Just to clarify postings from the Ihub, The oil and gas development in Pennsylvania was not the works since 2011. In 2011, the company was focused on oil and gas operations in Kentucky. This will be long, but hopefully will provide some insight to what happened between when the company began in oil and gas development until today. If you see anything that is incorrect or have additional information, please post.
Xun Energy has been in the oil and gas industry since December 9, 2010. However, they started in Kentucky, not Pennsylvania. It started with a letter of intent on December 9, 2010 with Global Energy Acquisitions LLC in which Xun Energy was to acquire 51% gross royalty in up to 500 producing oil and gas wells in Kentucky.
Check the 8-K here with the details of the deal: http://www.otcmarkets.com/edgar/GetFilingHtml...ID=7604157
This LOI (letter of intent) was terminated by Global Energy Acquisitions, LLC.
Check the 8-K here: http://www.otcmarkets.com/edgar/GetFilingHtml...ID=7696674
It is important to note here, that Jerry was not CEO of Xun yet, the current CEO was Peter Matousek. To verify this check this 8K: http://www.otcmarkets.com/edgar/GetFilingHtml...ID=7456126
Jerry was a consultant at this point. Jerry was appointed to CEO and CFO beginning June 1, 2011. As seen in this 8K: http://www.otcmarkets.com/edgar/GetFilingHtml...ID=7979735
Now, getting back to the oil and gas operations. On February 28, 2011 Xun Energy acquired three oil and gas leases in Kentucky. For ease of reference I will refer to the leases by last name of the property owner followed by lease. The lease names are the Tillet Lease, Grubb Lease, and Sequachee Lease. These leases were acquired through a subsidiary that Xun formed at some point named Nux Holdings of Kentucky, Inc.
8K for the acquisition of leases: http://www.otcmarkets.com/edgar/GetFilingHtml...ID=7777993
It is important to note in this 8K it reveals that Xun Energy had two subsidiaries, Nux Holdings of Kentucky and Xun Oil of Kentucky, Inc. both held under the trade name Xun Oil. This can be found at the bottom of the 8K cited above.
As referred to in my prior post, Xun completed a work over on a well, permit XUN001. They produced some oil and sold it before the well stopped producing.
Reference to my post here: http://investorshangout.com/post/view?id=1898016
Now comes the lawsuit. Quoted from the Xun Energy website under Corporate, History 2010-2011 the company explains the lawsuit and its implications:
“On May 10, 2011, the Company accepted an Offer to Purchase from Lea Kennedy d/b/a LuxemBarings (“Purchaser”) to purchase $10 million of the Company’s common stock based on the average of 5 consecutive trading day’s close prior to date of closing. The Offer to Purchase was scheduled to close on or before June 24, 2011. The Purchaser failed to complete the transaction, after mutually agreed extensions of the closing date. The failure of the Purchaser to complete the transaction caused damage to the Company. The Company ran out of cash and could not operate or maintain its oil and gas leases in Kentucky. As a result, the Company forfeited its oil and gas leases while attempting to raise capital to continue operations in Kentucky. The Company has retained legal counsel to take legal action against the Purchaser for failing to complete the purchase transaction and for damages to the Company as a result of the failure to complete the transaction.”
Here is some links to the lawsuit:
http://www.leagle.com/decision/In%20FDCO%2020120427B66
http://il.findacase.com/research/wfrmDocViewe...SIL.htm/qx
http://law.justia.com/cases/federal/district-...3/54986/75
Additionally, you will find that the lawsuit is referenced in the 10Q as well:
“On May 10, 2011, the Company accepted an Offer to Purchase from Lea Kennedy d/b/a LuxemBarings ( “ Purchaser ” ) to purchase $10 million of the Company ’ s common stock based on the average of 5 consecutive trading day ’ s close prior to date of closing. The Offer to Purchase was scheduled to close on or before June 24, 2011. The Purchaser failed to complete the transaction, after mutually agreed extensions of the closing date. The Company has retained legal counsel to take legal action against the Purchaser for failing to complete the purchase transaction and for damages to the Company as a result of the failure to complete the transaction.
On March 23, 2013 The United States District Court For The Southern District Of Illinois granted summary judgment on Xun Energy ’ s breach of contract claim against Lea Kennedy d/b/a/ LuxemBarings. The amount of damages remains an issue to be resolved in the case and the Company's "fraud in the inducement claim" alleged in its complaint remains pending.
On July, 8, 2013, the Company was awarded a judgment dismissing, without prejudice, the legal action between Xun Energy, Inc., as Plaintiff and Lea Kennedy, an individual, d/b/a LUXEMBARINGS, as Defendant. The Company filed for a voluntary dismissal without prejudice on the legal action.
The Company has recognized losses, at cost, in the financial statements for the period ended May 31, 2012 and legal costs for the period ending February 28, 2014.”
The case is mentioned multiple times in the 10Q, once under “Legal Proceedings,” and “Common Shares Purchase Litigation.”
On July 12, 2011 Xun Holdings of Kentucky, Inc. acquired another lease referred to, by me, as the Cash/Thomas lease.
8K here: http://www.otcmarkets.com/edgar/GetFilingHtml...ID=8039383
On January 20, 2012 Xun assigned its drilling permit for XUN002 for the Tillett lease to Cook Oil Company in exchange for a percentage of override royalties. It is important to note in this 8K, it states the word “Forfeited” before Tillett Lease.
8K here: http://www.otcmarkets.com/edgar/GetFilingHtml...ID=8349187
The last bit of information I can find about the Kentucky leases is on February 13, 2012 the company entered into an agreement to purchase from Altmann Revocable Living Trust, RLT 100% of all of its rights, title and interest in Common Votive Shares of Crockett Energy Corporation. Additionally, Xun obtained financing for this deal from Private Collateral Lenders Corp to purchase the company and develop the oil and gas leases.
8K here for agreement on Crockett Energy Corporation: http://www.otcmarkets.com/edgar/GetFilingHtml...ID=8414900
8K here for financing: http://www.otcmarkets.com/edgar/GetFilingHtml...ID=8424197
The agreement fell through because Xun Energy missed a payment on or before May 29, 2012 that terminated the agreement.
8K here: http://www.otcmarkets.com/edgar/GetFilingHtml...ID=8657502
Now onto Pennsylvania, Xun Energy acquired the Pennsylvania oil and gas agreement with Vencedor Energy Partners on September 19, 2012.
8K here: http://www.otcmarkets.com/edgar/GetFilingHtml...ID=8834229
This was followed by Xun releasing the powerpoint presentation for investors on December 20, 2012.
8K here: http://www.otcmarkets.com/edgar/GetFilingHtml...ID=8980866
Why am I posting this? Xun’s history is not as simple as they have not done anything since 2011 when they began oil and gas development. On the contrary, the company has been busy, and they are starting over after losing their operations in Kentucky.
Again, if anyone sees anything that is wrong or has additional information, please post.
Thanks.
Xun Energy has been in the oil and gas industry since December 9, 2010. However, they started in Kentucky, not Pennsylvania. It started with a letter of intent on December 9, 2010 with Global Energy Acquisitions LLC in which Xun Energy was to acquire 51% gross royalty in up to 500 producing oil and gas wells in Kentucky.
Check the 8-K here with the details of the deal: http://www.otcmarkets.com/edgar/GetFilingHtml...ID=7604157
This LOI (letter of intent) was terminated by Global Energy Acquisitions, LLC.
Check the 8-K here: http://www.otcmarkets.com/edgar/GetFilingHtml...ID=7696674
It is important to note here, that Jerry was not CEO of Xun yet, the current CEO was Peter Matousek. To verify this check this 8K: http://www.otcmarkets.com/edgar/GetFilingHtml...ID=7456126
Jerry was a consultant at this point. Jerry was appointed to CEO and CFO beginning June 1, 2011. As seen in this 8K: http://www.otcmarkets.com/edgar/GetFilingHtml...ID=7979735
Now, getting back to the oil and gas operations. On February 28, 2011 Xun Energy acquired three oil and gas leases in Kentucky. For ease of reference I will refer to the leases by last name of the property owner followed by lease. The lease names are the Tillet Lease, Grubb Lease, and Sequachee Lease. These leases were acquired through a subsidiary that Xun formed at some point named Nux Holdings of Kentucky, Inc.
8K for the acquisition of leases: http://www.otcmarkets.com/edgar/GetFilingHtml...ID=7777993
It is important to note in this 8K it reveals that Xun Energy had two subsidiaries, Nux Holdings of Kentucky and Xun Oil of Kentucky, Inc. both held under the trade name Xun Oil. This can be found at the bottom of the 8K cited above.
As referred to in my prior post, Xun completed a work over on a well, permit XUN001. They produced some oil and sold it before the well stopped producing.
Reference to my post here: http://investorshangout.com/post/view?id=1898016
Now comes the lawsuit. Quoted from the Xun Energy website under Corporate, History 2010-2011 the company explains the lawsuit and its implications:
“On May 10, 2011, the Company accepted an Offer to Purchase from Lea Kennedy d/b/a LuxemBarings (“Purchaser”) to purchase $10 million of the Company’s common stock based on the average of 5 consecutive trading day’s close prior to date of closing. The Offer to Purchase was scheduled to close on or before June 24, 2011. The Purchaser failed to complete the transaction, after mutually agreed extensions of the closing date. The failure of the Purchaser to complete the transaction caused damage to the Company. The Company ran out of cash and could not operate or maintain its oil and gas leases in Kentucky. As a result, the Company forfeited its oil and gas leases while attempting to raise capital to continue operations in Kentucky. The Company has retained legal counsel to take legal action against the Purchaser for failing to complete the purchase transaction and for damages to the Company as a result of the failure to complete the transaction.”
Here is some links to the lawsuit:
http://www.leagle.com/decision/In%20FDCO%2020120427B66
http://il.findacase.com/research/wfrmDocViewe...SIL.htm/qx
http://law.justia.com/cases/federal/district-...3/54986/75
Additionally, you will find that the lawsuit is referenced in the 10Q as well:
“On May 10, 2011, the Company accepted an Offer to Purchase from Lea Kennedy d/b/a LuxemBarings ( “ Purchaser ” ) to purchase $10 million of the Company ’ s common stock based on the average of 5 consecutive trading day ’ s close prior to date of closing. The Offer to Purchase was scheduled to close on or before June 24, 2011. The Purchaser failed to complete the transaction, after mutually agreed extensions of the closing date. The Company has retained legal counsel to take legal action against the Purchaser for failing to complete the purchase transaction and for damages to the Company as a result of the failure to complete the transaction.
On March 23, 2013 The United States District Court For The Southern District Of Illinois granted summary judgment on Xun Energy ’ s breach of contract claim against Lea Kennedy d/b/a/ LuxemBarings. The amount of damages remains an issue to be resolved in the case and the Company's "fraud in the inducement claim" alleged in its complaint remains pending.
On July, 8, 2013, the Company was awarded a judgment dismissing, without prejudice, the legal action between Xun Energy, Inc., as Plaintiff and Lea Kennedy, an individual, d/b/a LUXEMBARINGS, as Defendant. The Company filed for a voluntary dismissal without prejudice on the legal action.
The Company has recognized losses, at cost, in the financial statements for the period ended May 31, 2012 and legal costs for the period ending February 28, 2014.”
The case is mentioned multiple times in the 10Q, once under “Legal Proceedings,” and “Common Shares Purchase Litigation.”
On July 12, 2011 Xun Holdings of Kentucky, Inc. acquired another lease referred to, by me, as the Cash/Thomas lease.
8K here: http://www.otcmarkets.com/edgar/GetFilingHtml...ID=8039383
On January 20, 2012 Xun assigned its drilling permit for XUN002 for the Tillett lease to Cook Oil Company in exchange for a percentage of override royalties. It is important to note in this 8K, it states the word “Forfeited” before Tillett Lease.
8K here: http://www.otcmarkets.com/edgar/GetFilingHtml...ID=8349187
The last bit of information I can find about the Kentucky leases is on February 13, 2012 the company entered into an agreement to purchase from Altmann Revocable Living Trust, RLT 100% of all of its rights, title and interest in Common Votive Shares of Crockett Energy Corporation. Additionally, Xun obtained financing for this deal from Private Collateral Lenders Corp to purchase the company and develop the oil and gas leases.
8K here for agreement on Crockett Energy Corporation: http://www.otcmarkets.com/edgar/GetFilingHtml...ID=8414900
8K here for financing: http://www.otcmarkets.com/edgar/GetFilingHtml...ID=8424197
The agreement fell through because Xun Energy missed a payment on or before May 29, 2012 that terminated the agreement.
8K here: http://www.otcmarkets.com/edgar/GetFilingHtml...ID=8657502
Now onto Pennsylvania, Xun Energy acquired the Pennsylvania oil and gas agreement with Vencedor Energy Partners on September 19, 2012.
8K here: http://www.otcmarkets.com/edgar/GetFilingHtml...ID=8834229
This was followed by Xun releasing the powerpoint presentation for investors on December 20, 2012.
8K here: http://www.otcmarkets.com/edgar/GetFilingHtml...ID=8980866
Why am I posting this? Xun’s history is not as simple as they have not done anything since 2011 when they began oil and gas development. On the contrary, the company has been busy, and they are starting over after losing their operations in Kentucky.
Again, if anyone sees anything that is wrong or has additional information, please post.
Thanks.
Xun Energy Inc. (XNRG) Stock Research Links
The fault-finder will find faults even in paradise. -Henry David Thoreau
