SOURCE: Xun Energy, Inc.

Xun Energy, Inc.

February 07, 2011 07:30 ET

Xun Energy Forms Xun Oil of Kentucky, Inc.

LONDON, KY--(Marketwire - February 7, 2011) - Xun Energy, Inc. ("XNRG") (OTCBB: XNRG) announces the Company has registered Xun Oil of Kentucky, Inc. (Xun Oil) for the purpose of developing an oil and gas operating company through the direct acquisition of leases. Xun Oil intends to drill for new oil and gas prospects as well as refurbish/enhance existing producing and non-producing oil wells in Kentucky and surrounding areas.

XNRG has retained the services of Mr. Michael Grubb to manage the Xun Oil field operations. Michael is a resident of Kentucky and has built a solid reputation with over 10 years of experience in the coal, oil and gas industry in Kentucky and Tennessee.

The Company has decided to take an aggressive active approach in the oil and gas industry versus a passive approach through a royalty program which did meet company expectations. The Company understands that drilling and exploring for oil and gas has many risks, but as the operator, they can control and better manage these risks as well as the associated costs. 

"The Internal Rate of Return (IRR) that we are looking for must meet or exceed the reward expectations when the associated risks are evaluated against the investment," commented Peter Matousek, President of the Company. He further commented, "In conducting our due diligence, the Company was encouraged by the data the research showed in Kentucky and the surrounding regions and we made a decision to take an active role in the natural resource sector."

"Building shareholder value is a key objective of this management team," stated Peter Matousek, "and we intend to continue to structure acquisitions that will build shareholder value and utilize our current share structure to increase this value."

As to the planned 15 well drilling program that was announced in a company press release on January 20, 2011, the company has decided not to participate. The results of XNRG's due diligence indicated the associated risk/reward and cost factors did not meet company expectations. 

About XNRG

Xun Energy, Inc. is a development stage company with limited assets. The Company's prospects will be subject to securing financing and the success of the drilling, exploration and refurbishing/enhancement programs.

This Press Release contains forward-looking information within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934 and is subject to the Safe Harbor created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. For those statements, we claim the protection of the safe harbor for forward-looking statements provisions contained in the Private Securities Litigation Reform Act of 1995 and any amendments thereto. Such forward-looking statements by definition involve risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to be materially different from the future results, performance or achievements expressed or implied by such forward-looking statements. In particular, there is no assurance that reserves, production, pricing levels or other factors pertaining to the oil and gas operations will be sustained at the expected rates or levels over time. Discussions of factors, which may affect future results, are contained in our recent filings. Under no circumstances does this Press Release constitute an offer to sell or a solicitation of an offer to buy the securities of the company described in this Press Release in which such offer, solicitation or sale of securities would be unlawful prior to registration, qualification or filing under the securities laws of any jurisdiction.

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