INCORRECT according to the EVIDENCE from the latest shareholders update released RECENTLY. The PROVEN AOT will be sold WORLD WIDE as per the FACTS below
QS ENERGY CEO JASON LANE ISSUES SHAREHOLDER UPDATE
HOUSTON, May 15, 2018 (GLOBE NEWSWIRE) -- QS Energy, Inc. (the "Company" or “QS Energy”) (OTCQB:QSEP) is a developer of integrated technology solutions for the energy industry. The following is a shareholder update from Jason Lane, Chief Executive Officer and Chairman of the Board, QS Energy, Inc.
Dear Shareholders:
Over the past two months since our last shareholder update we have continued to make progress on a number of fronts.
SOUTH AMERICA
South America presents an incredible opportunity for our AOT technology. Crude oils throughout this region tend to be very heavy and are ideal candidates for AOT viscosity reduction. In March, we had the opportunity to test a set of oil samples from a prospective customer in this region. As expected, these samples were heavy crudes (~API 15°) with high levels of asphaltene and paraffin. The results of the Temple University laboratory tests on these oil samples are some of the best we have seen to date both in terms of viscosity reduction and the lasting duration of the effects of AOT. Tested across a range of operating temperatures, AOT reduced viscosity of these samples by 50% or more, with viscosity reduction lasting more than 100 hours. Applying laboratory results to detailed characteristics of this customer’s pipeline at a site under consideration for AOT deployment indicates AOT has the potential to increase flow rates and capacity of this pipeline by 30% to 40%.
In April, we entered into a non-binding letter of intent with a second South American oil company to test crude oil samples and, subject to laboratory results, negotiate and execute binding demonstration project agreements. This customer operates capacity-constrained pipelines, producing very heavy crudes (~API 8°) with high levels of asphaltene, and is currently relying on a combination of heat and diluent techniques to maintain production. Based on laboratory tests on similar crude oil samples, AOT should have a significant impact. They have expressed great interest in utilizing AOT to optimize production, increase efficiency, and boost revenue. Crude oils samples are being collected now and will be shipped to Temple University for testing in the very near future.
At the beginning of May, I travelled with Shannon Rasmussen, our VP of Engineering, to meet with these two customers, continuing discussions from our previous trip to further specify and identify potential AOT demonstration sites. Based on information gathered, we are now working with the customers’ engineers on detailed analysis of likely locations to determine final site viability and configurations.
While in South America, we had a follow-up meeting with a third crude oil company to discuss candidate demonstration sites, and introductory meetings with four additional companies in two of South America’s largest oil-producing countries. Each of these companies expressed continued interest in our AOT technology as a means to optimize production and transportation. These countries have immense heavy oil reserves and at today’s crude oil prices, production and revenue escalation is a top priority in both private and government sectors. We are also in discussions regarding non-pipeline applications including super tanker ship and semi-tanker loading and unloading facilities, presenting market expansion opportunities for QS Energy and our AOT technology.
ASIA
We are advancing on a potential demonstration project with an Asian oil company as discussed in our shareholder update letter dated March 19, 2018. There have been some delays due to management changes at the Asian oil company which have specifically delayed the site location process. Though delayed, this project is proceeding, targeting demonstration project operations before year end.
Canadian Grants
We recently applied for federal and provincial grants in Canada related to pipeline efficiency and GHG emissions reductions programs. Our goal with this project is to supply partial funding of a demonstration project at a Canadian partner site, providing white paper data in support of commercialization and industry acceptance. We are very early in this process, but I am happy to report we did make the first cut as one of 400 out of approximately 800 applicants chosen for further consideration. Over the next few months, the top 100 applicants will be selected and asked to present detailed project submissions for final consideration.
Summary
We are continuing to make progress on our 2018 targets for the installation and operation of one or more demonstration projects, with four customers at the site-location phase. In addition, we have begun to build supplemental relationships outside of the midstream market, with gaining interest in trucking and ocean shipping. Once again, we thank you for your support and we look forward to a great year.
Safe Harbor Statement Some of the statements in this release may constitute forward-looking statements under federal securities laws. Please visit the following link for our complete cautionary forward-looking statement: http://www.qsenergy.com/site-info/disclaimer
About Applied Oil Technology QS Energy’s patented Applied Oil Technology (AOT) is a solid-state turn-key system which uses a high volt / low amp electric field to reduce crude oil viscosity. AOT installs inline on crude oil pipelines, operates unattended without interrupting pipeline flow, with full remote monitoring and control. More information is available online at www.qsenergy.com/technology.
About QS Energy QS Energy, Inc. (OTCQB:QSEP), develops and markets crude oil flow assurance technologies designed to deliver measurable performance improvements to pipeline operations in the midstream and upstream crude oil markets. More information is available at www.qsenergy.com.
Company Contact: QS Energy, Inc. Tel: +1 844-645-7737 E-mail: investor@qsenergy.com Sales: sales@qsenergy.com
Investor Relations: QS Energy, Inc. Tel: +1 844-645-7737 E-mail: investor@qsenergy.com Source: QS Energy, Inc.
ABSOLUTELY FALSE according to all the GEMS & FACTS from the latest 10k filing. This is more ACCURATE & FACTUAL about the PROVEN AOT & KINDER MORGAN. NEXT
Veteran Pipeline Infrastructure Engineer Shannon Rasmussen Joins QS Energy To Lead Global Commercialization of AOT Flow Assurance Technology
HOUSTON, TX -- (Marketwired) -- 06/30/17 -- QS Energy, Inc. (OTCQB: QSEP), a technology solutions provider for the energy industry, today announced it has named Mr. Shannon Rasmussen as its new Vice President of Engineering, adding a key industry veteran who, along with new CEO Jason Lane, will help lead commercialization efforts for QS Energy's Applied Oil Technology (AOT) -- an integrated system that improves critical operational efficiencies for pipeline operators worldwide.
As co-founder and senior principal of Colorado-based energy consulting firm Citrine Energy, Mr. Rasmussen comes to QS Energy with nearly two decades of experience in the power and oil and gas sectors, with deep expertise in engineering design, project and program management, construction, compliance, and quality.
Mr. Rasmussen comes into this new role at QS Energy with critical knowledge of AOT and its demonstrated ability to reduce the viscosity of crude oil -- helping operators increase flow volume, reduce reliance on diluents, relax viscosity requirements, and meet carbon emission reduction goals while decreasing operating costs and improving pipeline efficiency. As a consulting engineer for TransCanada in 2014, Mr. Rasmussen experienced AOT operations first hand; in a similar role for QS Energy over the past two years, he helped spearhead critical design and fabrication improvements that have resulted in significant gains in AOT operating efficiencies, while achieving stable operations on a high-volume high API crude oil pipeline.
"I have seen first-hand what AOT can do for pipeline operators, and why it's critical to their long-term success," says Mr. Rasmussen. "I am thrilled to have the opportunity to expand on our initial success with AOT, help continue to improve and streamline it, and work with pipeline operators to bring this technology to wide adoption across the industry." Adds CEO Jason Lane: "Shannon's on-site experience with AOT, along with his deep industry expertise and contacts, makes him an ideal partner to help QS Energy bring these critical advances to an industry that needs them."
In addition to his recent on-site consulting with QS Energy, Mr. Rasmussen has served as a project - program manager and consultant for TransCanada Pipelines across a range of compliance-related projects including Keystone, Gulf Coast, KXL, and Energy East Pipelines. Mr. Rasmussen holds a B.S. in Mechanical Engineering from the Colorado School of Mines, is a registered Professional Engineer (PE), and a certified Project Management Professional (PMP). Mr. Rasmussen, along with his wife and three children, are looking forward to relocating to the Houston area.
Some of the statements in this release may constitute forward-looking statements under federal securities laws. Please visit the following link for our complete cautionary forward-looking statement: http://www.qsenergy.com/site-info/disclaimer
About Applied Oil Technology
Developed in partnership with scientists at Temple University in Philadelphia, Applied Oil Technology (AOT) is the energy industry's first pipeline flow improvement solution for crude oil, using an electrical charge to coalesce microscopic particles native to unrefined oil, thereby reducing viscosity. Over the past four years AOT has been rigorously prepared for commercial use with the collaboration of engineering teams at numerous independent oil production and transportation entities interested in harnessing its demonstrated efficacy to increase pipeline performance and flow, drive up committed and uncommitted toll rates for pipeline operators, and reduce pipeline operating costs. Although AOT originally attracted the attention of pipeline operators motivated to improving their takeaway capacity during an historic surge in upstream output resulting from enhanced oil recovery techniques, the technology now represents what we believe to be the premiere solution for improving the profit margins of producers and transporters during today's economically challenging period of low spot prices and supply surplus.
About QS Energy
QS Energy, Inc. (OTCQB: QSEP), provides the global energy industry with patent-protected industrial equipment designed to deliver measurable performance improvements to crude oil pipelines. Developed in partnership with leading university and crude oil production and transportation entities, QS Energy's high-value solutions address the enormous capacity inadequacies of domestic and overseas pipeline infrastructures that were designed and constructed prior to the current worldwide surge in oil production. In support of our clients' commitment to the responsible sourcing of energy and environmental stewardship, QS Energy combines scientific research with inventive problem solving to provide energy efficiency 'clean tech' solutions to bring new efficiencies and lower operational costs to the upstream, midstream and gathering sectors.
COMPLETE NONSENSE. More "INSIDER BUYING". Below is a recap of all the RECENT "INSIDER BUYING" by QS directors.
(1) On 8/5/2016 Don Dickson invests $70,000 in a Private Placement offering of convertible notes and warrants.
(2) On 10/13/2016 Don Dickson converts his note into common stock.
(3) On 4/17/2017 Dr. Eric Bunting invests $50,000 in a Private Placement offering of convertible notes and warrants.
(4) On 5/15/17 Richard Munn invests $10,000 in a Private Placement offering of convertible notes and warrants. He immediately converts the notes to common stock.
(5) On 5/15/2017 Richard Munn buys 42,000 shares of common stock in the open market at $0.24 per share.
(6) On 5/31/2017 Thomas Bundros invests $100,000 in a private Placement of convertible notes and warrants. He immediately converts the notes to common stock.
(7) On 7/19/2017 Dr. Eric Bunting invests an additional $40,000 to convert his warrants and stock options into common stock well before their expiration dates.
(8) On 7/30/2017 Don Dickson invests an additional $38,500 to convert warrants into common stock.
(9) On 8/2/2017 Gary Buchler invests $50,000 to buy common stock at market prices and convert all of his vested stock options.
(10) On 10/2/2017 Dr. Eric Bunting invests an additional $33,875 to buy 125,000 shares of common stock in the open market at $.271 per share. He also converts 178,002 of his newly vested stock options into common stock at an out of pocket cost of $12,460. This brings his total common stock holdings to 6,735,430 shares worth approx. $1.8 million at today's price.
(11) On 2/6/2018 Dr. Eric Bunting converts 179,710 of his newly vested stock options into common stock, well before their expiration date, at an out of pocket cost of $12,580.
(12) On 3/30/2018 Dr. Eric Bunting invests another $40,000 in a private Placement of convertible notes and warrants. He immediately converts the notes to common stock.
(13) On 3/30/2018 Dr. Eric Bunting invests an additional $18,000 to convert warrants into common stock, well before their expiration date.
(14) On 05/14/2018 Richard Munn invests an additional $5,500 to convert his 110,000 warrants into common stock.
All of the individuals named above are part of QSEP's Board of Directors. All of them are investing their own money in QSEP. While NDA's may prevent them from talking about the specifics of any particular corporate relationships, this is a powerful alternative way to express just how confident they are in QSEP's immediate future.
I've emphasized the word immediate because I think the motivation for early conversion of 10 year stock options is based on a strong belief that the stock will be going substantially higher in the near term. This early conversion will reduce the future tax burden substantially if that were to occur (long term capital gain instead of ordinary income).
The "bargain element" of a stock option is taxed as ordinary income while the remaining gain is taxed at the lower capital gains rate. Exercise of a stock option while the underlying security price is low insures that the "bargain element" will also be low allowing for the best tax outcome (the bargain element is the difference between the price at the time of exercise and the grant price). For the owner of a QSEP stock option it requires a very powerful incentive to give up a 10 year "free look". A savvy investor would hold onto a stock option as long as possible, exercising and putting up money only at a time when the outlook was so positive that it is likely to move the stock substantially higher. Anybody exercising their stock options today must feel now is that time.