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You have a pile of facts here, with questions behind everyone of them. Have you taken the time to call Jerry. That's what I do when I have questions. If you need his number I will get it for you.
Agree 100% with you. The fact that the were able to put these safeguards in place before it cost them financially is huge. We were all disappointed with the failure of the JV002 but in reality it was the best thing that could of happened. Its going to take time but they are definitely heading in the right direction.
Good point and its also good to know XUN has more than one means of financial backing to get things done. Its all good!
Thank you! Was no doubting you, just wanted to prove a point.
We have investors that will make this happen. That makes my investment look pretty darn good.
I do believe the 15B is still there to be used. So what exactly are you saying. Do you know of more investors?
It depends on your investment purpose. When I invested in this in May of last year it was all about Rice #15. Thought I would take a short term try at this. This has definitely become much more than that. Now I look at the potential of this and it has become a long term investment for me. I for one believe Jerry will strike that first deal soon and I am willing to wait until he does.
The important thing is they have the financing for SPA's. Once first JV deal is complete the will have 8M+ in their account and we all will be happy. Its Happy Hour, got to go!
No matter how one interprets the $15B, it is there for JV deals going on now and in the future. This is a very positive thing for XUN to have this financing in place.
It is for the purpose of financing SPA's.
Im not sure if one would call it a line of credit, but from the post I just made:
Xun Investor transferred US$15 Billion to HSBC-Hong Kong on July 31, 2014 for the purpose of JV002 to complete SPA1 and additional SPA's.
I would say this is proof XUN has financing for additional SPA's.
Just thought I would help out, this is straight from the forum.
XUN, through its connections, negotiated funding with an arm's length funder (XUN Investor) for the funder to provide, at minimum, the US$400,000,000 Bank Comfort Letter that was required by IEL to provide to FILKAS to continue with the SPA1. Xun Investor transferred US$15 Billion to HSBC-Hong Kong on July 31, 2014 for the purpose of JV002 to complete SPA1 and additional SPA's and provided confirmation of the US$15 Billion on August 1, 2014 to JV002. Refer to IEL's letter to FILKAS dated August 1, 2014, link: http://www.idriaenergy.com/files/101537290.pdf transmitting a copy of the Proof Of Funds (POF) to FILKAS.
That post shows both potential profit and potential loss. From the question below Jerry has showed that he has put safeguards and procedures in place to protect from losses.
Good afternoon Jerry. On Feb 25th you made this comment "Whether or not successful with these early ventures, the cost to the Company was minimal and it gained invaluable experience, and ultimately settle on a set of procedures and affiliations that would lead to success."
From this first JV deal have you developed any safeguards or procedures to follow for the JV deals of the future? Thanks Spiceman
Question #1: From this first JV deal have you developed any safeguards or procedures to follow for the JV deals of the future?
Response #1: Yes, we have developed safeguards, checkpoints and policies to mitigate risk to the Company, its shareholders and it's financiers.
The Company management team spent countless hours working with Idria Energy, Inc. et al (IEI) from reviewing the historical documents pre JV002 to SPA2 review, editing and compilation of the various contracts. Once SPA2 was agreed to and executed by the counterparties, the Company was involved in working with IEl to administer the SPA2 and the Charter Party Agreement.
One of the most important takeaway that we were blessed with is that the failure by the Filkas to perform saved the Joint Venture millions of dollars in losses as a result of the falling market price of crude oil and the correlating market price for aviation jet fuel. SPA2 was based on a fixed gross price of US$84.00 per barrel for a total contract cost of US$5,124,000,000. SPA2 did not have an "evergreen clause" or "stop gap" clause that would have mitigated losses from market price declines. At the time, aviation jet fuel was stable in pricing for the last 3 years and the market collapse for crude oil was not expected. As you can you in the chart below, the last time aviation jet fuel was below US$84 was in fall of 2010.
Our take away from this blessing in disguise is that all fixed rate SPA's must have an evergreen clause (trigger and mechanics to renegotiate the purchase price) or a stop gap price should the market fall below the stop gap price.
The alternative to an evergreen clause or stop gap pricing is to negotiate the SPA on a indexed pricing system. Aviation Jet Fuel is predominately purchased by the Majors on a discount or premium to an Index such as Platts or Argus indices. i.e. Rotterdam falls under the North West Europe (NWE) Platts index or Argus European Products (AEP) index. These reports are published daily based on the prior market days activities. By negotiating a purchase price based on an index, the purchase cost would float to the market price swings and correspondingly, when an Aviation Jet Fuel SPA is entered into with a Major, the sales price is indexed. The gross profit (loss) would be the delta between the indexed purchase price and the indexed selling price. Our obvious goal is to negotiate a larger discount on the price of the aviation jet fuel and a lesser discount or a premium to the index price on the sales side, hence a gross profit. Market conditions at the time of negotiations will affect the establishment of the purchase price and then when the product is sold, the discount or premium negotiated with the Major (exit buyer).
Other takeaways learnt from the JV002 experience include but not limited to (some takeaways are competitive in nature and cannot be disclosed):
• Exhaustive due diligence on the supplier.
• Negotiate out any front end fees, usually red flags for scams.
• Immediate due diligence on all shipping documents including confirmations with the vessel owner and operator.
• Less reliance on the broker chain.
The physical commodity trade business is a large and lucrative industry and success in this market will depend greatly on establishing relationships with reputable suppliers and exit buyers. There are a lot of scammers (fraud) in the industry, some of which are very sophisticated, as the case is, allegedly with FILKAS. There are no assurances that the Company, even after learning from JV002 and others over the past several months, that we may not be scammed. Our goal, based on our takeaways, is to mitigate any possible losses from potential scams or fraud. As a professional forensic auditor, I have found many fraudulent transactions, over my career, occurring in seasoned, well developed companies purported by their own employees, contractors and suppliers. A company can only mitigate its exposure by establishing proper internal controls, policies and procedures.
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
After reading the posts on the forum the last two days, I will admit this is one crazy adventure we have invested into. Hopefully all investors have actually took the time to read what is going on. Myself as long as everyone else is concerned with the 10-Q, why has it not been posted. The majority of the JV deals started during the quarter ending Nov 30 2014. Most of these deals are still active but some have hit road blocks as described in the Safety Clause, that everyone spends a lot of time making fun of. Reporting a 10-Q 90 days after the quarter is the standard, but yet updates need to be added to that 10-Q. As investors we need to look at the number of JV deals that are in progress and take the time to figure out what is really going on with each one. Jerry explained each one in detail and as he said in one post he is learning with every transaction he makes. I for one admire what he is doing. In my opinion he lands the first deal and has his structure built, he will be CEO of the year.
Got to go to work now, everyone enjoy the Rising XUN!
If 30 days falls on weekend or holiday it can be filed on next business day.
Maybe he should just walk as far as he can and swim the rest of the way. Facts is he is going, who gives a damn what airport or airline he takes.
Everybody keeps bringing this up. I will challenge all of you. Go to OTC Markets bring up any penny stock or any other stock and read there 10-Q's or 10-K's. After you do so come back and tell me Jerry invented that clause. Every company that trades says the same thing - THERE ARE NO GUARENTEES!
I agree with part of what you are saying, same old BS day in and day out. It is quite obvious that Jerry is not going to post some hopes and dreams post to make people buy this stock. He has a plan, in which we all can speculate our opinions on, that he will not deviate from. It seems to be ok with some investors and not with others. Yes we are definitely getting close to the bottom of the barrel as far as fuel prices go. ( Although I do believe in the 70's the government put a low barrel benchmark price of $21 dollars a barrel, not there yet!) If you have read the deal that XOM is waiting payment on, Jerry stated that there was no financial burden to the company, thus when it goes through it is all profit. Yes there are debts to be paid, but these kind of
deals even at these oil prices with no financial burden there is a a lot of money to be made.
Well things are getting pretty simple now. As an investor you believe what Jerry is saying or you don't. The past is the past, the future is the future, you either jump on the big business ship now or you float along in your canoe. Life is all about choices, I am very confident about my choice! Go XNRG!
Gekko 5 trading days to go this year. I honestly believe we have not heard Jerry's last words of the year yet. Hang in there this is about to take off. Merry Christmas And Happy New Year to you to!
Exactly what does anything you just posted have to do with the fact that Rice #15 is still producing oil and generating revenue?
Fact it is producing oil and producing revenue. If it was not it would be the obligation of the company to let shareholders know.
I can answer 1 of the 2 questions for you tower. Rice #15 is still producing revenue for XNRG. How do I know that? Rice #15 is the only source of income from financials. If it was not producing income for the company they would have to report that. As far as the JV deals time will tell. Just a thought, if you bought oil 2 months ago at market cost of $100/barrel with a profit margin of $10.00/barrel would you sell it today at $60.00 for a net loss of $40.00/barrel. I wouldn't. Not saying that is what is going on but it may have a lot to do with what is going on. Like I say time will tell.
To all members here that believe in MNGG including our leader CEO Joel, looks to me like we are going to have a very Merry Christmas.
Thank You!
Happy Thanksgiving to you. Don't matter what anybody's opinion is we need to be thankful for what we have and hope for the best outcome for what we believe in.
So you are saying OPEC has no influence on market price of oil.
WOW learn something new everyday.
I must say Gotgame, things are looking better everyday! Go XNRG
Me to, XNRG owed them, just wonder what they owe XNRG. Time will tell.
Thanks Igotgame, appreciate the info you bring to the boards. Believe we will be ok when all is said and done. XNRG!
My point is how do any of us know that's what's going to happen. Its not over till its over till its over. True in contract form XNRG owes this company for services done, but in same contract what does this company owe XNRG. We don't know the whole story.
Went through this five decimal point trading glich on another stock yesterday, all was back to normal today. In the words of Aaron Rodgers " RELAX ".Not possible for stocks to be traded by public under .0000. Looks like there are a lot of lawyers on this board. Everyone has this all figured out. I for one don't understand the whole lawsuit deal and until I see the outcome of it,I wont. This was in layman terms a "fairness trial" the plaintiff owed the defendant and the defendant owed the plaintiff. They came to terms the defendant has to pay his share and the plaintiff has to pay his share. Who has to pay what, and what services have to be completed is yet to be seen. Now it seems everyone is focused on Kerry and what was said, who cares. As investors the focus needs to be on what is going to generate revenue, and what revenue may come from court decision. I for one have no clue of what will happen next but I am willing to stick it out to find out. JUST MY OPINION!
MNGG #1 on break out boards. I would truly and honestly like to thanks ALL posters on this board for making this stock not only what it is today but what it is going to be in the future. Thank all of you for your efforts. GO MNGG!
Hey Crazy, I posted on XNRG forum today requesting for Jerry to explain both contracts in further detail. I agree with you this is going to be a very huge deal for all of us.
Yes on a couple of occasions I have posted Jerry's emails on other board. They were questions from myself and others on that board, I told Jerry that and asked if I could post them. He was aware of what was going on. Townie and I discussed Q&A here last night. I suggested using website forum for questions and posting questions and answers here. I base my DD from facts and question Jerry when I have concerns.
I know Jerry has Q&A set up on forum on their website. Any questions can be posted there and all responses can be copied and posted here.