#2
Quote:Thank you MARCO POLO III for your post and questions in Post #1 above. We apologize for the delay in responding back to you due to internal technical issues with the back office of the Forum software. This has been rectified.
We have replicated your post below:
"The SPA is subject to XOM obtaining financing for 100% of the 8,450,000 metric ton SPA."
This basically saying XUN/XOM is responsible for 100% financing? And is this going to be done? XUN had difficulties getting financing in the past. How likely are we to get 100%. Do we even have a a shot at getting 100% financing. (DISCLAIMERS)
Question #1: This basically saying XUN/XOM is responsible for 100% financing?
Response #1: Referring to the JV003 Profit Sharing Agreement, XOM is responsible for sourcing the remaining 80% financing of the purchase of the jet fuel. XOM is not responsible for providing the funds, only sourcing the funding needed to fund the remaining purchase which may be other Profit Sharing counterparties.
Question #2: And is this going to be done?
Response #2: The Company is in discussions with various financiers who have shown interest in funding the remaining 80%. We cannot speculate on the success of obtaining the financing needed for the remaining 80%.
Question #3: XUN had difficulties getting financing in the past. How likely are we to get 100%.
Response #3: The physical commodity trading division is independent of the oil and gas operations and should be viewed as a standalone profit centre which do not correlate with each other. The rate of return and the associated risks are completely different and unrelated. We cannot speculate on the success of obtaining the financing needed for the remaining 80% financing for JV003.
Question #4: Do we even have a a shot at getting 100% financing. (DISCLAIMERS)
Response #4: The Company is in discussions with various financiers who have shown interest in funding the remaining 80%. We cannot speculate on the success of obtaining the financing needed for the remaining 80%.
THERE CAN BE NO ASSURANCE THAT JV003 WILL BE ABLE TO OBTAIN THE REMAINING 80% FINANCING REQUIRED TO PURCHASE THE 8.54 MILLION METRIC TONS OF AVIATION JET FUEL. THERE CAN BE NO ASSURANCE THAT JV003 WILL BE ABLE TO SELL THE AVIATION JET FUEL SHOULD IT BE SUCCESSFUL IN OBTAINING FINANCING FOR THE AVIATION JET FUEL. EVEN IF JV003 WAS SUCCESSFUL IN SELLING THE AVIATION JET FUEL, THERE CAN BE NO ASSURANCE THAT THE SALE OF THE AVIATION JET FUEL WILL BE PROFITABLE OR THAT THE COMPANY WILL BE ABLE TO GENERATE SUFFICIENT REVENUES TO OPERATE PROFITABLY.
We thank you for your interest, support and faith in the Company.
Respectfully,
Xun Energy, Inc.
Jerry G. Mikolajczyk
President and CEO
