Posted today on company forum:
Quote:Question: Why are there no updates on the Xun Forum or press releases by the Company?
Response: There is no reportable news or material transactions that require the Company to publish. Anything more could be construed as promotional.
Xun Oil Marketing Division is very active in working with suppliers, funders and buyers. There are up to several physical commodity trade transactions in progress at any given time. It is a process that takes time to complete. Most of the time is vetting out the suppliers to ensure they are reputable and reliable suppliers. We are finding that the industry is plagued with many non reputable suppliers or parties representing they are suppliers, which after due diligence, are brokers or "wanna-be-suppliers". The due diligence may take from a day up to a couple of months to confirm the supplier. The ultimate test of a supplier is their ability to deliver the product to the delivery point, pass inspection and acceptance of the product. Our business model is based on selling to proven buyers or Majors, as labeled in the industry.
Why is taking so long to close? A physical commodity trade is simple in principle but complicated in procedure!! There are many moving parts, especially with our clever business model that partners financial partners to fund the purchase. A failure or drop-off with any of the moving parts will cause a delay with the physical commodity trade or a complete collapse of it requiring the Company to start over again. For example, the Company has been working with a refinery for the supply of crude oil since September 2015. It is a very complicated transaction which, if successful, will include more than the supply of crude oil. It could also include the supply of refined petroleum products, ownership in the refinery, expansion of the refinery and possibly even the ownership in a new large refinery along with infrastructure and logistics construction and ownership.
The Company is encouraged with the progress it is making. The Company has a positive outlook that one of the Joint Ventures in the Xun Oil Marketing Division will close on a physical commodity trade. We have a great team of consultants that we are working with that have a combination of over 30 years of expertise in physical commodity trades and have successfully closed over 20 physical commodity trades over the past several years.
We have been presented many offers for aviation jet fuel and D6 fuel oil which require us to have storage tanks in order to lock in the aviation jet fuel purchase. Our business model does not involving risking the funders money for renting storage tanks. This is not a risk we ask our funders to take.
THERE ARE NO ASSURANCES THAT THE COMPANY WILL BE ABLE TO CLOSE ON ANY OF THE PHYSICAL COMMODITY TRADES. THERE ARE NO ASSURANCES THAT SHOULD THE COMPANY CLOSE ON A PHYSICAL COMMODITY TRADE THAT IT WILL BE PROFITABLE.
DISCLAIMER: SUBJECT TO SAFE HARBOR CLAUSE.
We thank you for your interest, support and faith in the Company.
Respectfully,
Xun Energy, Inc.
Jerry G. Mikolajczyk
President and CEO
Safe Harbor
The statements contained in this post may not be historical fact, are forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995), within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The forward-looking statements contained herein are based on current expectations that involve a number of risks and uncertainties. These statements can be identified by the use of forward-looking terminology such as “believes,” “expects,” “may,” “will,” “should,” "projects" or “anticipates,” or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy that involve risks and uncertainties. The Company wishes to caution the reader that its forward-looking statements that are historical facts are only predictions. No assurances can be given that the future results indicated, whether expressed or implied, will be achieved. While sometimes presented with numerical specificity, these projections and other forward-looking statements are based upon a variety of assumptions relating to the business of the Company, which, although considered reasonable by the Company, may not be realized. Because of the number and range of assumptions underlying the Company’s forward-looking statements, many of which are subject to significant uncertainties and contingencies that are beyond the reasonable control of the Company, some of the assumptions inevitably will not materialize, and unanticipated events and circumstances may occur subsequent to the date of this report. These forward-looking statements are based on current expectations and the Company assumes no obligation to update this information. Therefore, the actual experience of the Company and the results achieved during the period covered by any particular forward-looking statements may differ substantially from those projected. Consequently, the inclusion of forward-looking statements should not be regarded as a representation by the Company or any other person that these estimates and projections will be realized. The Company’s actual results may vary materially. There can be no assurance that any of these expectations will be realized or that any of the forward-looking statements contained herein will prove to be accurate. There is no guarantee that the Company will close on the financing or close on the acquisition of the producing oil and gas leases.
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