Xun Energy, Inc. (fka XNRG)

[4on4off]

Good morning. Things are looking up as XNRG CEO Jerry Mikolajczyk continues to strive towards making this company a success to the benefit of shareholders.

This evident from a recent update:

(#2 Posted : 2 months ago)

Question #1: It has been a little while since we heard from you and I was wondering if there is anything that can be given via forum update on general status of company,deals etc..

Response #1: As of December 6, 2015, we provide the following update:

Administration

The Quarterly reports for November 30, 2014 and February 28, 2015 are with the auditors. On July 8, 2015, the Company put the reviews on a temporary hold which became a long term hold until the company is financially able to complete the quarterly reviews and audits.

Oil and Gas Division

Rice #15 is temporally shut in due to the operations becoming uneconomical at the low WTI crude oil prices

Xun Oil Marketing Division

Orders

Our focus since the last update 3 months ago has not changed much. The Xun Oil Marketing Division (XOM) is very active with several suppliers, funders and buyers working on several orders that are in play.

Our JV0015 partnership, Invictus Xun Enterprises Limited (www.hongkongdir.com/invictus-xun-enterprises-limited-ccebpfb/ ), ended abruptly on October 7 when the partner made a unilateral decision to go sideways on the Company after we educated them and introduced them to all of our suppliers! Good part is that all of our suppliers are loyal to the Company and reported the circumvention. The Company has a Non Compete, Non Circumvent Agreement (NDANCA) with Invictus and they are obligated to compensate the Company should any transactions materialize as we are obliged to compensate them for any parties that we may transact with as a result of exchanging information.

One of the fallouts of the breakup of JV0015 is that the Company absorbed a scrap copper wire transaction with the exit buyer in place. Since then, the Company has sourced it’s a scrap copper wire supplier, will take title and then resell the scrap copper wire to the exit buyer. Upon successful closing of the planned trial lift of 100 Metric Tons (MT), which could happen before year end, providing the contractual terms and conditions are met by the exit buyer, the Company will issue an 8K filing. Upon successful trial lift completion, the contract will increase to 5,000 MT per month for a total of 60,500 MT over 12 months plus rolls and extensions.

THERE ARE NO ASSURANCES THAT THE SCRAP COPPER WIRE TRANSACTION WILL CLOSE. THERE ARE NO ASSURANCES THAT SHOULD THE SCAP COPPER WIRE TRANSACTION CLOSE, THAT THE TRANSACTION WILL BE PROFITABLE.

With regard to other orders in play, we have moved away from dependency on jet fuel and focused on a diversified portfolio of products. These orders are broken down into two categories, (a) reselling products after purchase and (b) facilitating either the purchase or the sale of products. Due to confidentiality agreements with the parties, the Company is restricted from disclosing the parties or the pricing of the orders. However, we can disclose that several orders are for the reselling of products and 1 order for facilitating the order. Table 1 below provides details of these orders in play at the time of writing. The orders are in various stages of closing and depending on shipping distances and times or location of product, a closing could happen quickly or could take over 30 days from the Proof Of Financing (POF).


DISCLAIMER: THESE ORDERS ARE FLUID IN NATURE AND HAVE MANY VARIABLES THAT MAY REQUIRE REWORKING DURING THE PERIOD OF NEGOTIATION IN OR TO REACH A MUTUALLY BENEFICIAL TRANSACTION. ANY DISRUPTION IN THE PROCESS MAY CAUSE THE ORDER TO BE DELAYED OR CANCELLED, AS WE HAVE ENCOUNTERED NUMEROUS TIMES SINCE THE BOARD ACTUATED XOM. A TYPICAL ORDER FROM START TO CLOSE MAY TAKE FROM A COUPLE OF WEEKS TO SEVERAL WEEKS FOR A SUCCESSFUL CLOSE. EACH ORDER WHERE A BUYER OR SELLER IS NEW TO XOM MAY REQUIRE MANY HOURS TO BE CONSUMED IN DUE DILIGENCE, AS DUE DILIGENCE INVOLVES INTERNATIONAL COMMUNICATIONS, TRANSLATIONS, AND VETTING OF MANY DOCUMENTS. ONCE PARTIES TO AN ORDER REACH A PRELIMINARY CONSENSUS, MANY MORE HOURS ARE NEEDED TO DRAFT AND CIRCULATE DOCUMENTS BEFORE FINAL AGREEMENTS ARE READY FOR SIGNATORY AND NOTARIZATION.

Below are transactions that XOM have in process as of December 6, 2015:



Over the last several months, since the election of the new president in Nigeria, the Company has been working with a creditable and proven supplier of Bonny Light Crude Oil (BLCO) based in Benin. We are working with a funder to fund the purchase of the BLCO. The margins are not as great as jet fuel. However, the quantity is greater. We plan to take title to the BLCO and resell to the majors. With prices of crude oil down, the demand ironically is high. Nigeria has a negative reputation in the oil patch. The new President has made a lot of positive moves to clean up the reputation of the Nigerian oil industry. We have noticed positive improvements in the procedures and in the pricing structure for BLCO.

The Nigerian National Petroleum Corporation (NNPC) reports a daily production of 2.5 million barrels of crude oil, link: nnpcgroup.com/NNPCBusiness/UpstreamVentures/OilProduction.aspx. We are cautiously excited about the potential of this business relationship and the prospects of handling BLCO. In addition to BLCO, Nigeria is a supplier of LNG and we are in discussions with a supplier of LNG from Nigeria. LNG is a challenging product to handle as logistics of transporting LNG must be in place either by the exit buyer or the supplier.

THERE ARE NO ASSURANCES THAT THE COMPANY WILL BE ABLE TO CLOSE ON ANY OF THE PHYSICAL COMMODITY TRADES, WHETHER AS A RESELLER OR FACILITATOR. THERE ARE NO ASSURANCES THAT SHOULD THE COMPANY CLOSE ON A PHYSICAL COMMODITY TRADE, WHETHER AS A RESELLER OR FACILITATOR, THAT IT WILL BE PROFITABLE.

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.

Needless to say it is quite clear that XNRG CEO Jerry Mikolajczyk has no intention of giving up anytime soon and continues to spend countless hours working to make this company a success to the benefit of shareholders.

This is clearly demonstrated by the chart of current orders in play as of Dec 6th 2015 which shows 3 orders in play in which XOM reselling the product and 9 orders in play in which XOM is facilitating the transaction.

Once again this demonstrates the open nature of XNRG CEO Jerry Mikolajczyk to be transparent by answering shareholders questions openly and thus letting them know what is actually happening with the company.


THANK YOU JERRY!

XNRG