numerical specificity, these projections and other forward-looking statements are based upon a variety of assumptions relating to the business of the Company, which, although considered reasonable by the Company, may not be realized. Because of the number and range of assumptions underlying the Company’s forward-looking statements, many of which are subject to significant uncertainties and contingencies that are beyond the reasonable control of the Company, some of the assumptions inevitably will not materialize, and unanticipated events and circumstances may occur subsequent to the date of this report. These forward-looking statements are based on current expectations and the Company assumes no obligation to update this information. Therefore, the actual experience of the Company and the results achieved during the period covered by any particular forward-looking statements may differ substantially from those projected. Consequently, the inclusion of forward-looking statements should not be regarded as a representation by the Company or any other person that these estimates and projections will be realized. The Company’s actual results may vary materially. There can be no assurance that any of these expectations will be realized or that any of the forward-looking statements contained herein will prove to be accurate. There is no guarantee that the Company will close on the financing or close on the acquisition of the producing oil and gas leases.

http://forum.xunenergy.com/default.aspx?g=posts&t=4754&find=unread#post6120