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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 ...® - Growing Industry Acceptance 15...
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...
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
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
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.
Focus is the key
Cost
Time
Risk
E&P Success
=
LOW FINDING
COSTS
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REDUCES
SFD® Fast Tracks Exploration
Environmental
Footprint
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
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
Offices/AgentsSFD Projects Proposed SFD Projects
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):
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.
Programa operativo
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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
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
THANK YOU !
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