QS Energy's AOT Crude Oil Friction Reduction Hardware in Review Phase for Systemic Integration With Condensate Pipeline

Greggory M. Bigger, Chief Executive Officer and Chairman of the Board, QS Energy, Inc.Click here for high-resolution version

SANTA BARBARA, CA--(Marketwired - June 06, 2016) - QS Energy, Inc. (the "Company") (QSEP), a developer of integrated technology solutions for the energy industry, today announced its AOT (Applied Oil Technology) system will be benchmarked on a variety of super-light and ultra-light crude oil due to its ongoing positive evaluation on a major crude and condensate pipeline serving the Eagle Ford Shale in South Texas. In making the announcement, Greggory M. Bigger, QS Energy Chief Executive Officer and Chairman, stated, "In collaboration with our partner, we've mapped out the path forward to most effectively meet their objectives, which include laboratory testing of additional crude oil products followed by hydraulic analysis based on those results to determine the appropriate friction and viscosity reduction goals for our AOT system."

Designed to be installed adjacent to pipeline pumping stations, AOT subjects crude oil to a high-voltage/low-amperage electrical field to reduce its viscosity, which permits it to flow in higher volume. By integrating the AOT power supply with the hardware that controls and monitors a pipeline, typically situated in a remotely located control room, AOT will provide pipeline operators with the ability to monitor and react to real-time data to gain the best possible operational efficiencies.

"Upon delivery of our detailed use case study and cost-benefit projections, we anticipate integrating the AOT power supply with the pipeline's SCADA (Supervisory Control and Data Acquisition) system to provide remote operation of the AOT unit and automate its operation according to changes in the product transported," Mr. Bigger added. "QS Energy has also been asked to develop an installation-specific operational and systems handbook to gain maximum performance from the continuous AOT on a batch condensate system."

Initially installed on the condensate line last year, the customized AOT unit has undergone a rigorous value engineering process to achieve flow rates at levels predicted in earlier laboratory testing of samples of the ultra-light crude carried by the pipeline. Further viscosity reduction assessments of additional condensate samples are scheduled to be conducted at Temple University's Department of Physics, with hydraulic analysis of the additional data to be performed by QS Energy engineers.

"We're delighted that the recent performance review of AOT has resulted in an opportunity for us to demonstrate its friction reduction capabilities in a batched, multi-grade environment," Mr. Bigger added. "The industry's drive toward greater efficiencies and carbon neutrality demand technologies capable of reducing emissions related to the production and transport of crude oil while improving the economics of doing business in a lower spot price market. We believe AOT can play an important role in supporting our customers' commitment to producing energy more cost-efficiently and in an environmentally responsible manner."

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About AOT (Applied Oil Technology)
Developed in partnership with scientists at Temple University in Philadelphia, AOT (Applied Oil Technology) is the energy industry's first crude oil pipeline flow improvement solution 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 over 30 engineering teams at 19 independent oil production and transportation entities interested in harnessing its proven 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 interested in improving their takeaway capacity during an historic surge in upstream output resulting from enhanced oil recovery techniques, the technology now represents 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, Inc.

QS Energy, Inc. (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 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. More information is available at: www.QSEnergy.com

Source: QS Energy, Inc.

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