corporate presentation ( updated december 5, 2012 ) 1 a proven, disruptive technology for...
TRANSCRIPT
CORPORATE PRESENTATION
(UPDATED December 5, 2012)
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A P R O V E N , D I S R U P T I V E T E C H N O L O G Y F O RH Y D R O C A R B O N E X P L O R A T 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 OTCBB 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 upstream Oil & Gas Industry:
SFD ® Survey System
Engaged in exploration reconnaissance.
We identify and rank high-potential prospect leads using a unique airborne survey method.
www.nxtenergy.comA Canadian Public Company
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SFD survey locations Agents/LiaisonsNXT Offices
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2012 – A Record Year
Selected list of recent contracts and near-term pipeline objectives.
Near-termObjectives
Status Location US$ Value
Complete Colombia, Guatemala $ 3.5 million
Complete Argentina $ 1.65 million
Completion in Q4-12 Mexico $ 5.8 million
Completion in Q4-12 Belize $ 0.45 million
Planned Q1-13 South Asia $ 2.66 million
Pipeline Central & Latin America $ 5 million
Pipeline Paraguay & Bolivia $ 5 - $ 8 million
Pipeline Colombia $ 1 - $ 5 million
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Focus is the key
Cost
Time
Risk
E&P Success =
LOW FINDING COSTS
REDUCES
SFD®: Fast Tracks the Exploration Process
EnvironmentalFootprint
NXT Energy Solutions
SFD (Stress Field Detection) • Disruptive Patent Pending Airborne Survey Technology for Oil & Gas Exploration• The only tool that can detect trapped reservoirs at stage I of the exploration cycle
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We can identify the best oil and gas prospects
in at least 1/10th of the time,
and 1/10th of the cost of seismic
2D Seismic SFD0
500
1000
1500
2000
2500
Survey Method
Line
Kilo
met
ers
SFD delivers Focus quickly and cost effectivelySignificantly 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®
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SH min
SH max
Gravity field is distorted by stress
Discontinuities affect regional/local stress distribution
SFD® responds to perturbations in the gravity field related to changes in stress direction
changes in stress orientationentering reservoir
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NXT Survey Results in Colombia
(May 2009 – July 2012)
To date, 11 SFD Lead Areas have been drilled, 7 of which were successful, resulting in the discovery of 4 oil pools with an estimated 1.26 Billion BBL OOIP.
In addition, 8 wells were drilled along SFD survey lines that were not recommended by SFD, none of which have resulted in a discovery.
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SFD® Services
Concession Level
- Reconnaissance grid designed to identify and rank
individual reservoir prospects and/or optimize seismic programs (PRE)
- Prospect Verificationhigh-grading seismically derived prospects based on reservoir quality onshore/offshore (PRE, BP)
Basin Level
grid designed to identify Trap Potential (PEMEX)
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Source: Spears Oilfield Market Report, 2010; Barclay’s Original E&P Spending Survey, 2010; NXT Market Analysis
$12 BillionGlobal Geophysics
Market
2010 E&P Market:
$447 Billion1% = $120 million
Vast Market Opportunity
2012 $11 Million 0.09%
2013 $20 Million 0.17%
2014 $40 Million 0.33%
NXT Revenue Targets
Best Previous Year - $5.3 Million
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. RoyaltyExisting GORR contracts in Canada (Pengrowth ~ BC Horn River Basin; Alberta ~ Swan Hills)
4. Vertical ExpansionEquity ownership, long term contracts
Current and Future Revenue Streams
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Capitalization
TSX-V: SFD, OTCBB: NSFDF
Capitalization - Shares Outstanding (millions)39.5 Common shares issued
10.0* Convertible Preferred shares (convert at 1:1, mature Dec 31, 2015)
3.1 Stock options (average exercise price $0.85)
4.5 Warrants (US $1.20 exercise, expire from March 8 to May 4, 2014)
57.1 Fully 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 ~ $3.5 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)
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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.AV-P Operations
Grafton Withers, M.B.A
V-P Marketing & Sales
Charles SelbyCaledonian Royalty Corporation
Mickey Abougoush Teknica Overseas Ltd.
Tom ValentineNorton Rose LLP
John AgeeBusiness Advisor
Dr. George IuscoRepsol
Dr. Cleveland JonesState Univ. of Rio De Janeiro
Extensive public company experience
Solid global management experience
Outstanding scientific credibility
Board and Management
Highlights
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• Disruptive Technology for Oil & Gas Exploration
• Profitable and Commercially Proven
• Contract and Pipeline Activity is Robust
• Vast Market Opportunity
THANK YOU !