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Smile AOT Works

04/02/18 5:29 PM

#44063 RE: KC01905 #44061

One of the Company’s most interesting South American prospects has a defined need to increase capacity on pipelines transporting a very heavy crude typical throughout South America. This operator is weighing the benefits of AOT against the option of installing more pump stations while adding more diluent to its blend to meet its needs. A heavy crude oil sample provided by this operator was tested at Temple University in March 2018, demonstrating viscosity reductions of 50% and above at variety of temperatures from room temperature up to 160 degrees Fahrenheit. Duration testing indicated this crude oil maintains AOT-induced viscosity reduction well beyond 24 hours, retaining 85% of its AOT viscosity reduction 24 hours post-treatment. Preliminary analysis of laboratory results applied to this operator’s pipeline infrastructure indicates AOT could decrease reliance on diluent and increase flow rates, resulting in increased pipeline capacity of more than 20%. We are now working with this operator to detail the scope and terms of a potential pilot project.
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zerosum

04/02/18 5:35 PM

#44067 RE: KC01905 #44061

Absolutely not. There's nothing in the K to either get excited about or worry about. For those that worry about money, QSEP is having money thrown at them right now. They could raise funds at the drop of a hat if they wanted to, but they will only take money that is in shareholders best interest.

Sit back and let management do their job imo, they are making all the right moves right now. QSEP finally has an excellent management team in place.