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CORPORATE PRESENTATION ( January 21, 2013 ) A PROVEN, DISRUPTIVE TECHNOLOGY FOR HYDROCARBON EXPLORATION.

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Presentation on theme: "CORPORATE PRESENTATION ( January 21, 2013 ) A PROVEN, DISRUPTIVE TECHNOLOGY FOR HYDROCARBON EXPLORATION."— Presentation transcript:

1 CORPORATE PRESENTATION ( January 21, 2013 ) A PROVEN, DISRUPTIVE TECHNOLOGY FOR HYDROCARBON EXPLORATION

2 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 Companys 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. 1

3 2 NXT Energy Solutions Inc. NXT Energy Solutions Inc. is a service provider to the upstream Oil & Gas Industry: SFD® Survey System SFD ® Survey System Engaged in exploration reconnaissance. We identify and rank high-potential prospect leads using a unique airborne survey method. A Canadian Public Company

4 NXTs NXTs method will identify the best oil and gas prospects 10 times faster, and at up to1/20 the cost of seismic 3 SFD® SFD ® Stress Field Detection SFD ® (Patent Pending)

5 4 SFD® SFD® Survey in Colombia NXT recommendation in Dec D Seismic over the block (grey area) completed by December Discovery July 2010 with an estimated 180 million barrels OOIP. Today the entire field is developed. Sabanero Block

6 5 Pacific Rubiales relinquished non- prospecting areas Petrodorado farms in $8 million commitment SFD® grid program fully evaluated the 7,500 km 2 area SFD ® Tacacho block, Colombia SFD ® Survey, Pacific Rubiales, Tacacho block, Colombia Flown 2000 line km From Start to finish 7 weeks

7 Tacacho and Terecay 2010 Results Drilling in Q This chart shows the exploration leads and resource expectations in the Tacacho and Terecay areas vs. the top SFD anomalies Source : PRE – Exploration Asset Portfolio Report (September 2010) 6

8 Focus is the key Cost Time Risk E&P Success = LOW FINDING COSTS 7 REDUCES SFD ® : Fast Tracks the Exploration Process Environmental Footprint

9 SFD® SFD® System Exploration spectrum Aeromagnetics & Gravity Hi-Res Aeromag 2-D Seismic 3-D Seismic Drilling SFD ® Inferred knowledge of Trap & Reservoir detail steadily increases Gravity Gradiometry Reconnaissance Prospect LevelBasin LevelWell Level Prospect Identification Prospect Verification The resolution of an SFD ® survey significantly surpasses other remote sensing techniques 8

10 The aircraft Cessna 560 Citation jet (fly at 3,000 meters, 500 km/h) 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 9

11 10 SH min SH max Gravity field is distorted by stress Discontinuities affect regional/local stress distribution changes in stress orientation entering reservoir SFD ® SFD ® responds to perturbations in the gravity field related to changes in stress direction

12 Offices/Agents 2012 Ongoing Projects 11

13 NXT Surveys - Llanos Basin, Colombia ( ): NXT conducted 10 surveys for 5 clients totalling more than 7,000 line kilometers NXT conducted 10 surveys for 5 clients totalling more than 7,000 line kilometers Wells drilled on SFD recommended Leads 118 Commercial Wells 7 0 Prediction Success Rate 64% 100% Estimated 1.26 Billion BBL OOIP Correlations between discoveries and SFD Recommendations 4 Field Discoveries Wells drilled in areas rejected by SFD Wells drilled in areas rejected by SFD 12

14 QUIFA BLOCK SFD BLIND TEST Tested by Drilling RUBIALES OIL FIELD Blind Test Results SFD ® identifies 4 leads All verified by seismic A – 100 million bbl F million bbl B - drills 100 ft wet sand X - un-drilled X A A F F B B X X 13

15 – A Record Year - $11million Selected list of recent contracts and near-term pipeline objectives. Near-term Objectives StatusLocationUS$ Value CompleteColombia, Guatemala$ 3.5 million CompleteArgentina$ 1.65 million CompleteMexico$ 5.8 million Complete Q4-12Belize$0.5 million Underway Q1-13South Asia$ 2.66 million Pipeline Central & Latin America $ 5 million PipelineParaguay & Bolivia$ 5 - $ 8 million PipelineColombia$ 1 - $ 5 million

16 15 Source: Spears Oilfield Market Report, 2010; Barclays Original E&P Spending Survey, 2010; NXT Market Analysis $12 Billion Global Geophysics Market 2010 E&P Market: $447 Billion 1% = $120 million Vast Market Opportunity 2012$11.4 Million0.09% 2013$20 Million0.17% 2014$40 Million0.33% NXT Revenue Targets Best Previous Year - $5.3 Million

17 1. Service Fees 2. Data Sales In Colombia alone, over 40,000 km of proprietary data have been acquired. Additional data added with each new survey 3. Royalty Existing GORR contracts in Canada (Pengrowth ~ BC Horn River Basin; Alberta ~ Swan Hills) 4. Vertical Expansion Equity ownership, long term contracts Current and Future Revenue Streams 16

18 SFD® SFD® Services Concession Level - Reconnaissance Grid designed to identify and rank individual reservoir prospects and/or optimize seismic programs (PRE) - Prospect Verification High-Grading seismically derived prospects based on reservoir quality onshore/offshore (PRE, BP) Basin Level Grid designed to identify Trap Potential (PEMEX) 17

19 SFD delivers Focus quickly and cost effectively Significantly reduces reconnaissance seismic Data Coverage for $3.5 Million SFD ® (5x5) Seismic 5,000 sq. km. 115 km Seismic vs. 2,500 line km SFD ® 18

20 SFD SFD® Product A recommended target map of anomalies identified by SFD ® interpretation, rated on both reservoir and trap characteristics. From this SFD ® Based Prospectivity map, seismic can be tailored to maximize results and minimize cost. 19

21 20 SFD ® complements other tools, especially seismic identifies and ranks potential trapped-reservoirs identifies other major geological anomalies (ex: faults) identifies natural fractures in resource plays cannot differentiate reservoir fluid types (water or oil/gas) cannot determine exact drill location cannot define depth of reservoir cannot distinguish the number of stacked reservoirs without lateral offset SFD ® Capabilities and Limitations

22 Time (seconds) May 25, 2009 SFD ® signal over heavy oil Rubiales field Signal relaxation Reservoir indicator Voltage (v) N Time (seconds) A B A B 21

23 Chuchupa Gas Field Chuchupa SFD Colombia Offshore Example : Chuchupa is a 5.5 TCF Gas Field 22

24 23 SFD Case Example 8 Canadian Plains Natural Fractures in Shale Horn River, British Columbia

25 SFD Case Example 8 Canadian Plains Natural Fractures in Shale Horn River, British Columbia 24 Directional drilling Flight direction

26 JQI has developed a novel design for a highly compact, ultra-sensitive quantum device to measure subtle changes in gravity using atomic interferometry. It may be used to search for natural resources beneath the Earths surface. Quantum detectors are now being proposed by prestigious researchers. August 2010 NXT is ahead of the curve with the SFD ® sensor. Further Technical Validation 25 Source: a new design for a gravimeter.htmlhttp://www.jqi.umd.edu/news/242 a new design for a gravimeter.html

27 26 Capitalization TSX-V: SFD, OTCBB: NSFDF Capitalization - Shares Outstanding (millions) 39.5Common shares issued 10.0*Convertible Preferred shares (convert at 1:1, mature Dec 31, 2015) 3.1Stock options (average exercise price $0.85) 4.5Warrants (US $1.20 exercise, expire from March 8 to May 4, 2014) 57.1Fully diluted # of shares D&O Insider Ownership – 15.9% Basic, 32% Fully diluted 52 Week High/Low: $ $1.17 Debt-Free Balance Sheet ~ $5.0 million cash Does not represent debt or debt service…converts 1:1 to common on achievement of milestones (2 million of the total are currently convertible)

28 27 ManagementNon-Executive Directors Geosciences Advisory Board George Liszicasz Chairman & CEO Greg Leavens, C.A. Chief Financial Officer Andy Steedman, M.B.A V-P Operations Grafton Withers, M.B.A V-P Marketing & Sales Charles Selby Caledonian Royalty Corporation Mickey Abougoush Teknica Overseas Ltd. Tom Valentine Norton Rose LLP John Agee Business Advisor Dr. George Iusco Repsol Dr. Cleveland Jones State Univ. of Rio De Janeiro Dr. Arief Budiman Univ. of Calgary, Canada Extensive public company experience Solid global management experience Outstanding scientific credibility Board, Management and Advisors

29 Highlights 28 Disruptive Technology for Oil & Gas Exploration Profitable and Commercially Proven Contract and Pipeline Activity is Robust Vast Market Opportunity THANK YOU !


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