QS Energy Inc (QSEP)

[mr_sano]

The complete quote below isn't as optimistic. Appears on page 17 and starts with:
"it is unlikely Kinder Morgan would use the AOT at the original test location or other condensate pipeline"


https://www.sec.gov/Archives/edgar/data/1103795/000168316819001581/qsenergy_10q-033119.htm

In February 2016, the modified AOT equipment was installed at Kinder Morgan’s facility. Pre-acceptance testing was performed in April 2016, culminating in more than 24 hours of continuous operations. In-field viscosity measurements and pipeline data collected during this test indicated the AOT equipment operated as expected, demonstrating viscosity reductions equivalent to those measured under laboratory conditions. Supervisory Control And Data Acquisition (“SCADA”) pipeline operating data collected by Kinder Morgan during this test indicated a pipeline pressure drop reduction consistent with expectations. Results of this test were promising, however due to the short duration of the test and limited data collection, definitive conclusions regarding the AOT performance and its impact on pipeline operations could not be reached. Based on final analysis of in-field test results, SCADA operating data and subsequent analysis of crude oil condensate samples at Temple University, it is unlikely Kinder Morgan would use the AOT at the original test location or other condensate pipeline. Kinder Morgan has expressed interest in AOT operations at one of their heavy crude pipeline locations subject to results of other AOT demonstration projects and has provided the Company with additional crude oil samples which have been tested at Temple University for future test correlation and operational planning purposes. The Kinder Morgan Lease is currently in suspension and lease payments have not yet commenced.