Xun Energy, Inc. has entered into Letters of Intent for the acquisition of oil and gas leases in Texas,
named the Falls Project.
The Falls Project consists of 24 oil and gas leases, currently generating over $75,000 per month in
net profits, covering 2,680.37 acres with proven oil reserves, net 542,300 barrels of oil in the state
of Texas.
In addition to the acquisition of the properties the Company plans to develop 23 new oil wells and
workovers on 6 existing wells.
The Falls Project is currently producing 45 to 55 Barrels of Oil Per Day (BOPD) with an average
netback of 60%, based on $95 oil, currently generating gross revenue of $130,000 per month. The
completion of the 23 well drilling program and a workover program on 6 shut in oil wells projects
the daily production to peak at a settled in rate of 130 to 140 BOPD in 2015, an increase of 300%
over current BOPD, resulting in additional gross revenue of $269,000 per month on a decline curve
of 8.1% per year. The 23 new oil wells will be drilled and completed over 14 months. The current
lease operators, with combined 22 years of experience, will continue to operate and develop the oil
and gas leases for the Company.
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