Hello, XNRG, I am going to post some of the rec
Post# of 2009
I am going to post some of the recent messages from the Xun forum here on investorshangout for easy reference.
These are in no particular order. As mentioned several times, please do not hesitate to post your questions or concerns to the forum. We will work diligently to ensure they are addressed once approved.
Regards,
Kerry
Quote:
Thank you JOECROWE789 for your Post #16 above.
We have replicated your post below:
Good Afternoon Jerry,
I, as well as many other XNRG Shareholder's appreciate your candor.
You are correct, as much Shareholder's agree that any forward looking response "...would need to be followed by disclaimers which no one likes to read.", we look forward to your honesty, sincerity and directness.
At the risk of speaking for other XNRG Forum members and shareholders, I believe it is important to signify that, based on XNRG Collective efforts, when a Physical Trade Marketing Division does occur, it will represent the end of one complicated process that will evolve into more opportunities which will become more recognizable and predictable.
Perhaps by 12.2015, the XNRG Analogy will be more reminiscent of a U.S. Aircraft Carrier where most Physical Commodity Trades Take Off and Land as predicted and appreciated with only a few having to miss the landing zone requiring another fly-by.
Stay Well Jerry and Tank you once again,
BJBV-JOECROWE789
______________________________________________________
COMMENTARY: Thank you for your kind words of appreciation and recognizing the complexities of a physical commodity trade!!
The physical commodity trade is simple in form, i.e. buy to take title and sell at the maximum price possible. As simple as it sounds, we are dealing with brokers/intermediaries on the buy side and then again on the sell side. Each side holds their cards close to the chest to protect their clients and their source of income. Circumvention and misrepresentations plaque the industry.
What makes a physical commodity trade complex is our business model is purchasing the products from foreign countries or companies located in foreign jurisdictions and trading at Rotterdam, the centre for petroleum physical commodity trades. Rotterdam for physical commodity trades is like Chicago for commodity market exchanges or New York Wall street for the New Stock Exchange. It would be so much simpler if the products were purchased and sold in the USA. However, the margins are considerably less and the market is difficult to penetrate.
We affirm with you that once we close on our first physical commodity trade, the view and image of the Company will change. If we close on one aviation jet fuel contract, typically 61 million barrels over a 13 month period (trial lift of 1 million barrels first month plus 12 X 5 million barrels per month), the magnitude of the transaction should put the Company on the map and in the radar!! On January 30, 2015, aviation jet fuel closed at USD$66 per barrel at Rotterdam, link: http://www.iata.org/publications/economics/fu...lysis.aspx. Based on an average price of USD$66 per barrel, a 61 million barrel contract, gross revenue would be USD$4 Billion +- over the 13 month contract period. The Company's expected margins from one of these aviation jet fuel contracts could exceed the margins from over 615 Rice #15 oils wells based on fiscal 2015 first quarter gross profits annualized!!
Perhaps by 12.2015, your XNRG Analogy of being reminiscent of a U.S. Aircraft Carrier where most Physical Commodity Trades Take Off and Land as predicted and appreciated with only a few having to miss the landing zone requiring another fly-by, comes to realization. The Company is committed and working to achieve this success!!
THERE CAN BE NO ASSURANCE THAT THE COMPANY WILL CLOSE ON ANY PHYSICAL COMMODITY TRADE. EVEN IF THE COMPANY WAS SUCCESSFUL IN CLOSING ON A PHYSICAL COMMODITY TRADE, THERE CAN BE NO ASSURANCE THAT THE PHYSICAL COMMODITY TRADE WILL BE PROFITABLE OR THAT THE COMPANY WILL BE ABLE TO GENERATE SUFFICIENT REVENUES TO OPERATE PROFITABLY.
DISCLAIMER: SUBJECT TO SAFE HARBOR CLAUSE.
We thank you for your support and faith in the Company and its management.
Respectfully,
XUN ENERGY, INC.
Jerry G. Mikolajczyk
President and CEO