Some observations I had on the narrative:
1. The JV deals are legitimate and quash the claims the deals do not exist.
2. The scale of deals XNRG is putting together. Per the Xun forum post:
“XUN arranged the sale of 1,000,000 +- 5% of aviation jet fuel to a Major, subject to satisfactory inspection and delivery FOB Rotterdam for US$111.00”
Doing the math, this sale alone was worth $111,000,000. Based on how profits would have been split from the post on the company forum:
“IEL and XUN agreed to split the spread between the contracted price and the ultimate sales price less applicable sales commissions, to XUN and after all expenses, on a 50% to IEL, and 50% to XUN. “
Deducting out the net cost stated in the narrative, I am using the net price stated $74, not the gross price, XNRG could have been looking at max $18,500,000 in revenue just for the first 1,000,000 barrels. Of course it stated that there would be fees and other expenses taken from this, but the maximum XNRG could make is the above, $18,500,000. Projecting forward using the numbers listed (the $111 sales price and net cost of $74), the entire deal, could have been worth $6,771,000,000 with max revenues to Xun starting at $2,257,000,000. That comes out to $188,083,333.33 a month! (Keep in mind that was one deal, they are working on multiple deals)
3. XNRG has large investors willing to fund the deals and JVs. Per the XNRG company forum post:
“XUN, through its connections, negotiated funding with an arm's length funder (XUN Investor) for the funder to provide, at minimum, the US$400,000,000 Bank Comfort Letter that was required by IEL to provide to FILKAS to continue with the SPA1. Xun Investor transferred US$15 Billion to HSBC-Hong Kong on July 31, 2014 for the purpose of JV002 to complete SPA1 and additional SPA's and provided confirmation of the US$15 Billion on August 1, 2014 to JV002.”
4. Majors, defined as large companies per the forum post:
“XUN will have exclusive marketing rights to market the Aviation Jet Fuel which utilize procedures for MAJORS (example of MAJOR - BP, Airlines, Shell, FedEx, UPS, DHL, etc.) to maximize the Sale Price of the Jet Fuel.”
The majors are willing to do business with XNRG and XNRG is forming relationships with the majors to deal with them later down the road. Think of it as building the list of buyers and suppliers so the ease of buying and selling the commodities will flow easier and faster because they have experience working with XNRG.
To me it is important to note the company addressed the situation in detail on the forum. To me it shows the transparency and communication with shareholders I have mentioned in the past. I see a lot of things that make me glad I invested here. Looking forward to coming months!
P.S. if anyone sees any problems with my math, let me know.
1. The JV deals are legitimate and quash the claims the deals do not exist.
2. The scale of deals XNRG is putting together. Per the Xun forum post:
“XUN arranged the sale of 1,000,000 +- 5% of aviation jet fuel to a Major, subject to satisfactory inspection and delivery FOB Rotterdam for US$111.00”
Doing the math, this sale alone was worth $111,000,000. Based on how profits would have been split from the post on the company forum:
“IEL and XUN agreed to split the spread between the contracted price and the ultimate sales price less applicable sales commissions, to XUN and after all expenses, on a 50% to IEL, and 50% to XUN. “
Deducting out the net cost stated in the narrative, I am using the net price stated $74, not the gross price, XNRG could have been looking at max $18,500,000 in revenue just for the first 1,000,000 barrels. Of course it stated that there would be fees and other expenses taken from this, but the maximum XNRG could make is the above, $18,500,000. Projecting forward using the numbers listed (the $111 sales price and net cost of $74), the entire deal, could have been worth $6,771,000,000 with max revenues to Xun starting at $2,257,000,000. That comes out to $188,083,333.33 a month! (Keep in mind that was one deal, they are working on multiple deals)
3. XNRG has large investors willing to fund the deals and JVs. Per the XNRG company forum post:
“XUN, through its connections, negotiated funding with an arm's length funder (XUN Investor) for the funder to provide, at minimum, the US$400,000,000 Bank Comfort Letter that was required by IEL to provide to FILKAS to continue with the SPA1. Xun Investor transferred US$15 Billion to HSBC-Hong Kong on July 31, 2014 for the purpose of JV002 to complete SPA1 and additional SPA's and provided confirmation of the US$15 Billion on August 1, 2014 to JV002.”
4. Majors, defined as large companies per the forum post:
“XUN will have exclusive marketing rights to market the Aviation Jet Fuel which utilize procedures for MAJORS (example of MAJOR - BP, Airlines, Shell, FedEx, UPS, DHL, etc.) to maximize the Sale Price of the Jet Fuel.”
The majors are willing to do business with XNRG and XNRG is forming relationships with the majors to deal with them later down the road. Think of it as building the list of buyers and suppliers so the ease of buying and selling the commodities will flow easier and faster because they have experience working with XNRG.
To me it is important to note the company addressed the situation in detail on the forum. To me it shows the transparency and communication with shareholders I have mentioned in the past. I see a lot of things that make me glad I invested here. Looking forward to coming months!
P.S. if anyone sees any problems with my math, let me know.
Xun Energy Inc. (XNRG) Stock Research Links
The fault-finder will find faults even in paradise. -Henry David Thoreau
