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07/17/19 11:55 PM

#48102 RE: mr_sano #48101

Jason Lane, Chief Executive Officer and Chairman of the Board, commented, "We are delighted to announce the appointment of Christopher Gallagher, who brings a wealth of relevant technical, engineering, international business and industry expertise. He has been responsible for bringing numerous products to market, brings deep industry relationships, and has an exceptional grasp of fluid mechanics, which will be of tremendous benefit as we advance our full-scale pilot program and seek to enter the commercial phase."


https://ir.qsenergy.com/press-releases/detail/2047














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07/17/19 11:56 PM

#48103 RE: mr_sano #48101

In late June, the Company completed installation and commissioning of its AOT demonstration project located on a commercial pipeline in the southern United States. The project was installed within budget, quality compliant, and without safety incidents.

"During the commissioning sequence, we checked all the boxes," said Shannon Rasmussen, Vice President of Engineering. "We ran a normal pre-start safety review, electronic checkout, data acquisition signal verifications, and mechanical inspections. Under full crude oil flow, the system was confirmed to have no leaks and no environmental issues were noted. Data collected during the full-flow startup phase confirmed internal differential pressures to be negligible and consistent with design specifications.

"In the meantime, Shannon Rasmussen and Dr. Christopher Gallagher have been working with oil samples pulled from the operating pipeline for testing at our Tomball laboratory facility. These tests are designed to confirm our target power requirements as accurately as possible and help us fine-tune enhancements planned for a new optimized AOT gridpack design we plan to test at the demonstration site as part of our continuing value engineering effort."

"I would like to express our gratitude to Dr. Gallagher, who recently joined our team and brings tremendous expertise in fluid dynamics. He has been invaluable helping advance both the field and lab work, as well as upgrades to optimize our system. Both Christopher and Shannon have worked tirelessly to ensure we are ready to launch with the recent enhancements, immediately upon receipt of the power supplies. We remain extremely encouraged by potential for the AOT system and look forward to providing further updates
."