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Annual General MeetingJuly 10, 2019 Calgary, ABSolutions Powered By Clean onsSocialLicenseQuestor Technology Inc.20 Years Providing Solutions Eliminating the Need to Vent or Flare Gas
Forward Looking Statements Certain information presented today may constitute forward-lookingstatements. Such statements reflect the Company’s currentexpectations, estimates, projections and assumptions.These forward-looking statements are not guarantees of futureperformance and are subject to certain risks which could causeactual performance and financial results in the future to varymaterially from those contemplated in the forward-lookingstatements.For additional information on these risks please refer to theCompany’s 2018 annual reporting under the heading “BusinessConditions and Risk Management.”2
QUESTOR is a leading provider of99.99% efficient, safe, reliable andregulatory compliant patented wastegas combustion systems across anarray of industries.What We DoQUESTOR specializes in the cleancombustion of waste gases, methane,VOC’s, HAP’s and BTEX, addressingair quality and GHG emissions. Werecover the waste heat from cleancombustion and other sources to treatwaste water and generate power.QUESTOR’s solutions improve safety,reduce costs, improve energyefficiency, achieve compliance, reduceGHG emissions while gaining publicsupport.QUESTOR’s adaptability has resultedin unique solutions that have becomeindustry standards in an everchanging, competitive market.3
The Problem We Are SolvingQUESTORBEFORECommunity acceptance; operating and capital cost reductions; safety;energy efficiency; emission regulations: VOC, HAP’s, methane, air quality,GHG emissions, low carbon operations, green/closed loop completions,no flaring, no venting, no odors4
Creating Value From WasteClean Emissions Solutions99.99% Combustion EfficiencyClean Emissions - CO2 and WaterPad and Well Site OperationsWater Vaporization(Under Development)Waste GasesDrilling and CompletionsOperationsHeat EnergyClean Combustion DeviceGas and Oil Processing Upstream,Midstream and Downstream5ORC Heat to Power77kW to 5MW
CorporateProfile Founded in 1994 and listed in1998 on the TSX VentureExchange – “QST”. HQCalgary, ABStrong, experiencedmanagement team and Boardof DirectorsClean balance sheet with nodebtTechnology considered bestin classU.S. and Canadian patent –expires November 2019Proven technology that is keyto meeting the tough globalregulations and targets onemissions6
Investor InformationShare Information (Y/E 2018)Common Shares12 Month Share Price Performance27.2 millionNilWarrantsCurrent share price 4.80(07/10/2019)52 Week Hi-Low 2.05- 5.36Y/E Earnings/Share 0.27(Basic)Market Cap 131.0 MillionFinancial Information (Y/E 2018)RevenueMajor ShareholdersCashAudrey Mascarenhas 23.5 million 8.8 million16%Net Debt7Nil
Board of DirectorsJim InksterStewart Hanlon – ChairmanEntrepreneur and businessman.Jim has provided twenty years ofinsight in assisting management inbuilding the firm base on which theCorporation’s growth plans arematerializing.Mr. Hanlon had a long anddistinguished career with GibsonEnergy Inc. a Canadian-basedmidstream energy company. Mr.Hanlon served as President andCEO of Gibson from 2009 through2017.Jean-Michel GiresAudrey MascarenhasPresident & CEOJean-Michel Gires previousPresident & CEO Total E&PCanada. He joined Chrysalix in2013, an energy venture capitalfirm. He is based in Calgary anddedicates himself to innovation.Chemical Engineer with Master’s degree inPetroleum. Over 38 years of oil and gasexperience. She joined Questor in 1999. Uof C Engineering Industry advisor. Chair ofthe Federal Government Clean TechnologyStrategy table. 2011 E&Y Entrepreneur ofthe year. Fellow of the Canadian Academyof Engineers.8
Questor Team ProfileAudrey MascarenhasPresident and CEORobert Miller – President, ClearPowerSystemsDan Zivkusic – CFOCPA, CMA with over 20 years in the oiland gas industry in the E&P and servicesectors. Senior executive financeexperience in E&P, pressure pumping,artificial lift systems, managed pressuredrilling and testing.Mechanical engineer with over 45 years ofextensive experience in manufacturing,co-generation and power generation withAmerada Hess (Microgen), Turbogenix,Calnetix and General Electric.John Sutherland – COOJustin Mahendra – VP, Sales & MarketingMechanical engineer with over 31 yearsof domestic and international experiencein production operations, facility design,regulatory compliance, HSE and EPCwith various mid-sized to largemultinational oil and gas companies.16 years of technical sales, accountmanagement and business developmentexperience including 7 years in wastemanagement within the UK and Europeand the past 9 years in the NorthAmerican oil and gas sector.9
Consistent Revenue GrowthGross Revenue14 2325 1920 Millions (Cdn.) Million (Cdn.)Adjusted EBITDA1510 8 750 121210 88642 1 0201520160201520162017201825 16 Million (Cdn.)Million (CAD)2015 1110 32018USA RevenuesRental Revenue52017 3 2220 1715105 4 3201520160020152016201720181020172018
Business SegmentsSalesRentalsField CombustionServices11
ColoradoAir quality issues: nonattainment zonesLack of gas pipelinetake away capacityWin-win created withstringent regulationsSenate Bill 181 hascreated a framework forIndustry and communityto work togetherQuestor has establisheda strong marketpresence andsignificantly reducedcustomer concentration12
Units in Colorado30% reduction in lease size, 20% reduction in pad cost;Incremental 400 bbls/d productionRental unitProduction Units13
Rental FleetExpansion to Texas& North DakotaOver 35% of the rental fleet iscommitted to contracts rangingin term from 6 months to 24months in Colorado, Texas andNorth Dakota contributing 5MM of revenue Questor was independentlyfield tested in North Dakota andColorado and, once again,confirmed its performance inexcess of 99.99%Questor units deliver value toour clients by increasing oilproduction limits bysignificantly reducing VOC’sand NOx 14 3.2 million of the 5 millionin rental contracts are withnew clients in North Dakota 1.0 million of the 5 millionis with a new client in Texason a 24 month contract400 bbls/d per site in CO2200 bbls/d per site in ND
Bakken - NDPermian - TX 600 MMscf/d currently flaredwith pipeline capacity at 98% Opportunity for a 180 unitrental fleet 4021 well drilled butuncompleted due to lack of P/Lcapacity Yard space in Midland, Texas15520 MMscf/d flared representing20% of total gas productionRecently deployed 39% of therental fleet to the area for a newclientOpportunity for a rental fleet of120 unitsQuestor units creatingsignificant opportunity toincrease oil production utilizing99.99% combustion efficiency
New GrowthOpportunity inMexicoMethane emissionreduction target of 75%by 2025 from oil and gasindustryNew rules applicable toboth new and existinginstallationsFines and oil productioncurtailment for noncomplianceMexico’s environmentalregulations will rewardcompanies that harnessbenefits fromassociated gasQuestor anticipates significantinterest in its integratedcombustion/waste heat topower solutions16
Data MonitoringInternet17
GEMMA’sPrime Directives
Questor’sMarket Drivers 19US EPA/State regulation focusedon air quality and non-attainmentzone emissions: Methane, HAPand VOC’sRecognition of Questor’s 99.99%combustion efficiency –advantage in meeting air qualityemission regulations (VOC’s) –resulting in incremental oilproductionClimate change focus; Methane is84 x more potent than CO2 –clean combustion reduces GHGemission 30 x – most costeffective way to reduceE&P C-suite compensation tied toemission reduction targetsInvestment targeting lowcarbon emission industries –100 Investors managing over 35trillion
Diversified technologyGrowth StrategyDiversificationsolution offerings andtechnology adoption inother industries ClearPower - waste heatconversion to powerwith zero emissionssignificant globalindustrial market - 77kWto 1.5MW Developing technologyto utilize the on-site heatfrom flue gas to reduceproduced and flow-backwater volumes (90%reduction in volume at acost of less than 3/bbl)20
Social License“They’re called thermal oxidizers,and could provide a safer, moreefficient way to flare natural gas.”“A typical flare stack burns at about 800 degrees Fahrenheit,but the oxidizers heat up to 1,200 to 1,800 degrees, said JoDellMizoue, WPX environmental manager. She said that higherheat allows for 99.9 percent combustion efficiency, burning offall the methane and only releasing carbon dioxide and watervapor.”“It’s a safer and more efficientdesign, she said, ideal for aresidential area.”21
COST REDUCTION FORCLIENTSPUBLICCONFIDENCEQUESTOR SOLUTIONS ANDTECHNOLOGY INCAudrey MascarenhasPresident and uestortech.comwww.clearpowersystems.comQuestor Technology Inc.2240, 140 – 4 Avenue SWCalgary, Alberta, Canada. T2P 3N31.403. 571.1530ENVIRONMENTALPROTECTIONGrande Prairie, AlbertaBrighton & Ft. Lupton, ColoradoWatford City, North DakotaMidland, TexasClearPower Systems Inc.Questor Solutions and Technology15330 Flight Path DriveBrooksville, FL 34604United States1.352.442.865122
insight in assisting management in building the firm base on which the Corporation's growth plans are materializing. Stewart Hanlon -Chairman Mr. Hanlon had a long and distinguished career with Gibson Energy Inc. a Canadian-based midstream energy company. Mr. Hanlon served as President and CEO of Gibson from 2009 through 2017.
