QS Energy Inc (QSEP)

[Shrimclim]

Pie, I wasn't going to put this out there, but since you asked perhaps Smile and the rest of this board can take it apart for our collective edification.

We can extrapolate from this brochure what QSEP expects the selling price of the AOT to be in the open pipeline operator market. Here’s my math:

Least Case AOT Revenue/Savings = $52,520 per day X Payback Period of 730 days (2 yrs.) = $38.3 million Total Contract Value (TCV). The estimated length of the pipeline in the brochure example is 290 miles.

From prior analyses, we know that AOTs deployed fully across an entire pipeline are placed every 75 miles or so. 290 mi / 75 mi = 4 AOTs installed in this scenario.

$38.3 million TCV / 4 AOTs installed = $9.5 million per AOT if purchased or $400K per AOT per month if leased.

We can expect a 25% discount to Kinder Morgan because of all the help from their engineers and the patience their executive team has granted QSEP in order to commercialize the AOT to industry standards. Such a reasonable contract discount gives us the following AOT estimated final pricing:

AOT Purchase Price = $7.1 million per AOT installed
AOT Lease Price = $300K per month per AOT installed

Methinks this is going to get very exciting very soon. GLTA!!!