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QS Energy Inc. (QSEP)

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QS ENERGY, Inc. 

735 State Street
Suite 500
Santa Barbara, CA 93101

Phone (Toll-Free): +1-877-872-7892
Main: +1-805-845-3581
Fax: +1-805-845-4377

www.qsenergy.com
info@qsenergy.com

QSEP EMAIL ALERTS SERVICE

To receive company SEC filings and press releases update via email click here.

QS ENERGY LINKEDIN PAGE


QS ENERGY TWITTER PAGE
 


COMPANY OVERVIEW

QS Energy, Inc., develops and commercializes energy efficiency technologies that assist in meeting increasing global energy demands, improving the economics of oil extraction and transport, and reducing greenhouse gas emissions. The Company's intellectual property portfolio includes 48 domestic and international patents and patents pending, which have been developed in conjunction with and exclusively licensed from Temple University.

QS Energy is working in collaboration with Newfield, SRI, Dr. Carl Meinhart, and manufacturing partner to design and build an AOT™ prototype unit for operations in the upstream crude oil pipeline market (“AOT™ Upstream”), specifically configured for pipeline operating factors observed at Newfield’s Utah site.


ABOUT QS ENERGY INC / AOT OIL TECHNOLOGY AND JOULE HEAT SYSTEM
QS Energy, Inc. (OTCQX: QSEP) provides the global energy industry with patent-protected industrial equipment designed to deliver "measurable performance improvements" to crude oil pipelines. Developed in partnership with leading crude oil production and transportation entities, QS Energy’s high-value solutions address the enormous capacity inadequacies of domestic and overseas pipeline infrastructures that were designed and constructed prior to the current worldwide surge in oil production. In support of our clients’ commitment to the responsible sourcing of energy and environmental stewardship, QS Energy combines scientific research with inventive problem solving to provide energy efficienct clean tech solutions to bring new efficiencies and lower operational costs to the upstream, midstream and gathering sectors.


The Company’s intellectual property portfolio currently includes 48 domestic and international patents and patents pending, which have been developed in conjunction with Temple University. QS Energy has an exclusive licensing agreement, in perpetuity, with Temple. QS Energy is the developer of two types of patent-protected industrial equip- ment designed to deliver measurable performance improvements to crude oil pipelines. QS Energy’s flagship product AOT™ (Applied Oil Technology) reduces the viscosity of oil by applying an high intensity electrical field to the feedstock, allowing pipelines to operate at a lower pressure and transport crude oil more efficiently. Joule Heat is an energy efficient crude oil heating technology, also based on the direct application of electricity to oil, which improves flow and pipeline performance with less power and in a smaller form factor than existing trace heating solutions. Through its wholly owned subsidiary, QS Energy Pool, QS Energy looks to make accretive acquisitions of complementary entities or product lines in the oil & gas sector. Effective August 11, 2015, Save The World Air, Inc. changed its name to QS Energy, Inc., with a new trading symbol “QSEP”. This new name - QS Energy - embodies the Company’s “quick strike” philosophy, which is fundamentally at the core of its value proposition as it executes on parallel growth strategies within the global oil & gas sector.

QS Energy has conducted multiple analyses in conjunction with various partners that prove the financial benefits of AOT™ stemming from reduced viscosity for petroleum pipelines. Recent, preliminary analysis for a major Persian Gulf pipeline, for example, suggests that AOT can decrease crude oil viscosity by 20-25%, thereby increasing pipeline capacity by 400,000-500,000 barrels per month. Even assuming a conservative viscosity reduction figure of 15%, pro forma analysis demonstrates an annual benefit for the operator, net of AOT operating costs, in excess of $5 million. The value of increased pipeline throughput is based on an estimate of value added to operations calculated on a tolling fee or effective-tariff basis. Typical rates or tariff fees charged by global pipeline operators range from approximately $2.00-$3.00 per barrel. A projected 20-25% decrease in viscosity provided by AOT would lead to gross benefit for the operator of $560,000-$700,000 per month, or $6.7 -$8.4 million annually.


QS Energy is a revenue generating company with a solid cash position, clean balance sheet and a proven ability to develop and deliver industrial-grade equipment that support the company’s mission and enhance shareholder value. 

ABOUT QS ENERGY POOL / MERGERS AND ACQUISITIONS STRATEGIES
QS Energy has initiated the first step of its mergers & acquisitions plan as it looks to acquire complementary entities or product lines that will drive future shareholder value through its special purpose vehicle, QS Energy Pool. The exploration & production ("E&P") and oilfield services industries are incredibly capital intensive, and the recent surge in global oil & gas production has seen these industries to be even more so. The majority of the uptick in production stems from unconventional drilling and completions to extract petroleum products from both shale and tight sand formations. Onshore wells drilling these formations typically cost anywhere form 3X to 6X that of traditional, conventional wells, depending upon the depth of the drill and length of the lateral. To support this activity and take advantage of the recent oil boom, many small to mid-sized E&P companies have overleveraged their balance sheets to a significant degree with costly debt, with the strategy to receive payoff through production over time. The drastic decrease in global oil prices, or correction of commodities values, has put tremendous pressure on these companies as the payoff through production has not been realized. Further, given the decrease in revenues for these operators, many find themselves unable to pay off their expensive debt, to the point where companies with excellent producing assets and good cash flow file for bankruptcy at an alarming rate. 

QS Energy Pool was created to take advantage of today's unique market conditions by way of identifying and acquiring these drastically undervalued assets, and to significantly benefit QS Energy and its shareholders in the short term. The M&A strategy will target the acquisition of companies or technologies that can be leveraged for the deployment and enhancement of AOT™ and Joule Heat, and that can lead to more immediate revenue generation.


 

click on above photo for additional information

For additional Investment Bank information click here.

 


ALL QSEP SEC FILINGS
To access and read all official SEC filings please click here.

 


MEDIA SECTION

To access and read all official NEWS please click here.

Please find below a brief selection of the latest news.

QS ENERGY, INC. CEO AND CHAIRMAN GREGGORY BIGGER APPOINTED TO U.S. REP. RYAN ZINKE'S VETERANS ADVISORY COMMITTEE

QS ENERGY, INC. ENGAGES INVESTMENT BANK TO PURSUE FINANCING INITIATIVES


QS ENERGY PARTNERSHIP WITH NORRONT

SAVE THE WORLD AIR, INC. D/B/A STWA ANNOUNCES CORPORATE NAME CHANGE TO QS ENERGY, INC.

STWA LAUNCHES SPECIAL PURPOSE VEHICLE -- QS ENERGY POOL -- TO PURSUE ACQUISITION STRATEGY

STWA APPOINTS ROBERT KHAMI AS VICE PRESIDENT OF OPERATIONS

AOT SALES FROM AFRICA TO THE MIDDLE EAST

JOULE HEAT SALES FROM AFRICA TO THE MIDDLE EAST

AOT SALES IN NORWAY AND SUBSEA APPLICATIONS

QS ENERGY PARTNERSHIP WITH TEMPLE UNIVERSITY CHAIR OF PHYSICS

ENHANCING CRUDE OIL PIPELINE FLOW

SUPPRESSING TURBOLENCE AND ENHANCING LIQUID SUSPENSIONFLOW IN PIPELINES WITH ELECTRORHEOLOGY

NEUTRON SCATTERING STUDIES OF CRUDE OIL VISCOSITY REDUCTION WITH ELECTRIC FIELD

REDUCING VISCOSITY OF PARAFFIN BASE CRUDE OIL WITH ELECTRIC FIELD FOR OIL PRODUCTION AND TRASPORTATION
 


APPLIED OIL TECHNOLOGY [AOT]



click on above photo for additional information

The Company’s first product to market is the AOT™ Viscosity Reduction System, a suite of commercial crude oil pipeline flow assurance solutions. Designed to be installed at pipeline pump stations, AOT™ is cost-efficient, low maintenance, industrial grade equipment that works to improve the performance metrics of pipeline infrastructure. AOT technology was created by STWA research partner, Temple University (Philadelphia, PA) as a new and novel method by which to unlock pipeline chokepoints, improve pipeline flow capacity, reduce energy requirements per ton-mile of product shipped, and extend the life of pipeline equipment. The technology and all AOT™ products are protected by 47 patents world-wide. QS Energy’s AOT™ has been inspected, certified and approved to meet or exceed the specifications and quality control requirements of major North American midstream pipeline operators. It can be scaled to suit many different types of installation realities, from large-scale Midstream pipelines, fracwater remediation facilities, offshore production facilities, mobile transportation, gathering systems, and more. The AOT™ has been independently verified and tested by:

[1] United States Department of Energy (U.S. DOE at RMOTC)
[2] Temple University 
[3] The U.S. National Institute of Standards and Technology
[4] China Petroleum Pipeline Bureau (CPP)

For more information about the AOT™, click 
here to review the full Product Technical Brief.

On August the 1st 2013 
STWA first disclosed the existance of the agreement with TransCanada. and consequently in March 2014, TransCanda installed 110-tons of the Company’s commercial equipment known as AOT™ to one of the largest pipeline companies in North America - the Keystone Pipeline. The AOT™ is now in service and producing revenue for the company. 

Technology Overview: Serving the needs of customers with key scientific, manufacturing partners and top-tier customers to bring new solutions to the energy industry.
Strong patent protection (48 patents or patents pending), proprietary technology licensed from Temple University (Philadelphia, Pennsylvania), and industrial know-how position QS Energy several year’s ahead in terms of competitive technology.
The AOT™ technology is the result of years of research conducted at Temple University and is the world’s first ASME-certified industrial hardware to use the principles of electrorheology, the study of applying non-uniform electrical fields to change the mechanical behavior of fluids, to significantly reduce the viscosity of crude oil within pipelines during maximum flow conditions. Field tested at the RMOTC by the PRCI, independent testing laboratories such as ATS RheoSystems and fabricated to exacting industry standards by
QS Energy’s supply chain partners, the efficacy of AOT™ to increase flow rates, prevent bottlenecks, reduce pump station power consumption, enhance pipeline integrity and optimize flow assurance has been proven repeatedly in the lab and on a 500,000 barrel per day pipeline. However, the PRCI declined to fund further testing when the first round was completed without a baseline. Tao's testing proceedures in the past have been called into question, but this was something else.

QS Energy’s AOT™ is a suite of commercial crude oil pipeline flow assurance products designed to be installed at pipeline pump stations in the upstream, gathering and midstream sectors. The AOT™ system includes patented technology combined with proprietary know-how to create a unique solution for improving the economics and efficiencies of commercial-scale crude oil transport. Engineered in response to pipeline capacity challenges, AOT™ technology delivers performance that can be measured in each of the areas of importance in the movement hydrocarbon stream from reservoir to the point of sale. AOT™ technology is equally effective as a stand-alone solution or when deployed as a supplement to existing technology in a category of industrial products called ‘flow assurance’ or ‘drag reduction’ agents. Drag occurs in crude during transport due to naturally occurring paraffin and asphaltene particulates. Historically, oil producers have improved flow by reducing the viscosity of crude with diluents or other types of drag reducing agents that dilute the oil by as much as 50%. QS Energy’s AOT™ technology, however, differs from dilutant techniques in that it operates by applying a non-uniform electric charge (dielectrophoresis) to fluids during transport. Dielectrophoresis engages the paraffin and the asphaltene content in crude oil, creating a conformational change to the molecular structure.



Altering the paraffin and/or asphaltene in the crude oil reduces total surface area of the molecules for a constant volume fraction, thereby reducing the drag within the fluid itself. By lowering viscosity of the crude, pipeline systems benefit from higher flow rates, reduced system pressure, less wear and tear on components and potentially greater margins of operational safety.

Performance Highlights
Higher revenues and improved opex for pipeline operators
Reduce operational expenses and decrease pipeline pressures
Increase the total flow volume per day of an existing asset by 10-15%
In certain instances, “de-bottleneck” a choke point in their pipeline
Device is 33’x 8’ x’ 8x and bolts onto existing pump stations
Can handle up to 5,000 gallons per minute
Decreases viscosity by up to 56%


Temple University description of the "pilot test" (source Temple University website)
An electrical device designed by professor of physics Rongjia Tao, which significantly enhances the flow of crude oil through pipelines, has been successfully tested on existing U.S. portions of the Keystone Pipeline by the TransCanada Corp.
Tao’s applied oil technology (AOT™) device greatly reduces the viscosity and turbulence of crude oil. Patented by Temple University, the device was created with the financial support of Save The World Air, a Santa Barbara, California-based developer and vendor of commercial flow assurance solutions. Utilizing electrorheology principles, Tao’s devices have been installed just downstream from pipeline pumps. The electrical field polarizes suspended nanoparticles found in crude oil, causing them to aggregate in short chains along the flow direction which both decreases viscosity in that direction and effectively suppressing turbulence. This green technology may eliminate the need to heat the crude oil, a current costly industry standard, while significantly reducing required pumping pressures. Tests have verified viscosity decreases of 40 percent. “It also reduces the power needed to pump crude oil by 72 percent while the flow rate is unchanged,” added Tao. “And by reducing pumping pressures, it’s much safer for both land-based pipelines and pipelines that connect with off-shore drilling sites.”


JOULE HEAT SYSTEM

 

click on above photo for additional information

In October 2014, QS Energy entered into a Joint Development Agreement with Newfield Exploration Company (“Newfield”) to test a commercial prototype of QS Energy's Joule Heat equipment, and combined Joule Heat and AOT technology, on a crude oil pipeline serving the Greater Monument Butte oilfield located in the Uintah Basin of Utah. This test of the Joule Heat technology provides ideal conditions to demonstrate efficiency and efficacy. The Uintah Basin is 5,000 to 10,000 feet above sea level with average low winter temperatures of 16ºF. Crude oil pumped from the region is highly paraffinic with the consistency of shoe polish at room temperature. Uintah's black wax crude must remain at a minimum of 95ºF and yellow wax above 115ºF and therefore requires a substantial amount of heat to keep it above its high pour point. Operators in the upstream market often run at temperatures of 140ºF to 160ºF. Newfield, like many other companies in the region, incurs significant operating expense in the form of fuel and power used to heat the waxy crude and counter the cold climate conditions characteristic of Utah. The Company’s first Joule Heat prototype was installed for testing purposes at the Newfield facility in June 2015 and the system is operational; however, changes to the prototype configuration will be required to determine commercial effectiveness of this unit. QS Energy are working with Newfield and Dr. Carl Meinhart to modify the prototype configuration for observed pipeline and Joule Heat operating factors. In addition, QS Energy has provided a scaled-down version of the commercial Joule Heat unit for static and flow-through testing at Southern Research Institute (SRI).
Design modifications to the installed prototype unit will be completed subject to final laboratory analysis and correlation. Optimization and testing of this first prototype unit are expected to continue in the third and fourth quarters of 2015.

Joule Heat: better performance, greater efficiencies and lower operating costs
Due to a variety of factors such as high viscosity, density, poor mobility and cold ambient temperatures, the energy industry invests heavily in trace heating and other electrical and natural gas powered systems to ensure the safe, reliable and cost effective transport of crude oil. The use of heat is common throughout the energy sector but has traditionally been extremely inefficient and there- fore costly. Existing trace heating systems rely on using an electrical resistor to heat the oil, which results in inefficien- cies and loss of heat into the pipeline material. Despite the obvious need for a highly energy-efficient heating system designed to deliver optimal heat conductivity, there have not been significant technological innovations in crude oil heating technologies for many years. Until now.

An Inside-Oout approache to industrial heating

Developed by QS Energy and fabricated and assem- bled entirely in the United States, Joule Heat is a highly energy-efficient feedstock heating system that delivers optimal heat conductivity and performance using less power than other traditional heat systems. Specifically developed to treat a wide spectrum of feedstock and designed to withstand extreme weather conditions, Joule Heat is electrically powered, compact and adaptable to a variety of environments, from pipelines and oil fields to marine, rail and truck offloading facilities.Unlike traditional trace heat systems, Joule Heat is configured to deliver maximum heat conductivity by making direct contact with feedstock within the apparatus, an ASME-code pressure vessel, providing better perfor- mance at a lower operating cost.

How Joule Heat works

Joule Heat is an electrically powered crude oil heating technology specifically developed for use on pipelines and within offloading facilities and refineries. Joule Heat subjects the oil to a direct and intense electric field that increases oil temperature uniformly without interrupting flow. Preliminary testing of Joule Heat suggests efficiencies of over 60% when converting electrical energy into internal energy in oil, compared to efficiencies of approximately 30% typical in trace heat systems.

Innovative heat solutions for today's leaner, sustainable energy industry
Joule Heat provides E&P entities, pipeline operators and rail, marine and truck offload facilities with a new class of heat treatment options. With a smaller form factor than trace heating systems, offering virtually unlimited configuration options, Joule Heat is a plug and deploy system, requiring only in-flow and out-flow piping and access to a standard electrical wall outlet. Joule Heat is highly configurable to a variety of applications and can be modified to your exacting specifications.


ADDITIONAL APPLICATIONS (R&D)

Building a portfolio of solutions consisting of alternate distribution and network applications.
QS Energy solutions target the primary sectors of the oil & gas market (in order of greatest sales potential) upstream (producers), midstream (transporters) and downstream (refiners). The company’s first product to market is the AOT™ Viscosity Reduction System. Designed to function as an industrial-grade flow assurance solution, AOT™ Midstream is installed on pump stations in the upstream, midstream and gathering sectors. Cost-efficient, low maintenance and easily configurable to customer requirements, AOT™ Midstream unlocks pipeline chokepoints, improves pipeline flow capacity, reduces energy requirements per ton-mile of product shipped, and extends the life of pipeline equipment. Based on intensive analysis of the real world needs of tier-one oil producers and pipeline transportation companies throughout the world, QSEP has determined that the AOT™ Viscosity Reduction Systems offers a broad spectrum of pipeline optimization applications. In addition, applications outside increasing oil flow speeds are also in development. QS Energy plans to build a portfolio of solutions consisting of alternate applications for the AOT™ technology as well as other technologies for use within related capital-intensive distribution and transportation networks.

Areas in which the company believes that the AOT™ viscosity reduction systems has applications:

E&P
Dewatering facilities
Gathering systems
Emulsion separation

CARGO SHIPS (VLCC)
Accelerated on load / off load time
Bunker fuel enhanced combustion

OFF SHORE
Cold environments
Hydrates
Paraffin deposits


Commercializing Joule Heat System
QS Energy is also commercializing STWA Joule Heat, an energy-efficient technology for heating crude oil in pipelines to improve flow. Unlike traditional trace heating systems which generate heat via a resistive trace heating element which transfers energy into the oil, the QS Energy solution applies an electrical field directly to oil, generating heat within the flow itself. The result is optimal heat conductivity and performance with less power and in a smaller form factor.

 


ACTIVE GROWTH STRATEGY

QS Energy management has created a stable and robust foundation for growth in a dynamic industry.
Following the deployment of an AOT™ Midstream system with a top-tier North American pipeline operator,
QS Energy recorded its first revenues** from this equipment lease. Securing regulatory approval for the use of the 110-ton AOT™ system on a 500,000 barrel per day high-pressure crude pipeline paves the way for commercial deployment of QS Energy technology anywhere in the world. A second equipment lease agreement with another leading midstream energy company for use of STWA flow assurance equipment on a crude-condensate pipeline provides the company and its technology with a presence in the fast-growing condensate market. Ultra-light crude oil and condensate production has skyrocketed due to the enormous amount of oil and natural gas being recovered from shale formations.

Recent Business Development/Operational Achievements.
--> Executed non-disclosure agreements with two top tier multi-national energy entities
--> Filed for additional intellectual property provisional patents
--> Completed operational realignment that brought the Company into full Sarbanes-Oxley (SOX) Section 404 compliance


ENVIRONMENTAL STEWARDSHIP

Supporting a safer, greener, more economical delivery method for transporting fuel.
New sources of oil are being discovered throughout the globe and production is already booming or poised to accelerate in the United States, Canada, Australia, Mexico, Argentina and hot spots on the continent of Africa. The challenge is to find safe, efficient and environmentally friendly ways to transport this 'new oil' to refineries. The primary methods of transporting oil include rail, shipping, trucking, and overland pipelines. Examining the pros and cons of these delivery systems, experts are considering not just the monetary costs, but the risk factors. In the event of an accident, how much oil would be released? During transport, do land areas or waterways potentially suffer from contamination? From well hole to destination, what levels of CO2 might be emitted into the environment? According to multiple industry and government studies, pipelines are by far the safest and most economical method to move crude. However, existing pipeline infrastructure domestically and internationally is increasingly incapable of meeting the demands of burgeoning production. U.S. Secretary of Energy Ernest Moniz recently noted that increased investment in pipeline infrastructure is needed to keep up with the growth of new oil production. That’s where QS Energy’s AOT™ Viscosity Reduction System can play a vital role. When oil producers and transportation entities deploy the AOT™ system on their pipeline pumping stations, crude feedstock moves with less drag resistance, thereby accelerating the flow of oil while achieving greater operational efficiencies. The QS Energy AOT™ Viscosity Reduction System allows producers to increase the volume transported per pipeline. By using the AOT™ system to move oil through pipelines at all-time rapid speeds, huge cost savings are complemented by reductions in pollution that would have been caused by alternative forms of oil delivery mechanisms ... trucking, shipping and rail.

QS Energy's AOT technology decreases viscosity by up to 56% at ROMTC.
The net result is that
QS Energy technology is instrumental in the safer, more cost-effective delivery of greater volumes of oil and helps the industry avoid reliance on riskier alternative transportation methods. Furthermore, because AOT™ reduces the amount of energy needed to power pumping stations, QS Energy provides its customers with an ability to reduce their carbon footprint and lessen the environmental impact of their operations. QS Energy proudly works to develop methods for safely and efficiently delivering the energy to people who depend on it. The company strives to build lasting partnerships with energy companies to collaboratively do what is right for the global economy, meet worldwide energy needs, and to do it as safely as possible.
 


MARKET OPPORTUNITIES

Collaborating with Tier-One multinational energy partners to provide effective, cost-efficient and innovative product solutions to meet rigorous industry demands.
Today’s global energy industry is rapidly evolving and expanding as conventional energy exploration, extraction and transportation entities apply new technology and equipment to unlock new unconventional production fields worldwide. These innovative oil exploration and production techniques have made previously unrecoverable assets viable for the first time, driving an unprecedented surge in oil production. An estimated $90 billion was invested in midstream and downstream infrastructure in 2014, a figure expected to climb to $200 billion by 2035 to support the projected increase in global energy production (U.S. Department of Energy). This has forced producers to compete for less attractive transport alternatives, leading to massive growth in rail and highway traffic and creating logistical, environmental and safety challenges as well as higher operational expenses and significant liability exposure. As producers seek to bring surging production to market, new technologies and methodologies are being developed to eliminate pipeline chokepoints and solve related problems that have far-reaching economic, national security and public safety implications. These flow assurance technologies play an increasingly critical role in transporting the expanding production rates from wellhead to refinery. As a technology incubator to the energy industry,
QS Energy is intimately involved with its customers and key manufacturing partners in this new energy revolution. QS Energy works within the multi-billion dollar oil and energy industries to provide innovations such as its AOT™ solid-state viscosity reduction equipment to the upstream and midstream markets. The company is partnered with top-quality manufacturing service providers to fabricate equipment to meet the highest standards of inspection and quality controls within the industry.

Growth Potential 
QS Energy has identified significant expansion opportunities to deploy AOT™ and other QS Energy-developed technologies within similar and related capital-intensive distribution and transportation networks on a global scale. By combining scientific research with best practices engineering and inventive problem-solving,
QS Energy is ideally positioned to address the operational challenges facing today’s energy industry.

Clean Technology, Green Benefits
The use of carbon credits and carbon tax incentives is growing in importance within the industry, providing a positive financial impact for companies deploying “clean tech” equipment such as AOT™. By improving operational efficiencies and measurably reducing their carbon footprint, energy companies stand to benefit from each ton of CO2 (carbon dioxide) or CO2e (carbon dioxide equivalent gases) they remove or prevent from entering the atmosphere. QS Energy’s proprietary hydraulic analysis software provides global producers and transporters of crude with highly accurate projections, as well as full case study analyses, of the pipeline assets they can capture by implementing the AOT™ solution in their operations.

 


UPLISTING

"Our upgrade to OTCQX is a direct result of the corporate restructuring undertaken by our new leadership, the addition of an independent board of directors and a commitment to deliver greater value to our shareholders and better position the Company to institutional and retail investors," stated Gregg Bigger, QS Energy Chief Executive Officer and Chairman of the Board. "The continued growth of QSEP as a trusted supplier to the global energy industry requires the higher level of operational integrity and fiscal discipline that we have now achieved and that today's capital markets demand". To qualify for OTCQX companies must meet high financial standards, demonstrate compliance with U.S. securities laws, be current in their disclosure, and be sponsored by a Designated Advisor for Disclosure ("DAD") or Principal American Liaison ("PAL") serving as a professional third-party advisor. Currently just over 350 companies trade on OTCQX, ranging from global blue-chip companies to high growth small-cap companies.
 


INVESTMENT HIGHLIGHTS

Proprietary Technology
Valuable IP Portfolio
Greentech Positioning
Strong Growth Potential
Approved Vendor Status
Proliferate Target Market
Broad Industry Application
Strong Corporate Governance


 


MANAGEMENT TEAM

QS Energy is led by a seasoned management team and a strong independent board of directors. Together, these individuals apply their extensive industry expertise to provide sound strategic direction and a solid foundation for success.

Gregg Bigger
Chairman of the Board, Chief Executive Officer 

Gregg Bigger was most recently founding partner of Rocfin Advisors, a strategic management consulting company providing advice and direction to a variety of clients including companies in the energy, clean tech, and emerging technology markets. Prior, Mr. Bigger was founder and board member of The Bank of Santa Barbara. Earlier in his career Mr. Bigger held a variety of key management and leadership positions including U.S. Trust as a vice-president in the Private Client Group, and First Republic Bank as a vice president and manager in the Private Banking Group. Mr. Bigger served in the United States Marine Corps Special Operations Unit.

Michael McMullen
Controller

As controller QS Energy Michael McMullen is responsible for financial and operational leadership and establishing and implementing policies relevant to strategic planning and risk management. During his career in corporate development and finance, Mr. McMullen has established a strong record of accomplishment, structuring and closing domestic and international transactions across a variety of industries. Prior to joining QS Energy, Mr. McMullen served in senior executive capacities with several first-to-market energy and technology companies, including FloWind Corp. and SomethingNow, Inc. As a management consultant and financial advisor to mid-market healthcare and bio-science entities, Mr. McMullen specialized in providing growth and transition management oversight to companies serving HMOs, hospitals and cancer centers.

Robert Khami
Vice President of Operations
Throughout his professional career, Mr. Khami has been engaged in a variety of technical and business develop- ment initiatives for the energy industry. Prior to QS Energy, Inc., Mr. Khami was General Manager at Hudson Products Corporation in Houston, Texas, where he increased both domestic and international sales, and created new products that improved operational efficiencies. He also served as the General Manager and Chief Operating Officer for two subsidiaries of Dorado Energy Partners, also in Houston. At Dorado, he led technical sales and account management initiatives, and developed custom technology solutions engineered to meet the exact needs of specific clients. Mr. Khami began his career as a Loads and Stress Analyst at Boeing Aircraft Company, and as a Chief Engineer at Ford Motor Company. He holds a Masters in Mechanical Engi- neering degree from the University of Washington, and a Bachelors of Science in Aerospace Engineering degree from the University of Michigan.

Bill Nicholson
Advisor, QS Energy Pool
Bill Nicholson has a long track record of success as a senior executive in private and publicly traded companies in the energy industry, and the consumer products and technol- ogy sectors. From 1984 to 1992 Mr. Nicholson served as Chief Operating Officer of Amway Corp. during a period of extreme growth which saw revenues jump from $1.5 billion to $5 billion. As an advisor and investor, Mr. Nicholson has consulted with the IMR Fund, Jacob’s Trading Company, FLW Outdoors, and was a principle investor and president of Swiftships, Inc., a firm that became the leading manufac- turer of high-speed aluminum watercrafts used for marine patrol and offshore oil field support. As both an investor and general partner he has been active in natural gas exploration in the North Texas Barnett Shale, drilling 20 horizontal deep gas wells and owning and operating eight vessels and two ocean-going work barges in support of offshore oil and gas production in the Persian Gulf, Gulf of Mexico, the Califor- nia Coast and the India Ocean. As a captain in the U.S. Air Force, Mr. Nicholson has 300 combat missions to his credit and is the recipient of the Distinguished Flying Cross, Air Medal, Vietnamese Medal of Honor and Cross of Gallantry.

Scott Y. Wood
Advisor, QS Energy Pool
Scott Wood has three decades of well-to-refinery experi- ence in the energy industry, providing oversight of oil and gas properties in many of the industry’s most active shale formations and basins. Mr. Wood’s career began in 1981 as a Petroleum Landman at Liberty Oil and Gas in Oklahoma City, prior to his venturing out to develop oil and gas proj- ects. In 1991 he formed Energy Reserves Group, LLC, an E&P company based in Galveston Bay, Texas. As general manager, Mr. Wood oversaw a series of acquisitions and divestitures including Plains Illinois Inc. which were consoli- dated into ERG Resources, L.L.C.


DON DICKSON
Board Member

Mr. Dickson returned to Kinder Morgan after working for the company’s natural gas operations division for 26 years, during which time he served in various capacities includ- ing Director of Operations on two major pipeline projects: the 42” Rockies Express (REX) and the 42” Midcontinent Express Pipeline (MEP). Between his stints at Kinder Morgan, Mr. Dixon served as Chief Executive Officer for Advanced Pipeline Services (APS), which provided a full range of services to the oil and gas industry including new pipeline and facilities construction, horizontal directional drilling and pipeline integrity/ rehabilitation. He also was Director of Operations at Tetra Resources, where he completed various onshore and offshore oil and gas wells, and was a Senior Engineer with Halliburton Services. Mr. Dickson earned his B.S. in Engineering from Oklahoma State University.

THOMAS A. BUNDROS
Board Member

During his extensive career in the energy industry Mr. Bundros has served as chief financial officer and a senior level finance executive with a variety of entities in the oil and gas industry and public utilities sector. In addition to his tenure as Chief Financial Officer at Colonial Pipeline Company, the world’s largest pipeline operator transporting 100 million gallons of refined petroleum products daily across 5,500 miles of pipeline, Mr. Bundros held various financial positions in the Atlanta and New York offices of the Southern Company System, the 16th largest utility company in the world and the fourth largest in the U.S. with over 4 million customers in Alabama, Georgia, Florida, and Mississippi. Mr. Bundros currently serves as the Chief Operations Officer for Dalton Utilities, a provider of electricity, natural gas, water and telecommunications services to the city of Dalton and portions of northwest Georgia. Mr. Bundros earned his Master of Business Administration in Finance and Bachelor of Science in Economics and Business Administration at the University of North Carolina at Greensboro.

CHARLES R. BLUM
Board Member

Charles R. Blum was appointed on July 25, 2007 to the Board of directors and engaged as the President and Chief Executive Officer of the Company. In January 2010, Mr. Blum resigned as Chief Executive Officer and continued to serve as President, until stepping down to be replaced by current President Mr. Greggory Bigger in September 2012. Mr. Blum spent 22 years as the President/CEO of the Specialty Equipment Market Association (SEMA). SEMA is a trade group representing 6500 business members who are actively engaged in the manufacture and distribution of automotive parts and accessories. SEMA produces the world’s largest automotive aftermarket Trade Show which is held annually in Las Vegas, Nevada. Mr. Blum led the association as its members grew from a handful of small entrepreneurial companies into an industry membership that sells over 31 billion dollars of product at the retail level annually. Mr. Blum has a proven record of accomplishment as a senior executive and brings a broad knowledge of the automotive aftermarket to the Company. Mr. Blum attended Rutgers University. 

NATHAN SHELTON
Board Member

Nathan Shelton was President and part owner of K&N Engineering where he oversaw its growth into an industry leader. After selling his interest in 2002, he founded S&S Marketing, which operates an automotive aftermarket parts rep business. Mr. Shelton served on the board of Specialty Equipment Market Association (SEMA), including serving as its Chairman from 2002 to 2004. In 2007, Mr. Shelton was elected to the SEMA “Hall of Fame,” and is the recipient of numerous industry awards. He served honorably in the United States Seabees from 1968 to 1972. 

MARK STUBBS
Board Member

Mr. Stubbs currently serves as Chief Financial Officer for London Stock Exchange-listed BBA Aviation in its After- market Services Division. BBA is a leading global aviation services and aftermarket support provider. Prior to joining BBA, Mr. Stubbs served as CFO and Interim Chief Execu- tive Officer for then NASDAQ-listed CallWave, Inc., a global provider of enhanced telecommunications software and services. Mr. Stubbs also served as CFO of Sound ID, a privately owned consumer electronics company. Mr. Stubbs has held a number of executive positions including Vice President Global Supply Chain, and VP and Managing Director Europe, Middle East and Africa at Somera, which was a publicly traded, leading global provider of telecommunications infrastructure and services. Mr. Stubbs has held a number of financial management positions at Kinko’s (acquired by NYSE-listed FedEx). He earned his B.A. in Finance and his MBA from Cal Poly San Luis Obispo. Mr. Stubbs is a Certified Public Account.

 


USEFULL LINKS

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ALL SEC FILINGS

ANNUAL REPORTS
QUARTERLY REPORTS
SECTION 16 FILINGS

 


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RECENT UPDATES/PRESS RELEASES (read from the bottom up for the most recent update or press release)

Value Engineering Program Results in Improved AOT(TM) Efficacy and Efficiency

SANTA BARBARA, CA -- (Marketwired) -- 02/08/16 -- QS Energy, Inc. (the "Company") (OTCQX: QSEP), a developer of integrated technology solutions for the energy industry, today announced completion of a value engineering program designed to improve the efficacy and efficiency of its AOT™ (Applied Oil Technology) crude oil viscosity reduction hardware. This program began mid-2015 with analysis and testing of selected AOT components to address internal electrical field issues encountered during AOT operations on a commercial pipeline transporting ultra-light crude oil known as condensate. The resulting value engineered design improves the overall efficiency of electric field generation. Tests performed on the re-engineered AOT unit at Industrial Screen and Maintenance (ISM), one of QS Energy's supply chain partners in Casper, Wyoming, demonstrated the highest efficiency electric field generation measured to date. The value engineered AOT system is expected to be re-deployed on a customer's condensate pipeline within the next few weeks.

"As a result of an extended series of testing protocols on a primary condensate line, we have implemented internal design modifications to optimize the efficiency of AOT, impacting both crude oil and condensate operations," stated Greggory M. Bigger, QS Energy Chief Executive Officer and Chairman. "Thanks to the collaborative efforts of several specialists, we believe these improvements will expand our reach to a broader range of feedstock and accelerate our time to market."

Based in California with distributors in the Middle East, Europe, Africa, and Scandinavia, QS Energy is currently commercializing AOT as the industry's only solid-state system using electrical fields to reduce the viscosity of crude oil, enabling higher volumes to flow more efficiently through pipelines. AOT was originally developed in partnership with Temple University and has since been independently tested in both field tests and commercial operating environments by the U.S. Department of Energy, ATS RheoSystems and PetroChina. Previous third-party analysis of this patented technology have shown viscosity reductions ranging from 20 to 56 percent, which to a commercial pipeline operator translates to reduced operating costs and a significant increase in pipeline capacity and revenues.

Design modifications made to AOT were undertaken specifically to address performance issues encountered on a pipeline exclusively pumping ultra-light crude oil condensate. Under operating conditions, conductive particulate matter within the condensate caused a sharp drop in impedance within the AOT. Subsequent analysis and testing led to changes in electrical insulation, inlet flow improvements and other component modifications. As Mr. Bigger explained, "These design modifications and resulting efficiency gains reach beyond the condensate market.

The improved efficiency has the potential to significantly reduce power supply requirements on crude oil pipelines, as experienced during an earlier deployment on a high volume, mid-continent pipeline."

The AOT treatment vessel functions by creating an electrical field across a grid pack to create a dipole moment within particulate matter suspended within the crude oil, such as asphaltenes and paraffins, causing molecular conformation, which reduces fluid viscosity. Under typical operating conditions, the AOT internal grid pack operates at a resistance level in the 200 mega-ohm range, consuming milliamps of electricity to reach the high kilovolt range, which is sufficient to effectively treat most crude oils and condensates. This process, known scientifically as electrorheology and dielectrophoresis, acts to counter the thick and sticky nature of crude oil which makes it resistant to flowing within a pipeline.

Tests performed at Industrial Screen and Maintenance on an unmodified AOT grid pack, measured impedance at approximately 200 mega-ohms of resistance. Under similar conditions, the re-engineered AOT grid pack measured more than 20 giga-ohms.

"The re-engineered AOT measured 100 times more impedance then the pre-modified unit," Dan Miner, President of Industrial Screen and Maintenance, explained. "As modified, the AOT needed only 500 to 800 nano-amps to achieve a test voltage of 15,000 volts. After more than three years of working with QS Energy on the commercial AOT design and fabrication, these are by far the best post-manufacturing test results we've seen. This new design exhibits dramatic improvement."

For further information about QS Energy, Inc., visit www.qsenergy.com, read our SEC filings at http://ir.stockpr.com/qsenergy/all-sec-filings and subscribe to Email Alerts at http://ir.stockpr.com/qsenergy/email-alerts to receive company news and shareholder updates.

Safe Harbor Statement:

Some of the statements in this release may constitute forward-looking statements under federal securities laws. Please visit the following link for our complete cautionary forward-looking statement: http://www.qsenergy.com/site-info/disclaimer

About AOT™ (Applied Oil Technology)

Developed in partnership with scientists at Temple University in Philadelphia, AOT (Applied Oil Technology) is the energy industry's first crude oil pipeline flow improvement solution using an electrical charge to coalesce microscopic particles native to unrefined oil, thereby reducing viscosity. Over the past four years AOT has been rigorously prepared for commercial use with the collaboration of over 30 engineering teams at 19 independent oil production and transportation entities interested in harnessing its proven efficacy to increase pipeline performance and flow, drive up committed and uncommitted toll rates for pipeline operators, and reduce pipeline operating costs. Although AOT originally attracted the attention of pipeline operators interested in improving their takeaway capacity during an historic surge in upstream output resulting from enhanced oil recovery techniques, the technology now represents the premiere solution for improving the profit margins of producers and transporters during today's economically challenging period of low spot prices and supply surplus.

About QS Energy, Inc.

QS Energy, Inc. (OTCQX: QSEP) provides the global energy industry with patent-protected industrial equipment designed to deliver measurable performance improvements to crude oil pipelines. Developed in partnership with leading crude oil production and transportation entities, QS Energy's high-value solutions address the enormous capacity inadequacies of domestic and overseas pipeline infrastructures that were designed and constructed prior to the current worldwide surge in oil production. In support of our clients' commitment to the responsible sourcing of energy and environmental stewardship, QS Energy combines scientific research with inventive problem solving to provide energy efficiency 'clean tech' solutions to bring new efficiencies and lower operational costs to the upstream, midstream and gathering sectors. More information is available at: www.QSEnergy.com

 

QS Energy's AOT(TM) Crude Oil Viscosity Reduction System to Be Re-Deployed on Primary Eagle Ford Pipeline (Kinder Morgan's pipeline)

SANTA BARBARA, CA -- (Marketwired) -- 02/10/16 --  QS Energy, Inc. (the "Company") (OTCQX: QSEP), a developer of integrated technology solutions for the energy industry, today announced that an upgraded AOT™ (Applied Oil Technology) viscosity reduction system will be re-installed on a major crude and condensate pipeline serving the Eagle Ford in South Texas. The newly optimized AOT unit has been extensively retrofitted specifically to reduce viscosity of ultra-light crude while mitigating scaling and sludge buildup, both costly impediments to normal pipeline operation. The Eagle Ford Formation is the most active shale play in the world and is estimated by the U.S. Energy Information Administration (EIA) to have proved reserves of approximately 4.1 billion barrels of recoverable oil.

Developed in partnership with Temple University (Philadelphia, Penn.), AOT is a patent-protected hardware system capable of reducing the viscosity of a wide spectrum of grades of crude oil while in transit. Extensive laboratory testing and multiple field deployments have repeatedly and under controlled conditions verified AOT's efficacy in increasing flow rates, lowering pump station power consumption, and improving performance due to reduced pipeline operating pressure.

"The opportunity to demonstrate the effectiveness of this newly modified AOT system on a line that moves the bulk of the condensate from Eagle Ford to processing facilities in the Port of Houston puts our technology directly in the crosshairs of two of the most important trends impacting the U.S. energy industry -- the challenge of transporting the enormous volume of upstream condensate, and the ongoing drive to reduce pipeline operating and maintenance overhead in the face of low spot prices and tight profit margins," commented Greggory M. Bigger, QS Energy Chief Executive Officer and Chairman.

Produced as a by-product of the extraction of "tight" oil and gas from shale formations, condensate accounts for a growing percentage of U.S. shale crude output and has contributed significantly to the pipeline capacity problems resulting from historically robust upstream production. According to the EIA, last year roughly 1.2 million barrels of condensate were flowing from America's tight oil fields daily.

"By re-engineering AOT specifically for the unique characteristics of ultra-light lease condensate, we intend to demonstrate to the industry the quantifiable operational and cost efficiencies our technology can bring to the fastest growing category of crude oil today," Mr. Bigger added.

Despite commodity markets currently being mired in a supply surplus, Mr. Bigger says that upstream producers see a promising future for condensate.

"Recent changes in federal law now allow the export of unprocessed crude oil, opening up lucrative foreign markets, including Asia, where many nations such as China, Japan, Singapore and Malaysia import most or all of the condensate they use to make gasoline or to dilute heavy crude," Mr. Bigger explained. "Refining facilities capable of 'splitting' condensate to produce liquid hydrocarbon mixtures are going to capitalize on the removal of oil export restrictions, which underpins the need to improve the economics and performance of the pipelines used to transport the hundreds of millions of barrels entering the nation's pipeline infrastructure annually." 

According to energy sector data compiled by Thomson Reuters, approximately $1 billion in condensate splitter plants in the U.S. have been brought online or are under construction and another $715 million to $1 billion are on the drawing board.

For further information about QS Energy, Inc., visit www.QSEnergy.com, read our SEC filings at http://ir.stockpr.com/qsenergy/all-sec-filings and subscribe to Email Alerts at http://ir.stockpr.com/qsenergy/email-alerts to receive company news and shareholder updates.

Safe Harbor Statement:
Some of the statements in this release may constitute forward-looking statements under federal securities laws. Please visit the following link for our complete cautionary forward-looking statement: http://www.QSEnergy.com/site-info/disclaimer

About AOT™ (Applied Oil Technology)
Developed in partnership with scientists at Temple University in Philadelphia, AOT (Applied Oil Technology) is the energy industry's first crude oil pipeline flow improvement solution using an electrical charge to coalesce microscopic particles native to unrefined oil, thereby reducing viscosity. Over the past four years AOT has been rigorously prepared for commercial use with the collaboration of over 30 engineering teams at 19 independent oil production and transportation entities interested in harnessing its proven efficacy to increase pipeline performance and flow, drive up committed and uncommitted toll rates for pipeline operators, and reduce pipeline operating costs. Although AOT originally attracted the attention of pipeline operators interested in improving their takeaway capacity during an historic surge in upstream output resulting from enhanced oil recovery techniques, the technology now represents the premiere solution for improving the profit margins of producers and transporters during today's economically challenging period of low spot prices and supply surplus.

About QS Energy, Inc.

QS Energy, Inc. (OTCQX: QSEP) provides the global energy industry with patent-protected industrial equipment designed to deliver measurable performance improvements to crude oil pipelines. Developed in partnership with leading crude oil production and transportation entities, QS Energy's high-value solutions address the enormous capacity inadequacies of domestic and overseas pipeline infrastructures that were designed and constructed prior to the current worldwide surge in oil production. In support of our clients' commitment to the responsible sourcing of energy and environmental stewardship, QS Energy combines scientific research with inventive problem solving to provide energy efficiency 'clean tech' solutions to bring new efficiencies and lower operational costs to the upstream, midstream and gathering sectors. More information is available at: www.QSEnergy.com.

QS Energy and Temple University 'Pipeline Optimization' Program Offers Opex Savings Analysis Based on Newly Improved AOT(TM) Viscosity Reduction Hardware

SANTA BARBARA, CA -- (Marketwired) -- 02/17/16 --  QS Energy, Inc. (the "Company") (OTCQX: QSEP), a developer of integrated technology solutions for the energy industry, today announced that its jointly managed laboratory testing of crude oil samples to measure viscosity reduction now incorporates calculations based on the recently value engineered next generation AOT™ (Applied Oil Technology), an industrial hardware system that treats unrefined oil with an electrical field to improve flow while in transit via pipeline.

Viscosity reduction is a critical factor for improving the performance of pipeline transportation systems because internal fluid friction creates the majority of friction loss which requires higher levels of pressure generated by the pumping station. By lowering the viscosity of crude oil, AOT provides pipeline operators with potentially increased flow volume, a reduced occurrence of bottlenecks and chokepoints, and lower energy consumption at pipeline pump stations.

Developed in partnership with Temple University and entirely designed and manufactured in the United States, AOT is the energy industry's only solid-state system using electrical fields to reduce the viscosity of crude oil, enabling a wide spectrum of grades to flow more efficiently and economically through pipelines. Modifications of AOT undertaken in mid-2015 in collaboration with a leading vertically integrated oil and gas company has resulted in performance gains in both the efficacy of the hardware and overall efficiency of electric field generation, further enhancing the value of the technology to a global pipeline industry currently seeking strategies to mitigate margin compression while managing fixed operating costs.

"In cooperation with Temple University, QS Energy is pleased to offer in-depth crude oil composition analysis and viscosity reduction testing based on the latest AOT performance capabilities," stated Greggory M. Bigger, QS Energy Chief Executive Officer and Chairman. "This is especially timely given that today's depressed spot oil prices are driving an extraordinary effort throughout the energy industry to lower overhead and achieve greater efficiencies."

Crude oil samples submitted to Temple University's College of Science and Engineering in Philadelphia, Penn. under a material transfer agreement (MTA) or non-disclosure agreement (NDA) are subjected to a controlled electrical field to suspend the naturally occurring impurities in unrefined oil, which re-creates the effect achieved by AOT. Over the past four years QS Energy has underwritten the testing of dozens of 3- to 5-gallon quantities of crude oil from most of the primary oil production regions of the world under the supervision of Dr. Rongjia Tao, the chair of the Department of Physics at Temple University and a leading researcher in the development of technologies based on the use of electro-rheological principles.

"Our laboratory tests have consistently demonstrated that AOT can significantly reduce the viscosity of crude oil, results which we have replicated on closed loop and high volume commercial deployments," commented Dr. Tao. "We have invited and continue to invite interested energy companies to provide crude oil typical of their output for analysis and testing to determine the efficacy of AOT within their operations."

Included in the complimentary testing protocol are a series of assessments which include a room temperature baseline and a variety of chemical composition and impurity content studies based on the specifications requested by the engineers providing the sample. Once a determination is made of the viscosity reduction level possible through the use of the AOT technology, further data is collected in an AOT On Site Questionnaire provided by the prospective customer and reviewed on a strictly confidential, non-disclosure basis.

Following completion of the lab study and subsequent formal viscosity reduction white paper report compiled by Dr. Tao, QS Energy engineers and technicians perform a hydraulic analysis using proprietary software to accurately predict maximum flow rates, probable pump station energy savings, and possible increased toll rate revenues, all based on length, diameter and other specific characteristics of the target pipeline. The resulting AOT Preliminary Case Study Analysis, typically delivered within 30 days of the submission of the crude oil sample, provides a detailed proposal showing the pipeline system efficiencies and economic benefits which can be expected from the deployment of a customized AOT installation.

Recently, QS Energy has tested crude oil samples for operators in North America and overseas, the outcomes of which have been forwarded as AOT deployment proposals to these transportation customers. According to QS Energy officials, many of the AOT installation opportunities are structured as joint development agreements that could potentially lead to revenue generating installations. Two of AOT's previous inaugural commercial installations were negotiated under revenue-producing Equipment Lease-Option to Purchase Agreements, a procedure that Mr. Bigger says best suits the procurement and budgeting practices of the industry.

"AOT has been proven effective for optimizing the performance of virtually any pipeline, regardless of length, diameter, flow rating, or volume of heavy to mid-rated crude oils carried, as shown by years of laboratory testing and pipeline deployments monitored by independent researchers at the U.S. Department of Energy, ATS RheoSystems, and PetroChina," Mr. Bigger stated. "Although the commercialization of AOT was commenced when spot prices were at an historic high of $120 per barrel and record levels of upstream production far outstripped the capacity of pipelines to move crude oil from wellhead to refinery, industry interest in the technology continues to grow in the face of downward price pressure and supply surplus which is evidenced by our ongoing collaboration with the engineering teams of over a dozen leading oil producers and transporters."

Since Temple University's active involvement as a research and development partner of QS Energy began in 2007, both organizations have overseen installations of AOT technology on a 500,000 bpd (barrels per day) commercial pipeline, a 100,000 bpd condensate line, a closed-loop line at the Department of Energy's Rocky Mountain Oilfield Testing Center (RMOTC), and on a PetroChina pipeline facility in the Daqing oil fields. Independent testing organizations which include the Department of Energy and ATS RheoSystems, a testing company specializing in the effects of electrical fields on commercial fluids, have documented the efficacy of AOT in their reports included in numerous QS Energy S.E.C. filings (DOE AOT Project Test Results, ATS RheoSystems AOT Study Summary Report

According to data compiled by the Association of Oil Pipelines, the cost to transport crude oil or petroleum products by pipeline is roughly $3.00 to $4.50 per barrel, not including additional expenses associated with the use of diluents (thinners), drag reducing agents (DRAs), chemicals to suppress turbulence, and costly bulk heat to improve flow in pipeline infrastructure. Pipeline operators transport the majority of the world's crude oil output via 400,000 miles of crude oil pipelines globally. Here in the U.S., according to the Energy Information Administration (EIA) approximately 90 percent of the domestic daily production of 9.2 million barrels per day is moved through approximately 160,000 miles of crude pipelines.

Furthermore, additives such as diluents and DRAs add as much as 15 to 30 percent of the volume of feedstock, effectively reducing pipeline capacity by the same ratio. As Mr. Bigger stated in his most recent Q&A session with RedChip: "By reducing the amount of diluent and DRA on a per-barrel basis the AOT viscosity reduction system can improve operating margins while reducing operating costs."

With diluents accounting for upwards of $13 per barrel of additional cost for heavy bitumen, reducing the amount of additives used to transport heavy crude oil provides an easily defined net savings in operating expense. Dr. Rongjia Tao believes AOT offers the potential of both reducing pipeline operating pressure and contributing to the flow assurance benefits of the additives and adds that AOT has proven to be particularly effective with heavy crude oil with a high paraffin value or highly asphaltic nature. 

"When fully optimized, the AOT system has the potential to improve the efficiency of virtually any pipeline system, providing the opportunity for pipeline operators to drive more revenue based on applicable toll rates due to higher flow rates," said Mr. Bigger. "Given today's low commodity price in both the oil and gas vertical, some are now 70% off their highs."

Both QS Energy and Dr. Tao say they expect to see continued interest in the Pipeline Optimization analysis program from pipeline operators regardless of the price of oil. In January Temple University hosted executives from a large crude oil transportation firm at the Philadelphia campus to view viscosity reduction testing which has led to a proposed joint development agreement for a customized AOT installation in 2016.

According to Dr. Tao, the current low spot price environment has also resulted in renewed interest in the technology from earlier testing partners. Extensive evaluation of AOT on an active commercial pipeline in the Daqing Oilfield in 2012 was documented in an official China Petroleum Pipeline Administration (CPP) PetroChina (CNPC) Pipeline R&D Center Report which cited AOT's efficacy in successfully demonstrating "a breakthrough in crude oil viscosity reduction."

Within weeks of the spot price of crude oil hitting a new low of $30 per barrel last month, QS Energy's partner in China, Heng He Xing Ye Technology Development Corporation (TDC) re-established contact with Temple University after installing and testing variable frequency drive (VFD) systems in the Daqing oil field. Representatives at TDC then informed both QS Energy and Temple University that they are proposing an AOT system for consideration for deployment within the Daqing infrastructure. 

How AOT (Applied Oil Technology) Works:

AOT reduces viscosity by introducing a molecular conformational change phenomenon to the paraffin and/or asphalt content of the crude oil by using a function of electrorheology known as dielectrophoresis (DEP). By aggregating the paraffin and/or asphalt content of the crude oil to into sub-micron particulate matter clusters (known as a "conformational change"), the total surface area of these impurities are suspended in the base fluid of gasoline and diesel, which inherently reduces the drag of the bulk fluid.

Pipeline Operational Benefits of AOT:

(As documented by Temple University based on Department of Energy testing of a prototype AOT system at the Rocky Mountain Oilfield Testing Center)

Increased maximum flow rates = Increased toll revenues 

Potential to reduce power consumption = Reduced operating expenses for midstream pump stations.

Potential to reduce wear/tear on midstream pump and motor assemblies = Less procurement costs, less maintenance and reduced downtime

Potential to lower the pour point (mobility of oil) and wax appearance temperatures (WAT) = Reduction in use of heat and the potential to require less maintenance and pigging of the line

Potential to reduce the use of additives such as diluents = Reduced operating costs

For further information about QS Energy, Inc., visit www.QSEnergy.com, read our SEC filings at http://ir.stockpr.com/qsenergy/all-sec-filings and subscribe to Email Alerts at http://ir.stockpr.com/qsenergy/email-alerts to receive company news and shareholder updates.

Safe Harbor Statement: Some of the statements in this release may constitute forward-looking statements under federal securities laws. Please visit the following link for our complete cautionary forward-looking statement: http://www.QSEnergy.com/site-info/disclaimer

About AOT™ (Applied Oil Technology)

Developed in partnership with scientists at Temple University in Philadelphia, AOT (Applied Oil Technology) is the energy industry's first crude oil pipeline flow improvement solution using an electrical charge to coalesce microscopic particles native to unrefined oil, thereby reducing viscosity. Over the past four years AOT has been rigorously prepared for commercial use with the collaboration of over 30 engineering teams at 19 independent oil production and transportation entities interested in harnessing its proven efficacy to increase pipeline performance and flow, drive up committed and uncommitted toll rates for pipeline operators, and reduce pipeline operating costs. Although AOT originally attracted the attention of pipeline operators interested in improving their takeaway capacity during an historic surge in upstream output resulting from enhanced oil recovery techniques, the technology now represents the premiere solution for improving the profit margins of producers and transporters during today's economically challenging period of low spot prices and supply surplus.

About QS Energy, Inc.

QS Energy, Inc. (OTCQX: QSEP) provides the global energy industry with patent-protected industrial equipment designed to deliver measurable performance improvements to crude oil pipelines. Developed in partnership with leading crude oil production and transportation entities, QS Energy's high-value solutions address the enormous capacity inadequacies of domestic and overseas pipeline infrastructures that were designed and constructed prior to the current worldwide surge in oil production. In support of our clients' commitment to the responsible sourcing of energy and environmental stewardship, QS Energy combines scientific research with inventive problem solving to provide energy efficiency 'clean tech' solutions to bring new efficiencies and lower operational costs to the upstream, midstream and gathering sectors. More information is available at: www.QSEnergy.com.

Source: QS Energy, Inc.

Released February 17, 2016

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Current Price
Volume:
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SureTrader
PostSubject
#34819  Sticky Note It is true what homebrew says "its harder Zepellin 11/17/16 07:14:16 PM
#30394  Sticky Note A must read, watch & listen for all zerosnoop 08/04/16 11:59:22 PM
#28359  Sticky Note Fantastic PR this morning out by QS Energy zerosum 05/23/16 09:52:55 AM
#26330  Sticky Note From the Business Plan. AOT Case Study. This zerosum 02/11/16 08:05:48 PM
#2381  Sticky Note Board Warning - Please Read: IH Admin [Shelly] 04/17/13 10:43:08 AM
#35334   INCORRECT . Shareholders are waiting for the MASSIVE ROI zerosnoop 12/03/16 11:59:35 PM
#35333   ABSOLUTELY FALSE . Now we know that the zerosnoop 12/03/16 11:56:53 PM
#35332   NOT TRUE . The funds raised were used to zerosnoop 12/03/16 11:51:12 PM
#35331   INCORRECT according to the RECENT PR be zerosnoop 12/03/16 11:46:04 PM
#35330   ABSOLUTELY FALSE . From yesterdays 8K about the zerosnoop 12/03/16 11:42:47 PM
#35328   NOT TRUE . The sec has VERIFIED & APPROVE zerosnoop 12/03/16 07:08:44 PM
#35327   INCORRECT . Now we know why Mr Bigger was zerosnoop 12/03/16 07:01:18 PM
#35326   (a) <REDACTED> is required to provide the following: PumpersExposed 12/03/16 06:57:11 PM
#35325   ABSOLUTELY FALSE . The below is a very thorough zerosnoop 12/03/16 06:52:26 PM
#35323   It's obviously bc this Canadian company is PumpersExposed 12/03/16 06:40:37 PM
#35322   KMI must really be a bunch of morons.. PumpersExposed 12/03/16 06:34:46 PM
#35321   $50,000 for 5 days testing Smile AOT Works 12/03/16 06:31:30 PM
#35320   NOT TRUE . The filing states "All annual meetings zerosnoop 12/03/16 06:30:46 PM
#35319   No-one will.. because it is meaningless. Who knows PumpersExposed 12/03/16 06:29:16 PM
#35318   All annual meetings of the stockholders shall be PumpersExposed 12/03/16 06:23:05 PM
#35317   INCORRECT . Sales of the PROVEN AOT are zerosnoop 12/03/16 06:07:36 PM
#35316   ABSOLUTELY FALSE. REVENUE is FAST APPROACHING as per zerosnoop 12/03/16 06:02:21 PM
#35315   NOT TRUE. The PROVEN AOT, AOT XL, JOULE zerosnoop 12/03/16 05:55:54 PM
#35314   INCORRECT . The FACT is Don Dickson a [color= zerosnoop 12/03/16 05:51:21 PM
#35313   ABSOLUTELY FALSE . NDA's are in place to protect zerosnoop 12/03/16 05:46:54 PM
#35312   Accelerate? 100 x0 is still 0. Until these mr_sano 12/03/16 04:50:53 PM
#35311   new onsite testing program designed to accelerate the Smile AOT Works 12/03/16 02:46:29 PM
#35310   During the third quarter 2016, the Company developed Smile AOT Works 12/03/16 02:45:48 PM
#35309   Lol! Better shot at hitting the 100M lotto! mr_sano 12/03/16 12:23:13 PM
#35308   And of course I can call in and Tpsully 12/03/16 11:36:14 AM
#35307   I'm pretty excited Smile AOT Works 12/03/16 04:35:15 AM
#35304   ABSOLUTELY FALSE according to KINDER MORGAN[/co zerosnoop 12/03/16 12:14:44 AM
#35303   TC it will be. They've been lurking and DPS 12/03/16 12:12:59 AM
#35302   This is simply a ploy to keep the APJ 12/03/16 12:11:47 AM
#35301   NOT TRUE according to the RECENT PR below zerosnoop 12/02/16 11:59:47 PM
#35300   INCORRECT. The below is a very thorough Q&A zerosnoop 12/02/16 11:58:51 PM
#35299   ABSOLUTELY FALSE . The funds raised were used to zerosnoop 12/02/16 11:57:04 PM
#35298   NOT TRUE . The first invoice for $25,000 has zerosnoop 12/02/16 11:54:06 PM
#35297   well said Zerosum... whackywinston 12/02/16 11:47:26 PM
#35296   INCORRECT . From todays 8K about the "large" Canadian zerosnoop 12/02/16 11:44:21 PM
#35295   " ARTICLE 4 COMPENSATION 4.1 <REDACTED> shall pay Counterparty mr_sano 12/02/16 11:39:17 PM
#35294   ABSOLUTELY FALSE . The FACT i zerosnoop 12/02/16 11:34:24 PM
#35293   Granted the share price didn't spiral through the KC01905 12/02/16 08:33:46 PM
#35292   According to his LinkedIn Profile, John Valenti has pandavoine 12/02/16 07:50:08 PM
#35291   He has been working for the company since liedtoo 12/02/16 07:10:02 PM
#35290   From todays 8k filing "with a large Canadian mr_sano 12/02/16 06:28:37 PM
#35287   ABSOLUTELY FALSE as shareholders could have attended t zerosnoop 12/02/16 04:22:32 PM
#35286   As if the guy who scheduled a SHM IdiotsEverywhere 12/02/16 04:13:01 PM
#35285   INCORRECT . The shareholders meeting date has NOT been zerosnoop 12/02/16 04:09:31 PM
#35284   Don't forget it's also a lot cheaper to zerosum 12/02/16 04:03:57 PM
#35283   If he thought the SHM was going to IdiotsEverywhere 12/02/16 03:51:13 PM
#35282   hi Zerosum - i guess you are up whackywinston 12/02/16 03:24:05 PM
#35281   From todays 8k filing " with a large Canadian zerosnoop 12/02/16 03:22:01 PM
#35280   NOT TRUE . Now we know why Mr Bigger zerosnoop 12/02/16 03:15:18 PM
#35279   Interesting.... Somehow TransCanada does seem more likely than Enbridge, alkalinesolution1 12/02/16 03:11:03 PM
PostSubject