A P R O V E N , I N N O VAT I V E T E C H N O L O G Y F ...® - Growing Industry Acceptance 15...

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CORPORATE PRESENTION (updated February 17, 2014) 1 A PROVEN, INNOVATIVE TECHNOLOGY FOR HYDROCARBON EXPLORATION

Transcript of A P R O V E N , I N N O VAT I V E T E C H N O L O G Y F ...® - Growing Industry Acceptance 15...

Page 1: A P R O V E N , I N N O VAT I V E T E C H N O L O G Y F ...® - Growing Industry Acceptance 15 Highlights of the PEMEX 2012 SFD survey project: • Initial survey covered vast area

CORPORATE PRESENTION(updated February 17, 2014)

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A P R O V E N , I N N O VAT I V E T E C H N O L O G Y F O R

H Y D R O C A R B O N E X P L O R AT I O N

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Disclaimer and Forward-looking Statements

This presentation is not intended to be used as an Offering Document.

The information contained in this document may include forward-looking statements including

opinions, assumptions, estimates and expectations of future prospects for the Company and financial

projections. When used in this document, the words "anticipate," "believe", "estimate," "expect,"

"intend," "may," "project," "plan," "will," "should" and similar expressions are intended to be among the

statements that identify forward-looking statements.

Forward-looking statements are subject to a wide range of risks and uncertainties, and although the

Company believes that the expectations represented by such forward-looking statements are

reasonable; there can be no assurance that such expectations will be realized. Any number of

important factors could cause actual results to differ materially from those in the forward-looking

statements including, but not limited to, volatility of oil and natural gas prices, changes in the oil and

gas industry, the Company’s ability to implement corporate strategies and obtain financing, the state of

capital markets, operating and technology risks, changes in general economic conditions and other

factors more fully described from time to time in the reports and filings made by the Company with

securities regulatory authorities.

Neither the TSX-Venture nor the OTC Exchanges accept responsibility for the adequacy

or accuracy of any information contained in this document.

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NXT Energy Solutions Inc.

is a service provider to the Oil & Gas exploration industry:

SFD® Survey System

Engaged in exploration reconnaissance.

We identify and rank high-potential prospect leads using a unique airborne survey method.

www.nxtenergy.com

Expanding worldwide client base (PEMEX, Pacific Rubiales, etc)

A Canadian Public Company

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Capitalization

TSX-V: SFD, OTC BB: NSFDF

Capitalization - Shares Outstanding (millions)

42.7 Common shares issued

8.0* Convertible Preferred shares (convert at 1:1, mature Dec 31, 2015)

2.9 Stock options (average exercise price $0.90)

3.4 Warrants (US $1.20 exercise, expire from March 8 to May 4, 2014)

57.0 Fully diluted # of shares

D&O Insider Ownership – 19.1% Basic, 31.5% Fully diluted

52 Week High/Low: $0.56 - $2.05

90 day average trading volume ~ 45,000 shares

Debt-Free Balance Sheet ~ $5.5 million cash

* Does not represent debt or debt service…converts 1:1 to common on achievement of milestones

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Management Non-Executive

Directors

Geosciences

Advisory Board

George LiszicaszChairman & CEO

Greg Leavens, C.A.

Chief Financial Officer

Andy Steedman, M.B.A

V-P Operations

Charles SelbyCaledonian Royalty Corporation

Mickey Abougoush Teknica Overseas Ltd.

Tom ValentineNorton Rose Fullbright LLP

Krishna VathyamPetrodorado Energy

John AgeeBusiness Advisor

Dr. George IuscoRepsol

Dr. Cleveland JonesState Univ. of Rio De Janeiro

Dr. Arief BudimanUniv. of Calgary, Canada

Extensive public

company experience

Solid global

experience

Outstanding

scientific credibility

Board, Management and Advisors

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SFD® rapidly identifies high-potential oil and gas prospects at

low cost, both onshore / offshore, in any terrain.

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SFD ® “Stress Field Detection”

SFD® (Patent Pending)

SFD® can also be used in confirmation / evaluation of seismic

prospects for reservoir potential - thereby reducing drilling risk.

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Focus is the key

Cost

Time

Risk

E&P Success

=

LOW FINDING

COSTS

7

REDUCES

SFD® Fast Tracks Exploration

Environmental

Footprint

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Versatile & rapid global deployment

The aircraft

Cessna 560 Citation jet

(fly at 10,000 feet, 300 mph)

The SFD® Sensors

2 systems of quantum devices

Data recording equipment

(2,000 cycles / second)

Aircraft positioning system

GPS based, tracks flight lines

SFD® Data Acquisition System

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SH min

SH max

Gravity field is distorted by stress

Discontinuities affect regional/local stress distribution

changes in stress orientationentering reservoir

SFD® responds to perturbations in the gravity field related to changes in stress direction

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The only tool that identifies trapped fluid at Stage 1

of exploration - Disruptive Technology with Global Impact

SFD® signal over

Ladyfern Field,

Canada

1.62 Trillion cu. ft. Rec.

SFD® Anomaly

Ladyfern Field Signal Response

SFD® signal over

Rubiales Field,

Colombia

500 million bbls Rec.

SFD® Anomaly

Rubiales Field Signal Response

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SFD ® grid (5x5) km

2D-Seismic

SFD® - More focused information, quicker and with no environmental footprint

Area = 10,000 Km2

0

500

1000

1500

2000

2500

3000

3500

4000

2D Seismic SFD

Line Km

Prospect Identification

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SFD® quickly and cost effectively evaluates seismically identified

prospects for reservoir potential – reducing drilling risk

Offshore Coverage

Prospect Verification

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Exiting prospects

identified by seismic

SFD® evaluates

reservoir potential of

prospects

Data integrated to

choose best prospect

and to minimize

drilling riskSeismic Prospects

SFD lines

Best Prospect

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Offices/AgentsSFD Projects Proposed SFD Projects

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SFD® Recommendations vs. Discovery

NXT conducted 10 surveys for 5 clients

totalling more than 7,000 line kilometers

Wells drilled on SFD

recommended leads

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Commercial

discoveries7 0

Prediction

Success Rate64% 100%

Estimated 1.26 Billion BBL OOIP

4 Field

Discoveries

Wells drilled in areas

rejected by SFD

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Example of NXT Survey ResultsLlanos Basin, Colombia (2009-2012):

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SFD® - Growing Industry Acceptance

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Highlights of the PEMEX 2012 SFD survey project:

• Initial survey covered vast area (over 100,000 sq. km)

• Covered varying geological areas and the Gulf of Mexico (e.g. deep waters, salt traps)

• Survey was designed both as a “blind-test” to assess SFD® correlation with existing

geophysical data and producing fields and to identify new exploration prospects

• Total project with SFD® recommendations was delivered in only 4 months

• PEMEX is assessing the potential for additional new SFD® surveys.

• PEMEX and NXT co-authored a technical paper, which includes SFD® / seismic

correlations.

• The paper was presented at NGO Conference in Cartagena, Colombia July 24, 2013.

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Programa operativo

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1

2

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1. Service Fees

2. Data SalesIn Colombia alone, over 40,000 km of proprietary data have been acquired.

Additional data added with each new survey.

3. RoyaltiesExisting GORR contracts in Canada (Pengrowth ~ BC Horn River Basin; Alberta ~ Swan Hills).

4. Vertical ExpansionGoal = Equity ownership in prospectsAdditional long-term survey opportunities.

Expanding Potential Revenue Streams

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Growth Strategy – Organic growth

Where:

- Latin America (core area for NXT)

- Asia

- Arctic and Atlantic Coast

- Mediterranean and Africa

Who:

- National Oil Companies (i.e. PEMEX, Ecopetrol)

- Medium sized International (i.e. Pacific Rubiales)

How:

Leverage

- Access

- Awareness

- Acceptance

- Application

Focus on areas where SFD has a Competitive advantage

Large Land Owners / International Leverage

Remain focused

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CountryE&P

activities

Joint

Papers

Potential

Contracts

US$ Value

(millions)

Colombia seismic (P) - 2 $ 1.5

Guatemala drilling (I) - - -

Argentinaseismic (C)

Drilling (P)1 (P) - -

Belize seismic (I) - 1 -

Mexicoseismic (I)

drilling (P)1 multi-year $10 +

Pakistanseismic (I)

drilling (P)1 multiple $ 5.0 +

Peru - - multiple $ 3.0 +

Bolivia - - multiple $ 5.0 +

Exploration activity on recent SFD®

survey areas, and new opportunities

P – planned I – in progress C - completed

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SFD ® Highlights

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Value Added Service - Increase Client Exploration Success • Identify potential hydrocarbon traps

• Rapid and cost effective project execution

• Highly complementary to other G&G tools

An Expanding, Profitable Business• Have surveyed in numerous countries in multiple geological settings

• Strong repeat business opportunities

• Non dilutive growth formula

Vast Market Opportunity• SFD market is global – onshore and offshore

Unique Proprietary Service • Patent Pending

• No direct competitors

• Quantum technologies are the Future

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THANK YOU !

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