Some other points I picked out of the 10-K that no one has mentioned yet:
1. “On May 1, 2014, the Company entered into a twelve month Investor Relations and Marketing Agreement (IRMA) for $365,000 with a third party payable in cash. The IRMA requires the fees to be pre-paid prior to services rendered. The Company has been invoiced for the pre-payment and recorded the invoice in our accounts payable and recorded the expense as a prepaid charge which will be amortized as the work is completed. The Company may terminate the IRMA without penalties or damages and is only liable for work completed by the Consultant. As of May 31, 2014, the Consultant has not commenced work on the IRMA.”
2. In the stock issuances, there were 600,000 series B common stock sold. In the description, this was not put towards any CPNs or executive compensation. Additionally, these shares went to Jerry.
This is also important to the debate about the Xun Energy Forum:
“Our website has a section named Xun Forum. The Company will use the Xun Forum as a media to update our shareholders with events or activities of the Company that does not warrant a press release. The link to our Xun Forum is: http://forum.xunenergy.com/.”
I like this part “In the fall of 2013, Mr. Mikolajczyk was approached by active and committed buyers to assist them in sourcing and procuring refined petroleum products in new markets . Since Mr. Mikolajczyk's experience in this area of petroleum and metals marketing is significant, the Company formed a division, headed by Mr. Mikolajczyk to capitalize on opportunities in procurement services for active buyers.”
Jerry was approached by buyers, that is important to this deal, it was not Xun looking for potential clients. Looking into a division when you already have potential clients lined up is encouraging.
I am not sure if I missed it in the 10-K or not, but I did not see anything on how they are going to finance the potential joint venture for the sale of the jet fuel. Xun Energy is to be a 50% partner, meaning they have to put up 50% of the capital necessary. Did anyone see anything about how are they going to finance this?
This kind of made me uneasy: “We have sufficient cash and liquid assets to cover auditors, attorneys, transfer agent, EDGAR filer and limited travel expenses for the next six months. After such time, the Company would be forced to cease operations.”
I understand this is a blanket statement. However, I checked last year’s 10-K and they did not give a definite timeline of so many months before ceasing operations. Does anyone think this is something to be worried about?
Don’t get me wrong, I think there is a lot of potential here between management and the new business prospects, I am concerned where the funding will come from. In the past, financing has been a problem and no funding came through for the Venango wells or the Falls project to date. Additionally, the net proceeds of Rice well #15, less 15% for expenses, are going towards re-paying the secured loan and coupon agreements.
If I am missing anything or am incorrect in what I said, please post.
Thanks
1. “On May 1, 2014, the Company entered into a twelve month Investor Relations and Marketing Agreement (IRMA) for $365,000 with a third party payable in cash. The IRMA requires the fees to be pre-paid prior to services rendered. The Company has been invoiced for the pre-payment and recorded the invoice in our accounts payable and recorded the expense as a prepaid charge which will be amortized as the work is completed. The Company may terminate the IRMA without penalties or damages and is only liable for work completed by the Consultant. As of May 31, 2014, the Consultant has not commenced work on the IRMA.”
2. In the stock issuances, there were 600,000 series B common stock sold. In the description, this was not put towards any CPNs or executive compensation. Additionally, these shares went to Jerry.
This is also important to the debate about the Xun Energy Forum:
“Our website has a section named Xun Forum. The Company will use the Xun Forum as a media to update our shareholders with events or activities of the Company that does not warrant a press release. The link to our Xun Forum is: http://forum.xunenergy.com/.”
I like this part “In the fall of 2013, Mr. Mikolajczyk was approached by active and committed buyers to assist them in sourcing and procuring refined petroleum products in new markets . Since Mr. Mikolajczyk's experience in this area of petroleum and metals marketing is significant, the Company formed a division, headed by Mr. Mikolajczyk to capitalize on opportunities in procurement services for active buyers.”
Jerry was approached by buyers, that is important to this deal, it was not Xun looking for potential clients. Looking into a division when you already have potential clients lined up is encouraging.
I am not sure if I missed it in the 10-K or not, but I did not see anything on how they are going to finance the potential joint venture for the sale of the jet fuel. Xun Energy is to be a 50% partner, meaning they have to put up 50% of the capital necessary. Did anyone see anything about how are they going to finance this?
This kind of made me uneasy: “We have sufficient cash and liquid assets to cover auditors, attorneys, transfer agent, EDGAR filer and limited travel expenses for the next six months. After such time, the Company would be forced to cease operations.”
I understand this is a blanket statement. However, I checked last year’s 10-K and they did not give a definite timeline of so many months before ceasing operations. Does anyone think this is something to be worried about?
Don’t get me wrong, I think there is a lot of potential here between management and the new business prospects, I am concerned where the funding will come from. In the past, financing has been a problem and no funding came through for the Venango wells or the Falls project to date. Additionally, the net proceeds of Rice well #15, less 15% for expenses, are going towards re-paying the secured loan and coupon agreements.
If I am missing anything or am incorrect in what I said, please post.
Thanks
Xun Energy Inc. (XNRG) Stock Research Links
The fault-finder will find faults even in paradise. -Henry David Thoreau
