Replies to post #36806 on Xun Energy, Inc. (fka XNRG)

[4on4off]

Response to Texas Falls Project question by XNRG CEO Jerry Mikolajczyk.

Question #1: Sir, can we shareholders get an update on the Falls Project? It seems that the deal should have completed before the end of 2014. Is it still a "go"?

Response #1: The Texas Falls project has temporally stalled out. With the price of WTI dropping constantly over the last several months all parties, including the Company, pulled back and is taking a wait and see approach. The Texas Falls project will be revisited once the WTI price stabilizes. Oil and Gas lease valuations are based on production, net cash flow from the production and proven reserves. With WTI coming down, the valuation for the Texas Falls Project has dropped considerably and is not in tune with the asking price by the Sellers of the Texas Falls Project. Banks finance based on valuation and cash flow. If the purchase price is greater than the valuation, the Company has to cover the difference. Currently the Company is not in the position to fund the difference.

THERE ARE NO ASSURANCES THAT THE COMPANY WILL CLOSE ON THE TEXAS FALLS OIL AND GAS LEASES AND IF THE COMPANY DOES CLOSE ON THE TEXAS FALLS OIL AND GAS LEASES, THERE ARE NO ASSURANCES THAT THE TEXAS FALLS OIL AND GAS LEASES WILL BE PROFITABLE.

Question #2: Will the company commence with purchasing and drilling in Texas as noted and very much anticipated?

Response #2: With the current price of WTI, there are some great offers that have surfaced as a result of the lower WTI price. As stated earlier, oil and gas lease valuations are based on production, net cash flow from the production and proven reserves. With lower WTI prices, an oil and gas lease is now valued at 30% to 60% lower than what they were valued at a year ago!! Some oil and gas leases that were economical a year ago are not economical today with WTI price being lower than the production costs.

Texas is a target zone for acquisitions of oil and gas leases. Our current focus is on the physical commodity trades in the Xun Oil Marketing Division to generate cash flow for the Company. While this is happening, we are constantly evaluating oil and gas projects as they are presented to us.

DISCLAIMER: SUBJECT TO SAFE HARBOR CLAUSE.

We thank you for your support and faith in the Company and its management.

Respectfully,

XUN ENERGY, INC.
Jerry G. Mikolajczyk
President and CEO

[Cassandra]

Based on the latest shareholder report, the 791,000,000 shares issued to ECVI has not been deposited with the brokerage firm and remains in street name.

Does Jerry not understand that shares aren't held in "street name" until they are deposited with a broker? All street name shares are held by the broker and shown as being owned by the DTC nominee of Cede & Company. Is Jerry trying to deceive shareholders?

Once shares are held in street name, the only way to discern who owns them is to order a NOBO list from Broadridge Financial Solutions.

Also, the "safety net" price at which ECVI can sell would be below where the stock trades, which for the last several months of no-bid status, would below be below $.0001.

A "safety net" is a safeguard from a fall such as used for an aerial acrobat. Placing the net above the acrobat or above the price a stock could be sold would not make it a safety net. Additionally, since Jerry is personally the recipient of a substantial percentage of the $2+ MM in "debt" sold to ECVI, he certainly wants ECVI to be able to sell the shares so he can receive his bounty.

Because the CPNs are being converted at $.00005, ECVI may be the occasional seller at $.00001. It's also possible that the CPN conversion rates have been adjusted down.

In order to move the billions of XNRG shares to be issued to ECVI for the Section 3(a)(10) debt conversion and the CPN holders, a reverse split is likely going to be necessary given the unyielding no-bid status.

[4on4off]

Another reply from XNRG CEO Jerry Mikolajczyk to a shareholder

I find this response that follows to be interesting as it once again outlines the intricacies involved with international transactions as they relate to physical commodity trades. XNRG CEO Jerry Mikolajczyk touches on the these hurdles as well as the potential at stake that makes each endeavor worthwhile.

Good Afternoon Jerry,

I, as well as many other XNRG Shareholder's appreciate your candor.

You are correct, as much Shareholder's agree that any forward looking response "...would need to be followed by disclaimers which no one likes to read.", we look forward to your honesty, sincerity and directness.

At the risk of speaking for other XNRG Forum members and shareholders, I believe it is important to signify that, based on XNRG Collective efforts, when a Physical Trade Marketing Division does occur, it will represent the end of one complicated process that will evolve into more opportunities which will become more recognizable and predictable.

Perhaps by 12.2015, the XNRG Analogy will be more reminiscent of a U.S. Aircraft Carrier where most Physical Commodity Trades Take Off and Land as predicted and appreciated with only a few having to miss the landing zone requiring another fly-by.

Stay Well Jerry and Tank you once again,

BJBV-JOECROWE789

COMMENTARY: Thank you for your kind words of appreciation and recognizing the complexities of a physical commodity trade!!

The physical commodity trade is simple in form, i.e. buy to take title and sell at the maximum price possible. As simple as it sounds, we are dealing with brokers/intermediaries on the buy side and then again on the sell side. Each side holds their cards close to the chest to protect their clients and their source of income. Circumvention and misrepresentations plaque the industry.

What makes a physical commodity trade complex is our business model is purchasing the products from foreign countries or companies located in foreign jurisdictions and trading at Rotterdam, the centre for petroleum physical commodity trades. Rotterdam for physical commodity trades is like Chicago for commodity market exchanges or New York Wall street for the New Stock Exchange. It would be so much simpler if the products were purchased and sold in the USA. However, the margins are considerably less and the market is difficult to penetrate.

We affirm with you that once we close on our first physical commodity trade, the view and image of the Company will change. If we close on one aviation jet fuel contract, typically 61 million barrels over a 13 month period (trial lift of 1 million barrels first month plus 12 X 5 million barrels per month), the magnitude of the transaction should put the Company on the map and in the radar!! On January 30, 2015, aviation jet fuel closed at USD$66 per barrel at Rotterdam, link: www.iata.org/publications/economics/fuel-monitor/Pages/price-analysis.aspx. Based on an average price of USD$66 per barrel, a 61 million barrel contract, gross revenue would be USD$4 Billion +- over the 13 month contract period. The Company's expected margins from one of these aviation jet fuel contracts could exceed the margins from over 615 Rice #15 oils wells based on fiscal 2015 first quarter gross profits annualized!!

Perhaps by 12.2015, your XNRG Analogy of being reminiscent of a U.S. Aircraft Carrier where most Physical Commodity Trades Take Off and Land as predicted and appreciated with only a few having to miss the landing zone requiring another fly-by, comes to realization. The Company is committed and working to achieve this success!!

THERE CAN BE NO ASSURANCE THAT THE COMPANY WILL CLOSE ON ANY PHYSICAL COMMODITY TRADE. EVEN IF THE COMPANY WAS SUCCESSFUL IN CLOSING ON A PHYSICAL COMMODITY TRADE, THERE CAN BE NO ASSURANCE THAT THE PHYSICAL COMMODITY TRADE 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 support and faith in the Company and its management.

Respectfully,

XUN ENERGY, INC.
Jerry G. Mikolajczyk
President and CEO

[Huggy Bear]

The Company requested to have the Safety Net Price in the stipulation to protect the shareholders from undue pressure and to prevent shorting of stock.

Prevent shorting of a .0001 no bid stock. That is plain hilarious.

This scam is so obvious to see thru, along with the faux excitement over the Big Business which does not exist in reality.