QS Energy Inc (QSEP)

[neirbokj]

Assuming STWA achieve an improved flow of 7.5%, their “far value” profit share is 10% of the savings and STWA achieve new accounts at the rate shown below … the share price based on a PE of 10 is as shown from $1 at Dec 2014 to $22.60 at Dec 2020 …


Assumptions
Pumping 000k barrels per day 500 750 1000
Operator Revenue $M/day @ $15/barrel 7.5 11.25 15

Value of Improved flow @ 5% 0.375 0.5625 0.75
STWA Fair value earnings $M/day @
5% 0.01875 0.028125 0.0375
10% 0.0375 0.05625 0.075
20% 0.075 0.1125 0.15
30% 0.1125 0.16875 0.225

Improved flow@ 7.5% 0.5625 0.84375 1.125
STWA Fair value earnings $M/day @
5% 0.028125 0.042188 0.05625
10% 0.05625 0.084375 0.1125
20% 0.1125 0.16875 0.225
30% 0.16875 0.253125 0.3375

Improved flow 10% 0.75 1.125 1.5
STWA Fair value earnings $M/day @
5% 0.0375 0.05625 0.075
10% 0.075 0.1125 0.15
20% 0.15 0.225 0.3
30% 0.225 0.3375 0.45

Year to Dec Accounts $M
2014 1 20.5 30.8 41.1
2015 .. Assuming 1 new name account
2 41.1 61.6 82.1
2016 … Assuming 2 new name account
4 82.1 123.2 164.3
2017… Assuming 3 new name account
7 143.7 215.6 287.4
2018 … Assuming 4 new name account
11 225.8 338.8 451.7
2019 … Assuming 5 new name account
16 328.5 492.8 657.0
2020 … Assuming 6 new name account
22 451.7 677.5 903.4

Est SP range at PE of 10 with 200M shares
2014 1.0 2.1
2015 2.1 4.1
2016 4.1 8.2
2017 7.2 14.4
2018 11.3 22.6
2019 16.4 32.9
2020 22.6 45.2

E&OE