Xun Energy, Inc. (fka XNRG)

[MaxDaniel]

XNRG - Thanks for the effort and hard work from CMR.

Thank you PG for your post above and the question in Post #1. We have replicated your post below:

Good Morning, Jerry, et al,

According to PA DEP, Northeastern Consolidated Energy is listed as the lessee for each of the Rice well permits. Would you be so kind as to clarify for present & future shareholders the connection between Northeastern Consolidated Energy & XUN inasmuch why they are noted as the responsible party and not XUN? I understand how the process works in terms of owners leasing out for the purpose of drilling. However, if you could shed some light on the subject it may prove a great benefit for all parties.

Thank you in advance for your time.

Regards,
PG

Question: Would you be so kind as to clarify for present & future shareholders the connection between Northeastern Consolidated Energy & XUN inasmuch why they are noted as the responsible party and not XUN?

Response: In regard to the “lessee” question, we believe that is erroneous to begin with. Northeastern Consolidated Energy Partners, Inc. (NCEP) is a “permitee” on the permits. Not the lessee. If there are DEP records with NCEP listed as a “lessee” in regard to the Rice lease, we are not aware of those documents, and we ask that some form of documentation supporting this statement be provided to us so that we may get this miss-statement corrected.

In regard to the relationship among the principals, Vencedor Energy Partners (VEP) acquired the locations by assignment from the leaseholder prior to engaging with the Company. Per VEP’s contract with NCEP, NCEP will operate the first 5 wells on the Rice lease that VEP is developing for the Company until such time VEP assumes that responsibility and role. This was all disclosed to the Company in advance of the project and the Company is protected with the Assignment Agreement between VEP and the Company as well as the Operating Agreement between VEP and the Company. All future wells in this project will be permitted and bonded by VEP.

VEP is the project manager and eventual operator of record for the Venango 45 oil well development project and works in tandem with NCEP, the Company, and all other relevant parties to bring the project from opening negotiations to subsequent field production and potentially to a successful project for all involved.

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

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