QS Energy
QS Energy, Inc. (OTCQX: QSEP)
COMPANY OVERVIEW
QS Energy, Inc., develops and commercializes energy efficiency technologies that assist in meeting increasing global energy demands, improving the economics of oil extraction and transport, and reducing greenhouse gas emissions. The Company's intellectual property portfolio includes 48 domestic and international patents and patents pending, which have been developed in conjunction with and exclusively licensed from Temple University.
QS Energy is working in collaboration with Newfield, SRI, Dr. Carl Meinhart, and manufacturing partner to design and build an AOT™ prototype unit for operations in the upstream crude oil pipeline market (“AOT™ Upstream”), specifically configured for pipeline operating factors observed at Newfield’s Utah site.
ABOUT QS ENERGY INC / AOT OIL TECHNOLOGY AND JOULE HEAT SYSTEM
QS Energy, Inc. (OTCQX: 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 efficienct “clean tech” solutions to bring new efficiencies and lower operational costs to the upstream, midstream and gathering sectors.
The Company’s intellectual property portfolio currently includes 48 domestic and international patents and patents pending, which have been developed in conjunction with Temple University. QS Energy has an exclusive licensing agreement, in perpetuity, with Temple. QS Energy is the developer of two types of patent-protected industrial equip- ment designed to deliver measurable performance improvements to crude oil pipelines. QS Energy’s flagship product AOT™ (Applied Oil Technology) reduces the viscosity of oil by applying an high intensity electrical field to the feedstock, allowing pipelines to operate at a lower pressure and transport crude oil more efficiently. Joule Heat is an energy efficient crude oil heating technology, also based on the direct application of electricity to oil, which improves flow and pipeline performance with less power and in a smaller form factor than existing trace heating solutions. Through its wholly owned subsidiary, QS Energy Pool, QS Energy looks to make accretive acquisitions of complementary entities or product lines in the oil & gas sector. Effective August 11, 2015, Save The World Air, Inc. changed its name to QS Energy, Inc., with a new trading symbol “QSEP”. This new name - QS Energy - embodies the Company’s “quick strike” philosophy, which is fundamentally at the core of its value proposition as it executes on parallel growth strategies within the global oil & gas sector.
QS Energy has conducted multiple analyses in conjunction with various partners that prove the financial benefits of AOT™ stemming from reduced viscosity for petroleum pipelines. Recent, preliminary analysis for a major Persian Gulf pipeline, for example, suggests that AOT can decrease crude oil viscosity by 20-25%, thereby increasing pipeline capacity by 400,000-500,000 barrels per month. Even assuming a conservative viscosity reduction figure of 15%, pro forma analysis demonstrates an annual benefit for the operator, net of AOT operating costs, in excess of $5 million. The value of increased pipeline throughput is based on an estimate of value added to operations calculated on a tolling fee or effective-tariff basis. Typical rates or tariff fees charged by global pipeline operators range from approximately $2.00-$3.00 per barrel. A projected 20-25% decrease in viscosity provided by AOT would lead to gross benefit for the operator of $560,000-$700,000 per month, or $6.7 -$8.4 million annually.
QS Energy is a revenue generating company with a solid cash position, clean balance sheet and a proven ability to develop and deliver industrial-grade equipment that support the company’s mission and enhance shareholder value.
ABOUT QS ENERGY POOL / MERGERS AND ACQUISITIONS STRATEGIES
QS Energy has initiated the first step of its mergers & acquisitions plan as it looks to acquire complementary entities or product lines that will drive future shareholder value through its special purpose vehicle, QS Energy Pool. The exploration & production ("E&P"
and oilfield services industries are incredibly capital intensive, and the recent surge in global oil & gas production has seen these industries to be even more so. The majority of the uptick in production stems from unconventional drilling and completions to extract petroleum products from both shale and tight sand formations. Onshore wells drilling these formations typically cost anywhere form 3X to 6X that of traditional, conventional wells, depending upon the depth of the drill and length of the lateral. To support this activity and take advantage of the recent oil boom, many small to mid-sized E&P companies have overleveraged their balance sheets to a significant degree with costly debt, with the strategy to receive payoff through production over time. The drastic decrease in global oil prices, or correction of commodities values, has put tremendous pressure on these companies as the payoff through production has not been realized. Further, given the decrease in revenues for these operators, many find themselves unable to pay off their expensive debt, to the point where companies with excellent producing assets and good cash flow file for bankruptcy at an alarming rate.
QS Energy Pool was created to take advantage of today's unique market conditions by way of identifying and acquiring these drastically undervalued assets, and to significantly benefit QS Energy and its shareholders in the short term. The M&A strategy will target the acquisition of companies or technologies that can be leveraged for the deployment and enhancement of AOT™ and Joule Heat, and that can lead to more immediate revenue generation.
MANAGEMENT TEAM
QS Energy is led by a seasoned management team and a strong independent board of directors. Together, these individuals apply their extensive industry expertise to provide sound strategic direction and a solid foundation for success.
Gregg Bigger
Chairman of the Board, Chief Executive Officer
Gregg Bigger was most recently founding partner of Rocfin Advisors, a strategic management consulting company providing advice and direction to a variety of clients including companies in the energy, clean tech, and emerging technology markets. Prior, Mr. Bigger was founder and board member of The Bank of Santa Barbara. Earlier in his career Mr. Bigger held a variety of key management and leadership positions including U.S. Trust as a vice-president in the Private Client Group, and First Republic Bank as a vice president and manager in the Private Banking Group. Mr. Bigger served in the United States Marine Corps Special Operations Unit.
Michael McMullen
Controller
As controller QS Energy Michael McMullen is responsible for financial and operational leadership and establishing and implementing policies relevant to strategic planning and risk management. During his career in corporate development and finance, Mr. McMullen has established a strong record of accomplishment, structuring and closing domestic and international transactions across a variety of industries. Prior to joining QS Energy, Mr. McMullen served in senior executive capacities with several first-to-market energy and technology companies, including FloWind Corp. and SomethingNow, Inc. As a management consultant and financial advisor to mid-market healthcare and bio-science entities, Mr. McMullen specialized in providing growth and transition management oversight to companies serving HMOs, hospitals and cancer centers.
Robert Khami
Vice President of Operations
Throughout his professional career, Mr. Khami has been engaged in a variety of technical and business develop- ment initiatives for the energy industry. Prior to QS Energy, Inc., Mr. Khami was General Manager at Hudson Products Corporation in Houston, Texas, where he increased both domestic and international sales, and created new products that improved operational efficiencies. He also served as the General Manager and Chief Operating Officer for two subsidiaries of Dorado Energy Partners, also in Houston. At Dorado, he led technical sales and account management initiatives, and developed custom technology solutions engineered to meet the exact needs of specific clients. Mr. Khami began his career as a Loads and Stress Analyst at Boeing Aircraft Company, and as a Chief Engineer at Ford Motor Company. He holds a Masters in Mechanical Engi- neering degree from the University of Washington, and a Bachelors of Science in Aerospace Engineering degree from the University of Michigan.
Bill Nicholson
Advisor, QS Energy Pool
Bill Nicholson has a long track record of success as a senior executive in private and publicly traded companies in the energy industry, and the consumer products and technol- ogy sectors. From 1984 to 1992 Mr. Nicholson served as Chief Operating Officer of Amway Corp. during a period of extreme growth which saw revenues jump from $1.5 billion to $5 billion. As an advisor and investor, Mr. Nicholson has consulted with the IMR Fund, Jacob’s Trading Company, FLW Outdoors, and was a principle investor and president of Swiftships, Inc., a firm that became the leading manufac- turer of high-speed aluminum watercrafts used for marine patrol and offshore oil field support. As both an investor and general partner he has been active in natural gas exploration in the North Texas Barnett Shale, drilling 20 horizontal deep gas wells and owning and operating eight vessels and two ocean-going work barges in support of offshore oil and gas production in the Persian Gulf, Gulf of Mexico, the Califor- nia Coast and the India Ocean. As a captain in the U.S. Air Force, Mr. Nicholson has 300 combat missions to his credit and is the recipient of the Distinguished Flying Cross, Air Medal, Vietnamese Medal of Honor and Cross of Gallantry.
Scott Y. Wood
Advisor, QS Energy Pool
Scott Wood has three decades of well-to-refinery experi- ence in the energy industry, providing oversight of oil and gas properties in many of the industry’s most active shale formations and basins. Mr. Wood’s career began in 1981 as a Petroleum Landman at Liberty Oil and Gas in Oklahoma City, prior to his venturing out to develop oil and gas proj- ects. In 1991 he formed Energy Reserves Group, LLC, an E&P company based in Galveston Bay, Texas. As general manager, Mr. Wood oversaw a series of acquisitions and divestitures including Plains Illinois Inc. which were consoli- dated into ERG Resources, L.L.C.
DON DICKSON
Board Member
Mr. Dickson returned to Kinder Morgan after working for the company’s natural gas operations division for 26 years, during which time he served in various capacities includ- ing Director of Operations on two major pipeline projects: the 42” Rockies Express (REX) and the 42” Midcontinent Express Pipeline (MEP). Between his stints at Kinder Morgan, Mr. Dixon served as Chief Executive Officer for Advanced Pipeline Services (APS), which provided a full range of services to the oil and gas industry including new pipeline and facilities construction, horizontal directional drilling and pipeline integrity/ rehabilitation. He also was Director of Operations at Tetra Resources, where he completed various onshore and offshore oil and gas wells, and was a Senior Engineer with Halliburton Services. Mr. Dickson earned his B.S. in Engineering from Oklahoma State University.
THOMAS A. BUNDROS
Board Member
During his extensive career in the energy industry Mr. Bundros has served as chief financial officer and a senior level finance executive with a variety of entities in the oil and gas industry and public utilities sector. In addition to his tenure as Chief Financial Officer at Colonial Pipeline Company, the world’s largest pipeline operator transporting 100 million gallons of refined petroleum products daily across 5,500 miles of pipeline, Mr. Bundros held various financial positions in the Atlanta and New York offices of the Southern Company System, the 16th largest utility company in the world and the fourth largest in the U.S. with over 4 million customers in Alabama, Georgia, Florida, and Mississippi. Mr. Bundros currently serves as the Chief Operations Officer for Dalton Utilities, a provider of electricity, natural gas, water and telecommunications services to the city of Dalton and portions of northwest Georgia. Mr. Bundros earned his Master of Business Administration in Finance and Bachelor of Science in Economics and Business Administration at the University of North Carolina at Greensboro.
CHARLES R. BLUM
Board Member
Charles R. Blum was appointed on July 25, 2007 to the Board of directors and engaged as the President and Chief Executive Officer of the Company. In January 2010, Mr. Blum resigned as Chief Executive Officer and continued to serve as President, until stepping down to be replaced by current President Mr. Greggory Bigger in September 2012. Mr. Blum spent 22 years as the President/CEO of the Specialty Equipment Market Association (SEMA). SEMA is a trade group representing 6500 business members who are actively engaged in the manufacture and distribution of automotive parts and accessories. SEMA produces the world’s largest automotive aftermarket Trade Show which is held annually in Las Vegas, Nevada. Mr. Blum led the association as its members grew from a handful of small entrepreneurial companies into an industry membership that sells over 31 billion dollars of product at the retail level annually. Mr. Blum has a proven record of accomplishment as a senior executive and brings a broad knowledge of the automotive aftermarket to the Company. Mr. Blum attended Rutgers University.
NATHAN SHELTON
Board Member
Nathan Shelton was President and part owner of K&N Engineering where he oversaw its growth into an industry leader. After selling his interest in 2002, he founded S&S Marketing, which operates an automotive aftermarket parts rep business. Mr. Shelton served on the board of Specialty Equipment Market Association (SEMA), including serving as its Chairman from 2002 to 2004. In 2007, Mr. Shelton was elected to the SEMA “Hall of Fame,” and is the recipient of numerous industry awards. He served honorably in the United States Seabees from 1968 to 1972.
MARK STUBBS
Board Member
Mr. Stubbs currently serves as Chief Financial Officer for London Stock Exchange-listed BBA Aviation in its After- market Services Division. BBA is a leading global aviation services and aftermarket support provider. Prior to joining BBA, Mr. Stubbs served as CFO and Interim Chief Execu- tive Officer for then NASDAQ-listed CallWave, Inc., a global provider of enhanced telecommunications software and services. Mr. Stubbs also served as CFO of Sound ID, a privately owned consumer electronics company. Mr. Stubbs has held a number of executive positions including Vice President Global Supply Chain, and VP and Managing Director Europe, Middle East and Africa at Somera, which was a publicly traded, leading global provider of telecommunications infrastructure and services. Mr. Stubbs has held a number of financial management positions at Kinko’s (acquired by NYSE-listed FedEx). He earned his B.A. in Finance and his MBA from Cal Poly San Luis Obispo. Mr. Stubbs is a Certified Public Account.
More information is available at: www.QSEnergy.com.
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