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It’s an easy call to make predicting the moves by Qsep management. Basically another feel good speech tossed out by the new leader as glorious achievements while investor ownership is in high gear dilution. The company did trim its cash burn to 100k a month last Q but the payables and liabilities side is ballooning. A 100k per month doesn’t even begin to pay the obligation that are on the books accruing interest today!
Insiders must have got an early glimpse of the 10Q due out in 4 days. no word of new note sales to keep the lights on means they are again scratching for cash! Conveniently LAnes has put off any real milestones until July which means they can keep silent until Q3 due Nov 15th. By then it is certain that more delays will just happen to pop up!
Street likes the adwhiz acquisition
Lol! Market goes up....oil rallys yet Qsep just sits there converting more notes to keep all those valuable licenses and grant funds flowing to Tao and Temple. It’s absurd to think that over a 100k a year goes towards paying for the fuel injection device license which couldn’t even produce a single sale into a third world country or US auto /motorcycle SEMA aftermarkets! How on earth will they be taken seriously by operators especially after numbing two major tests. It’s curious there is no line of auto products especially since Qsep spent in excess of 40 million dollars to supposedly develop this revolutionary auto bolt on attachment that would save the planet! ( chuckle)
No doubt p has not preformed but I think the street likes the acquisition. Time will tell. They do burn cash at an alarming rate.
I think the acquisition helped!
“Announced acquisition of AdsWizz, creating the largest digital audio advertising ecosystem globally”
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No posters making outrageous statements and the company is almost borerish when it comes to providing news updates. “
Boring Really? Tcpl flagship pilot terminated after 90 days and Kinder Morgan stalled years after it was installed and reworked!
Qsep misrepresented this contracts status for years and even though management finally admitted the Kmi pilot lease was in suspension they still laced it with the notion that Kmi might move the rig. Well they need to pay for for it first!
I don’t think there is any question that Qsep stock has been manipulated heavily in the past so it’s rather disingenuous to suggest that past management has no relevance on these discussions.
Kyte before Bigger pointed to profitability with its auto device Elektra almost a decade ago and then switched gears to Aot. Bigger did a lateral move to qspool after with a promise of acquisitions that would take advantage of depressed energy assets and provide an actual revenue source . Now both are gone and the qspool consultant has been at the helm for 12 months promising a roll out of more “pilot” programs. I like to know when management expects Qsep to be a real business rather than a college professors fully financed hobby experiment.
Please...adding nano silica to crude has been studied. The junior profs that ran Tao’s work in the Middle East did so with the addition of nanosilica which has been shown as exhibit in the study below which claims 52% reduction with no ediluent(chuckle).
Besides all these tests cited are done at flowrates which would make any claim meaningless in a real world pipeline application.
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Experimental and Theoretical Study of Viscosity Reduction in Heavy Crude Oils by Addition of Nanoparticles
Esteban A. Taborda, Camilo A. Franco, Marco A. Ruiz, Vladimir Alvarado*§ and Farid B. Cortés*
*E-mail: valvarad@uwyo.edu.*E-mail: fbcortes@unal.edu.co.
†Grupo de Investigación en Fenómenos de Superficie - Michael Polanyi and ‡Grupo de Investigación en Yacimientos de Hidrocarburos, Facultad de Minas, Universidad Nacional de Colombia Sede Medellín, Kra 80 No. 65-223, Medellín, Colombia
§Department of Chemical Engineering, University of Wyoming, Dept. 3295, 1000 East University Avenue, Laramie, Wyoming 82071, United States
Energy & Fuels
Vol. 31: , Issue. 2, : Pages. 1329-1338
Publication Date (Web): January 10, 2017
https://doi.org/10.1021/acs.energyfuels.6b02686
Heavy and extra-heavy oils generally exhibit high viscosity, which is detrimental to their production, transport, and refining. The oil and gas industry has thoroughly investigated the use of chemical agents to improve the mobility of this type of low-quality crude oil at the surface as well as reservoir conditions for many years. In this sense, the main objective of this paper is to provide unexpected experimental evidence of heavy oil and extra-heavy crude oils viscosity reduction resulting from the presence of nanoparticles (NPs) of different chemical natures (SiO2, Fe3O4, and Al2O3), particle size, surface acidity, and concentration at low-volume fractions. The viscosity of the enhanced fluids was measured using a rotational rheometer at shear rates varying between 1 and 75 s–1. Upon addition of nanoparticles, viscosity reduction was observed in all cases evaluated. However, the maximum viscosity reduction of roughly 52% was obtained at a concentration of 1000 mg/L with 7 nm SiO2 nanoparticles at shear rates below 10 s–1, contrary to expectations from Einstein’s viscosity theory in particulate systems. A mathematical model based on a modification to Pal and Rhodes Model for the viscosity of suspensions is proposed in this work. The said model that relates the concentration of nanoparticles to the fluid mixture viscosity was validated successfully using experimental data, as evidenced by RSME% values lower than 10%. The importance of our findings lies in the lack of previous experimental and theoretical data in the open literature showing heavy crude oil viscosity reduction in the presence of nanoparticles.
Not at all. I’m simply stating the obvious. I’m have very low confidence in the actual scientific merit of any device associated with this company but nobody is right 100% of the time. The point was and remains: In the unlikely event they have found something it will still take many more years to develop into a legitimate business. Meanwhile major market opportunities are here and now! The opportunity cost of investing in Qsep outweighs any possible ROI cooked up by dreamers!
“Wait” being the operative word!
Even in the best case scenario where by hook or crook Lane & company stumbled on to some niche requirement AOT could fill, they will still need years to generate a revenue model that would cover the annual SG&A.
The talk of systemwide integration after a pilot within a few months is a sugar plum fairy dream. If they get one unit placed in a free test this year there will be a victory parade. Management would be thrilled and happy to influence investors to present these ideas as they were happy to make house calls to pitch private placements.
Characteristically “Suspension nowhere near your post. Shameful disinformation directed by Qsep n
I prefer more recent disclosures made public in the last 10k which this reply has conveniently omitted which clearly states:
“The Kinder Morgan Lease is currently in suspension and lease payments have not yet commenced.”
Paradox or not this ain’t exactly a slap on the back so it’s curious why this failed pilot keeps being promoted as some active project when in actuality the contract that supposedly binds both parties is null and void and while Kmi received several rounds of Aot installations Qsep never received a single dollar of consideration to consummate the deal. Honestly nobody is buying the pre inspection or Scada nonsense. It been shown how management morphed the acceptance terms from a startup safety test to something completely different. In my universe the cat died 12 years ago!
lol! This Qsep human comedy never ceases to amaze!
The analogy is good when applied to to Qsep management and the manner in which this company discloses material events. Today, like years past they still float the fantasy that the KMI rig will be moved to another location when the truth is that the contract was snuffed out long ago and the rig did not run longer than a day or two. I read every week from edited cut & past excerpts from the 10k how this rig is simply waiting to be redeployed but everyone knows this is a deception. Certainly not a transparent response and likely the rig is back in Tomball collecting dust at the newly erected AOT hall of fame. However Qsep will not admit it until they have some other diversion to take the heat off then perhaps they they will issue more than the quip about the contract being in suspension!
As far as Lane is concerned I wouldn’t put any trust in anything this company does until they can score a legitimate ongoing revenue producing placement. He was unable to acquire any assets under his qspool scheme which he was brought in as a paid consultant! Qspool went the way of every product ever fielded by this company. If he was so on point he would have gone deal that at minimum would have generated done ongoing cash. Instead they cancel it and write off the expense forming the pool.
Qsep is about as transparent as a mirror! As long s they have crew of social media operatives and a whack scientist that has no issue with putting up BS scientific claims that can’t be directly attributed to Qsep management, then they can just sit back and pretend they are legit business. Even a cursory examination of disclosures shows how the charade continues.
The dilutive effects of all the note conversion and the need to continually raise more cash to pay ridiculous licensing fees and contract obligations and salaries/benefits is now becoming toxic. The weight of the millions of shares unlocked each Q is equal to a fluffy Twinkie the size of Manhattan!
Sorry if Iraq U is so high on Aot then the “ Basra” agreements touted under Bigger would have produced something If value other than a bowl of steam! Honestly this report is just another lab test that proves nothing at this flowrate. It’s like trying design an full size airfoil from a scale model that completely ignores the Reynolds number relationship.
Nope here is where QSEP is:
qsep CASH BURN CASH BURN
YEARLY MONTHLY
2017 $1,786,000 $148,833
2016 $1,676,600 $139,717
2015 $2,590,457 $215,871
Dude..sorry if this is the first time hearing this but by all accounts and standards of measurement Qsep has been a complete failure with the only exception being it’s ability to continue to raise money even after a string of commercial North American failed tests which did not generate any further reoccurring revenue.
The old conspiracy theories resurface when pros have no defense against basic logic. It’s so entertaining to watch as they scurry around to try to convince investors that any derisive or negative discussion is all just a effort by industries that want to crush Qsep or that they are afraid of the awesome power of the pipe to disrupt established methods. Actually imo any fundamental discussion is to the benefit of shareholders and if it wasn’t for the few demanding answers then Qsep would not even respond. Even so they still shroud all the bad news in secrecy yet they promote fluffy no news as legitimate events!
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All the signs are there. QSEP couldn't be giving one any more blaring signs to tell you now is the time to get in.
“
So a 500k unit purchase order by Vietnam was a screaming buy right up to the point where it was determined it was fake. Then magchgr had rave reviews but that was fake too. Then there was Elektra which which according to Kyte was going make Qsep profitable but management decided to scrap all of it to pursue Tao other whacky invention the magic pipe. Then China gets a complimentary free look and is never heard from again... then they actually get a US test which gets dumped 90 days after they turn it on for a day or two....then they get another supposed pilot which disappears in a cloud of smoke and nonpayment. Well the message is “blaring” outright but it ain’t “buy buy buy”!!
The best OTC opportunity comment was actually the funniest thing I have heard week. Thanks for the chuckle!!
Read the news. Pipeline industry is getting hammered from north and south.
“Kinder Morgan said on Sunday that it suspended most work on the $5.8 billion Trans Mountain Expansion.”
I hate to say it but your arguments get weaker by the day.
You're suggesting they pound the table like a gorilla and say buy or else.
Come on!
"And this team as I've asked you before for motive is what, dump some shares here and there.
Get their buds to fund this?
Well what is it as you never answered the first time? Fill the Jason warehouse lease.
Interesting you even know this... "
“That's why they created the preferred class shares, so they could fund the company and AOT build outs at the same time being minimally dilutive to shareholders. The preferred shares will likely never be converted to common stock, and if they are, it will likely be years before the maturity dates. Imo they are nearing the last days of private placements and convertible notes = very bullish. “
Well first off nano penny stocks like Qsep are not suitable to raise preferred shares because they don’t have the cash to support paying a reasonable dividend. If it’s just a conversion of shares then it’s simply another way to issue cheap common shares but camouflage it through this instrument. It’s the fingerprints of the CFOs creative work and he has learned well how to keep the ball rolling. Qsep has basically been operating in an insolvent mode teetering back and fourth between raises for years so I guess you got to give credit where credit is due. Qsep has done one job extremely well and that is its ability to continually raise money year after year even after failing to get any market adoption beyond a field test that failed to meet its end points. The shareholders however WILL be left holding the bag in end but at this point anyone not knowing that should not be gambling with the trust fund dollars in this equity .
100k a month or 200k doesn’t matter at this point. No sense in splitting hairs. I have detailed the historical averages. The fact is clear that Qsep needs to continually sell either convertibles or a similar instrument to finance any continued operations going forward. There is no sales to speak of and only possible future tests where prospect operators can kick the tires! Really Qsep?
Well Two licenses were signed in 2007 yet Aot wasn’t revealed until
4th Q 2008. At that moment 5M had already spent on R&D and 29M in operating expenses!
After 10 years of Temple not seeing royalties on sales and continuously having to chase down Qsep to pay them what they agreed...it’s difficult to believe they didn’t immediately move the license to another company....unless of course they know it’s worthless. Finally the most important fact is they simply do not not have the money to pursue both.
“Over $500k has been written off by Temple University. The balance sheet will look much better now. NEXT “
The MRQ and K shows how that theory worked out! Qsep Balance sheet is in free fall. Maybe pros will take stab at explaining why the myth busted fuel economy devices are still being licensed to the tune of a $125k per year every year when the company spends all its raised cash in the 2 Qs!
Race car driver
Sema exec
Famous attorney and sidekick
Shelton
McKinnon
Kyte
It goes on and on....
Organized window dressing. Since no company is willing to outright buy Qsep or conduct any business with them then one can only conclude this insider activity is for appearance only and the only source of cash raising. Lane himself admitted he needed to firm the picture so companies would feel ok about doing business with them but they didn’t get that much money and they are still pissing through it at an alarming rate! All the convertibles cash sold in 1st Q 2018 is now gone and while last year the company diluted shareholders over 20% this year will be much more.
Beware of the suggestions that investors sit back and go along for the ride! It will be a one way trip to the poor house!
Insider buys when support by product performance can be bullish but Qsep has done anything but prove its
iP or its value to industry. Day after day we hear how this is going change the way oil is transported but it’s just pure fantasy until management can get a single paying customer. This will require them to get one unit going then add another then 5 more etc. The discussion that operators are on the verge of a full line integration based on a 60 pilot test is not based in reality. It’s just a teaser to entice those on the fence.
“ $100,000,000 in revenue possible in 2019. $10,000,000 would be fantastic. $100,000,000 is wild. “
Gravity fed through a capillary tube at laminar flows is meaningless to pipeline operators. All pipeline operators that would be potential customers will be pumping at high psi and the flows will be turbulent at high RE and high psi. This report is written probably by an ex student of Tao looking to join the gravy train of pseudo scientists...besides a lab experiment is no where near what happens in the field with upstream and downstream pressure differentials and various batching complications. It’s amazing that after 12 years of trying the best shareholders get is this rework of Tao’s lab experiment. Shameful!Company cannot succeed with this guy as the technical director. He is just not a seasoned product development engineer and it shows!He looks for headlines and then defends statements with shoddy science. Temple has no idea the brand damage they are doing!
Tcpl is dead. No longer is it mentioned other than to build the fluffy backstory, which frankly is getting a but long in the tooth. Even diehard pros must wince when they hear the old theory “continues interest” nonsense. That deal went into the circular file cabinet along with Elektra other every other deal that was promised.
Oh and I bet shareholders don’t give a rats ass about Qsep’s fake accomplishments only that they can achieve actual sales not a mere free pilot program here or there. The excuse that NDAs supposedly prevented Qsep from sharing data and conquering the world is a “cartoon” explanation of what really went down. Company don’t be taken seriously until they come clean.
The R & D expenditures have dropped because the PROVEN AOT is ready to be sold WORLD WIDE according to the EVIDENCE in the latest shareholders update released RECENTLY.
Year R/D OPEX RD +% OPEX+%
2017 12.8 74.1 1.59% 4.07%
2016 12.6 71.2 2.44% 3.04%
2015 12.3 69.1 5.13% 4.38%
2014 11.7 66.2 9.35% 5.08%
2013 10.7 63 32.10% 22.09%
2012 8.1 51.6 8.00% 16.74%
2011 7.5 44.2
Wow...temp controls on a test rig...what an innovation!Just like sending Tcpl a giant pipe with an inadequate power supply! This crew is the gang that couldn’t shoot straight. Maybe they will just plug in the rig into the flat bed’s cigarette lighter! Adding temp control is not news worthy but more of an excuse as Cenovius hasn’t pulled the trigger and obviously questioned why there was no temp control on the mini magic pipe! This company would spin its last dime and say it’s a perpetual motion machine but that ain’t getting any attention except maybe from a few new investors not willing to weed through 88 pages of complete 10k story telling and fall for the concept Qsep has real technology.
Real Cash data tells the story! As shown the combustion of dollars continues. 12 period monthly average for 2017 was $148,833 per month. The same average for 2016 is $139717. Clearly, cash is still being consumed at a higher rate no matter how you look at it. Then to add insult to injury R&D was a paultry 243K for the entire year! 2017 Operating expenses were 2.9M!!!! Bigger's severance is larger than what was spent on the total R&D expenditures for all of 2017! Don't be fooled. Follow the numbers.
2017 and 2016 Actual Cash burn data as reported by QSEP
2017 Cash used totals by Q monthly average monthly Q/3
10K-Q4 1786000 $391,000 $130,333
10Q3 1395000 $630,000 $210,000
10Q2 765000 $594,000 $198,000
10Q1 171000 $171,000 $57,000
$1,786,000
Monthly average over 12 month q/12 monthly average $148,833
Q aver monthly Q/3
2016 10K 1676600 $275,600 $91,867
10Q3 1401000 $480,000 $160,000
10Q2 921000 $403,000 $134,333
10Q1 518000 $518,000 $172,667
$1,676,600
Monthly average over 12 month perion (Q/12) $139,717
“ QSEP is having money thrown at them right now. They could raise funds at the drop of a hat if they wanted to, but they will only take money that is in shareholders best interest.
“
Absurd. Equity ownership was diluted 22% in 2017. They are fire simply selling ownership! All the cash raised in 1st Q 2018 plus the end of the years cash is now almost gone. Shareholder negative equity is ballooning along with liabilities...But the company still insists on paying a perpetual maintenance fee on a separate (non AOT) license for a fuel injection auto device which management readily admits is no longer in development. Wtf is that! Why pay 100k a year for some BS product that never made it past the smell test. Honestly the only change i can see after a year of fiddling is that Lane got some good old boys to invest but all the moves are the from same playbook . For those who believe no rent was ever paid for Lanes warehouse it’s now confirmed he now gets $1500 month on month to month basis!! Again...Wtf is that!
Public companies don’t move into a building without a 3-5 year lease and now suddenly reporting it as a month to month deal lease demonstrates that current management maintains the same level of “ slime” as those that came before. Still vague on KMI status even though they admit it’s in suspension. As long as management circles around the truth not many will take them seriously.
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As of December 31, 2017, total unpaid fees due to Temple pursuant to these agreements are $842,000, which are included as part of Accounts Payable – license agreements in the accompanying consolidated balance sheets. With regards to the unpaid fees to Temple, a total of $36,000 are current, $376,000 are deferred until such time the Company achieves a revenue milestone of $835,000 or upon termination of the licensing agreements and the remaining $430,000 are deemed past due. The past due amount of $430,000 is owed pursuant to the First Temple License. The Company is currently in negotiations with Temple to settle or cure the past due balance.
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Wow.., so much for cleaning the slate! Qsep wizards have decide to keep the fuel injection license active which costs over 100k a year in maintenance fees!
It’s out and it’s ugly...no wonder they released it After hours.
Must be some fantastic news that must be buried in the 10k as Qsep is apparently waiting to the absolute last minute to release it! Well they have another 4 hours to cut paste! Let’s see how much occurred for 2017.
Prrlimary approval for a test! Wow send up the flares but unfortunately that’s not the same as having an actual business which produces sales and profits.
I have heard the many sales predictions made by Qsep directors over the years none has ever come to fruition. The Tcpl and Kmi pilot test may have been successful in the minds of Tao and management but the results they achieved was not enough to sway either party into an extension or long term lease. In fact, the Kinder Morgan contract was never paid for! No getting around the results here! No sales after conservatively 12 years of trying means either the device does not work or Qsep management is woefully inept. Either way is not recipe for a successful long term result.
Corporate fluff that been fooling shareholders for decades. If I got burned more than once on an equity that’s been promising results yet never delivered since its inception in 1998, it’s would be absurd to consider that they “might” be straight shooting this time around. It’s also mind blowing that the revolving door of executives is always given another chance along with a blank check of new equity diluting shares to sell to raise more cash so they can promise to work on getting another test!