Xun Energy, Inc. (fka XNRG)

[PG]

If there was nothing produced at the time then there is nothing to report.

According to the offices at PA Dept of Environmental Protection, the records indicate that the lessee information is listed as Northeastern Consolidated Energy Partners, Inc., Jon Malis, President; 306 Prospect St Pittsburgh, PA, 15211 412.491.6660 NCEA is a small, few men operation so doesn't operate at the speed you would expect from big boys. These are the folk that are doing the actual drilling. Give Mr. Malis a call and confirm whether or not he is working on behalf of XUN. Perhaps he will be able to allay your concerns???

Since NCEA purchased many wells in northern PA in 2009 in the hopes of complete exploration in the forthcoming months utilizing capital that Malis raised up to that point, it is very possible that these wells were available for purchase by XUN due to NCEA not having the resources required to proceed. For whatever the reason. I don't know for certain yet and that very well could be the case. That doesn't preclude them from being able to complete the successfully...means they ran out of funds. And what a surprise in this economy, eh?

Whatever the case may be, nothing yet to suggest that XUN are not keeping to their word and that we should receive something very soon confirming production. If that should change however and I discover something is rotten, I will be glad to let you know.

According to XUN's own words, they acquired the wells late summer last year. There have been contingencies from the beginning as well as expected snags in any business venture. Any production that has occurred since January 2013 would not be required for production submission until January 2014 with the deadline being 8 February 2014 I believe. That is the law.

So, give the man a call and see if he can't answer any of your questions.

PORTLAND, OR--(Marketwire - Sep 19, 2012) - Xun Energy, Inc. ("XNRG")
(OTCQB: XNRG) announces the acquisition of 30 oil well locations in Venango
County, Pennsylvania from Vencedor Energy Partners (Assignor) on August 31,
2012. XNRG paid $585,000 in the form of 11,700,000 shares (Shares) of
common stock of the Company for the rights which allows XNRG to drill 30 oil
wells on 3 leaseholds on 611 acres.
XNRG will have 100% working interest in the wells with 82.5% Net Revenue
Interest (NRI) on the Rice and Lalley leaseholds and 80.0% NRI on the Corse
leasehold. The leaseholds are producing from the Venango first, Red Valley I,
Red Valley II and Venango Second geologic formations typically found around
800' to 1200'. These shallow wells will cost $167,000 per well on a turnkey
basis. Average production from existing wells on these leaseholds have ranged
from 3,000 to 5,000 barrels of oil over a 10 year period with an average of
1,500 barrels of oil per well in the first year. The Company, after it completes
its 30 well program, has an option to drill 15 more wells with NRI's of 80.0% to
82.5%.
The Company plans to drill before the end of November 2012 and hopes to
complete all 30 wells within the first 10 months of 2013, subject to securing
the financing for drilling the wells. If XNRG does not begin drilling the first well
before November 31, 2012, or commence drilling 3 more wells before January
31, 2012, then XNRG will forfeit its rights and the acquisition shall terminate
and unwind with the Assignor returning the Shares to XNRG.
"We are excited to acquire these low risk oil locations that are within producing
leaseholds," commented Jerry G. Mikolajczyk, President of the Company. He
further commented. "Our Initial Production (IP) is expected to be an average of
25 Barrels Oil Per Day (BOPD) per well during the first month and settling to 1
to 2 BOPD within 120 days for many years thereafter. The IP allows the
Company to recapture the majority of its capital cost within the first few
months of production. This will give XNRG a high return in a short time frame.
These are shallow wells that can start producing oil within 30 days of spotting
the rig

XNRG