QS Energy Inc (QSEP)

[Flubug]

This may explain why the lease was terminated when it was back in July. The system worked but maybe not as well as they knew it could work. Maybe when they arrived at the site they saw that the power arrangements weren't ideal but they decided to put it on anyway. Needless to say, I don't think you can make a statement in a government document that the system "works" if it doesn't work. To what degree it works is now the question. Maybe STWA had to go back to its suppliers and order a new, custom built, power supply and its taken some time to get this thing to be made. TC agreed to keep the AOT on the pipeline running probably because its working well enough to save TC more than the $20,000/month its costing them every month on the lease.

But its my guess that TC and STWA both decided it could do better and now they are just waiting for the new power unit to see if if makes an improvement that may well determine maybe not so much whether its a keeper or not but rather how much they are going to pay.

My guess is that TC said back in July, "we see that the system works but we aren't going to pay X millions of dollars for it". STWA came back and said, Will you pay X millions if we put a better power supply on and increase the performance by y percent.

These are the kind of negotiations that are probably going on and may take a few months to sort out.