#6 (Regarding the Falls project noted in the 10Q):
Post# of 2009
Quote:
Thank you fischerman1940 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:
Hello,
I was wondering if you could clarify a passage from the quarterly report.
Per the Quarterly report under Assets and Liabilities:
“Our primary financial resource is our base of unproven oil and gas leases. Our ability to fund our capital expenditure program is dependent upon the availability of capital resource financing. In this fiscal year, we planned on spending approximately $9,000,000 in new capital investments for the purchase of the Texas Falls oil and gas leases and the drilling of 23 new oil and gas wells on these leases. Factors such as changes in operating margins due to changes in the price of oil and gas and the availability of capital resources-- could increase or decrease our ultimate level of expenditures during the remaining fiscal year.”
Does this mean that there is a high likelihood the Falls Project loan will be approved and the Falls Project purchased in this fiscal year?
Thank You.
Question #1: Does this mean that there is a high likelihood the Falls Project loan will be approved and the Falls Project purchased in this fiscal year?
Response #1: The Company is in discussions with lenders and investors to close on the Texas Falls oil and gas leases and cannot speculate on the success of closing. 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.
We thank you for your interest, support and faith in the Company.
Respectfully,
Xun Energy, Inc.
Jerry G. Mikolajczyk
President and CEO