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zerosnoop

09/18/22 11:47 PM

#52643 RE: mr_sano #52641

Based on the confirmation of these most recent and positive results using the fully assembled AOT, a medium gravity pipeline spec oil (API 23) was procured and pumped into the AOT. We ran the AOT with the reworked original grid pack for an hour at 10 kV and saw no anomalies and no short circuits, confirming our belief that the short condition was a result of failed insulation. We were then able to apply 20 kV to the oil despite utilizing a reworked original grid pack. This high voltage result seems to demonstrate that we have solved the problems reported in June of 2020. Subsequent testing in the laboratory showed the oil (API 23) would support a voltage of 40 kV. Between the laboratory data and issues found during recent component testing we are in the process of confirming the final design criteria for a new grid pack which represents the remaining 20% necessary for full treatment effect.

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zerosnoop

09/18/22 11:49 PM

#52644 RE: mr_sano #52641

ABSOLUTELY FALSE according to the GEMS & FACTS from the latest 10Q filing

We have also validated that a new design concept for the grid pack will reduce arcing and allowed us to apply full voltage during a recent test. A 3rd party engineering firm with proper experience and three-dimensional modeling software was engaged.

In August 2022 we completed the testing of the stack assembly. The stack assembly did not suffer the arcing problems we saw when testing a stack assembly made from parts of the full size AOT. It appears that we have accomplished the goal of eliminating the sources of arcing that prevented us from achieving treatment voltages with this new design.

The power supply did not shut down due to arcing nor any other issues and we were able to test the stack assembly up to 40 kV in oil; the maximum output of the power supply. While we do not expect to see free water in pipeline quality crude oil, we wanted to see the effect of free water on the stack assembly. We added sufficient water to disrupt normal operation, but we were able to slowly increase voltage to treatment voltage over a time. This gives us confidence that if water were to enter the system, we would be able to return a full size AOT to normal operating conditions.

we would also consider designing, testing and commercializing a smaller scale AOT unit targeting upstream, trucking and rail applications. This strategy could reduce development time and costs, with the intention of moving back into the midstream crude oil pipeline market subsequent to successful commercial operations at a smaller scale.

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09/18/22 11:55 PM

#52648 RE: mr_sano #52641

NOT TRUE according to the FACTS from the latest shareholders update below

https://s3.amazonaws.com/content.stockpr.com/qsenergy/files/news/2022/Component_Testing_August_9_2022.pdf


Increasing Confidence

As stated in our previous “July Upcoming Component Testing” update, we anticipated that by August we would be conducting the component testing. As of August 8, 2022, we completed a successful component test. All parts arrived from our vendors last week and we built the stack assembly. All the parts fit as designed with no surprises.

The stack assembly performed as expected. We were able to apply the maximum voltage of the power supply to the stack assembly when submerged in oil. With this updated design, the power supply did NOT shut down due to arcing nor shorting which occurred with the previous design during various testing regimes. We achieved exactly what we hoped to and will now proceed to the hydrostatic test.

Cecil Bond Kyte said “I could not be happier with the results. We have validated the design changes which addressed the problems identified in the component testing of the prior design and I am looking forward to a positive hydrostatic test. We did what we said we would do and will continue to do so.”