XUN Oil Marketing - Home - A Division of XUN Energy

OUR HISTORY

In the Fall, 2013, ready and willing buyers of petroleum products asked XUN Energy, Inc. President, Jerry G. Mikolajczyk, to assist them in sourcing and procuring refined products for new markets. In the past, Mr. Mikolajczyk had facilitated petroleum and physical commodity transactions for buyers on a pro bono basis. In order to capitalize on his expertise, experience and his industry connections, Mr. Mikolajczyk established the XUN Oil Marketing Division to research and evaluate the buying and selling of petroleum products as a profit centre. The research and evaluation was based on the following business objectives:

Purchase high quality petroleum products from reputable Suppliers;
Establish long term Supplier contracts;
Sell high quality petroleum products to Majors;
Establish long term sales agreements with the Majors; and
Establish long term relationships and creditability with Suppliers and Buyers based on product quality, delivery performance, service and flexibility.

On December 24th, 2014, the Board of Directors of the Company passed a board resolution approving the actuation of the XUN OIL MARKETING DIVISION (XOM) as a profit centre for XUN Energy, Inc.

XOM BUSINESS MODEL

Our business model is very simple: "We buy at the lowest price possible and sell at the highest price possible."

To achieve this model, we work with refineries or refinery trade desks to acquire the product and the sell to MAJORS following their procedures, such as CI, DIP and PAY.

We do not buy from Tier 2, Tier 3 or Tier 4 resellers unless the price point between the purchase price and our selling price allows us and the Financier to meet our target profit margins.

With only one exception, we do not sell to resellers. This one exception is if the reseller funds the purchase allowing the reseller to purchase the products from XOM at a discounted price equal to the profits they would realize by selling the product to MAJORS.

XOM works with accredited private individuals, funds and banks that provide XOM with the funding and lines of credit necessary to permit acquisition of product from refineries or trade desks, complying with their procedures. This allows XOM to purchase the products at the lowest possible prices while allowing us to be the titleholder of the product which we then sell to MAJORS at the highest prevailing market price. Each Sales Purchase Agreement (SPA) funding is unique and the profits shared are negotiated with the financier and varies from SPA to SPA.

All funding, purchases and sales are confidential. All financiers, suppliers and buyers names are kept confidential. We are a wholly owned subsidiary of XUN ENERGY, INC. and we adhere to Rule 406 under the Securities Act of 1933 ("Securities Act") and Rule 24b-2 under the Securities Exchange Act of 1934 ("Exchange Act"), link: SEC Staff Legal Bulletin No 1.