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Presentation on theme: "INVESTOR PRESENTATION ( Updated February 15, 2013 ) A PROVEN, DISRUPTIVE TECHNOLOGY FOR HYDROCARBON EXPLORATION."— Presentation transcript:


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 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. 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 NXT’s Onshore / Offshore NXT’s method will identify the best oil and gas prospects 10 times faster, and at up to1/20 the cost of seismic…. Onshore / Offshore 3 SFD® SFD ® “Stress Field Detection” SFD ® (Patent Pending)

5 4 A Disruptive Technology with Global Impact SFD signal over Rubiales Field, Colombia 500 million bbls Rec. SFD signal over Ladyfern Field, Canada 1.62 Trillion cu. ft. Rec. SFD® Anomaly Ladyfern Field Signal Response SFD® Anomaly Rubiales Field Signal Response

6 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 5

7 Focus is the key Cost Time Risk E&P Success = LOW FINDING COSTS 6 REDUCES SFD ® : Fast Tracks the Exploration Process Environmental Footprint

8 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 (Versatile and rapid deployment) 7

9 SFD ® grid (2x2) miles 2D-Seismic What will $5.0 Million get you? 8 SFD ® - More focused information, quicker and with no environmental footprint Area = 2,000 square miles

10 9 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

11 Recent scientific advancements validate the premise of using quantum devices for potential field surveys. What’s New? DARPA* Research Note, September 20, 2012: “... micro-scale inertial sensors work like a focault pendulum. (the) sensors send out vibrations (and) the precession of a standing wave is measured...” * Defense Advanced Research Projects Agency Institute for Quantum Computing (IQC) University of Waterloo; Facility Opening – September 2012: “... Research at IQC aims to harness (the) unique properties of quantum mechanics to build unprecedented technologies, such as... highly efficient sensors...” 10 SFD ® - A Quantum Technology

12 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. 11 100 miles

13 Colombia example – the Quifa block Tested by Drilling ‘Blind Test’ Results SFD ® identifies 4 leads All verified by seismic A – 100 million bbl F - 100 million bbl B - drills 100 ft wet sand X - un-drilled X A A F F B B X X 12

14 Example of NXT Survey Results Llanos Basin, Colombia (2009-2012): 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 1112 Commercial Wells 7 0 Prediction Success Rate 64% 100% Estimated 1.26 Billion BBL OOIP 4 Field Discoveries Wells drilled in areas rejected by SFD Wells drilled in areas rejected by SFD 13 SFD® Recommendations Discovery SFD® Recommendations vs. Discovery

15 14 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. salt traps) the survey was designed to assess SFD correlation with existing geophysical data and producing fields and to identify new exploration prospects the total project with recommendations was delivered in only 4 months PEMEX is assessing the potential for new SFD surveys for 2013 PEMEX requested NXT to co-author a technical paper, which includes SFD / seismic correlation. The paper will be presented at the June 2013 Congreso Mexicano del Petroleo in Mexico. Importance? – PEMEX, 4 th largest world-wide E&P, further validating the use of SFD! SFD - Growing Industry Acceptance SFD® - Growing Industry Acceptance Note: Summary in lieu of confidential slides contained in live presentation

16 15 SFD Case Example 8 Canadian Plains Natural Fractures in Shale Horn River, British Columbia

17 SFD Case Example 8 Canadian Plains Natural Fractures in Shale Horn River, British Columbia 16 Directional drilling Flight direction

18 Alaska - NPRA Potential SFD Survey Areas New Frontiers - Alaska Onshore Exploration A B Proposed Survey ‘A’ ~ 5,000 square miles 3 X 3 mile grid survey $5.5 million approximate cost Proposed Survey ‘B’ ~ 2,000 square miles 3 X 3 mile grid survey $2.5 million approximate cost Each delivered in 4 months! 17

19 18 Source: Spears Oilfield Market Report, 2010; Barclay’s Original E&P Spending Survey, 2010; NXT Market Analysis $12 Billion Global Geophysics Market 2010 E&P Market: $447 Billion 1% = $120 million A 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

20 Offices/Agents 2012 Ongoing Projects 19

21 20 2012 – A Record Year - $11 million Summary of recent contracts and near-term pipeline objectives. Near-term Objectives StatusLocationUS$ Value CompletedColombia, Guatemala$ 3.5 million CompletedArgentina$ 1.65 million CompletedMexico$ 5.8 million CompletedBelize$0.5 million Underway Q1-13South Asia$ 2.66 million Pipeline Central & Latin America $ 10 million PipelineAsia$3 - $8 million PipelineMediterranean$4 - $6 million

22 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 in prospects Long term service contracts Current and Future Revenue Streams 21

23 22 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: $0.59 - $1.17 Debt-Free Balance Sheet ~ $4.0 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)

24 23 ManagementNon-Executive Directors 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 Krishna Vathyam Petrodorado Energy 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

25 SFD ® SFD ® Highlights 24 Rapid and Cost-Effective Onshore and Offshore Surveys Commercially Proven and Profitable Vast Market Opportunity Quantum Technologies are the Future THANK YOU ! NXT Contact Information Main Telephone +1-403-264-7020 Email: Website: Head Office Address 1400, 505 – 3 rd Street SW Calgary, Alberta, Canada, T2P3E6


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