QS Energy Inc (QSEP)

[Shrimclim]

Thanks, PIE, for the link!

Kinder Morgan Crude and Condensate LLC (KMCC) and Double Eagle Pipeline LLC, a 50/50 joint venture between Magellan Midstream Partners, L.P.

End to end from Cotulla, TX to Houston, TX, it's +/- 300 mile pipeline. If we assume AOTs placed every 50 to 75 miles, we get (5) AOTS needed to support this pipeline.

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

If we use my earlier calculations from above along with some business logic, we get a 1st phase initial contract of (2) AOTs to support the KM half of the pipeline from the Helena Station to Houston, TX.

Estimated Contract Value = 2 X $7.1 million = $14.2 million.

2nd phase installation on the Magellan Midstream half from Cotulla, TX to Helena Station, might require (3) AOTs for support.

Estimated Contract Value = 3 X $7.1 million = $21.30 million.

TOTAL Guestimated Contract Value = $35.5 million