Quantum Energy Highlights Favorable Refining Operating Conditions

TEMPE, AZ--(Marketwired - Aug 26, 2015) - Refinery and energy processing developer Quantum Energy, Inc. (OTC PINK: QEGY) recently asked Peter Nilsen of Middle Market Resources, LLC (www.midmarketresources.com) for an internal report on US refinery market conditions given the recent record in crude prices, crude processing output and plant utilization rates. Mr. Nilsen is a member of the Quantum Advisory Board and provided this narrative in his report:

"Our research reveals and supports a recent Yahoo Finance posting of an August 23, 2015 Business Insider article that stated, 'Independent refiners are doing very well these days. Valero, an independent US refiner, reported a $1.1 billion increase in earnings in the second quarter of 2015 over last year from refining operations. The $1.1 billion increase in refining-segment operating income in the second quarter of 2015 compared to the second quarter of 2014 was due to higher margins on gasoline and other refined products (e.g., petroleum coke, propane, and sulfur) relative to Brent crude oil, partially offset by lower discounts on sour crude oils relative to Brent crude oil.'

"The Yahoo posting gave another example that supports our internal findings when it reported that, 'Another refiner, HollyFrontier, posted operating profits of $589 million in the second quarter of 2015, up from $296 million during the same quarter last year, according to the company's SEC filing. The gain was made despite the fact that the sales revenue for the company decreased 31% year over year for the quarter, to $3.7 billion this year from $5.4 billion last year. The company was able to do this in part due to the drop in cost of goods sold, mostly crude oil, for which the company paid $1.8 billion less all while increasing refinery utilization from 99.1% to 100.7%. This accounted for approximately half of the costs cut for the company in the quarter.'

"The Nilsen Middle Market Internal Report concurs with the concluding Yahoo article statement that, 'Overall gross refining margins per produced product sold increased 20% and 17% over the respective three and six months ended June 30, 2014.' So, while the S&P 500 has lost money for investors, refinery stocks have been surging." 

The Nilsen Report concludes by referring the Quantum Board to the following table of Q1 2015 performance of refining independents Valero, Tesoro, and Holly Frontier:

Quantum recently announced the formation of Quantum Native Processing Partners, LLC, a Joint Venture with Native Son Refining, LLC, for the development of its Berthold, ND site and the filing of its air quality permit for a 40,000 barrel per day refinery. 

About Quantum Energy, Inc.

QUANTUM ENERGY, INC. is a development stage, publicly traded, diversified holding company with offices in Williston, North Dakota. Quantum places an emphasis in refinery development, land holdings, oil and gas exploration, drilling, well completion and fuel distribution and has recently entered into a Strategic Alliance with Bilfinger Westcon (www.westconindustries.com) to develop multiple Energy Centers that include a 40,000 barrel per day diesel refinery within the Bakken. www.quantum-e.com

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