CORPORATE PRESENTATION
(UPDATED September 19, 2012)
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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 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 adequacyor accuracy of any information contained in this document.
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NXT Energy Solutions
Disruptive Patent Pending Airborne Survey Technology for Oil & Gas Exploration• We fly at 470 kms per hour at an altitude of 3000 meters• SFD® works onshore, offshore, and over any terrain• Significantly reduces time, cost, and risk to discovery and no environmental impact.• The only tool that can detect trapped reservoirs at stage I of the exploration cycle
Profitable and Commercially Proven• Q1 and YTD record revenue and profit; Two consecutive profitable quarters• Discoveries in Canada, USA and Colombia• Repeat customers, Case Studies, Look-back Study• Commencement of Data Sales• Commencement of Data Sales
Media Coverage and Exposure• Testimonials, Newsletters, Articles, Research Coverage, Interviews
Contract and Pipeline Activity is Robust• Backlog of contracts for balance of 2012• Largest pipeline ever• Large proprietary data bank
Vast Market Opportunity• $12B annual geophysical market
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Capitalization
TSX-V: SFD, OTCBB: NSFDF
Capitalization - Shares Outstanding (millions)39.5 Common shares issued10.0* 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)
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57.1 Fully diluted # of shares
D&O Insider Ownership – 15.9% Basic, 32% Fully diluted
52 Week High/Low: $0.56 - $1.17
Debt-Free Balance Sheet ~ $2.5 million cash
* Does not represent debt or debt service…converts 1:1 to common on achievement of milestones
We identify the best oil and gas prospects in 1/10th of the
time, and 1/10th of the cost of seismic methods onshore
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Focuses costly seismic resources on high-graded prospect areas.
SFD® shows explorers where to shoot. Seismic shows them where to drill.
1500
2000
2500
Line
Kilo
met
ers
Data Coverage for $3.5 Million
115 km Seismic vs. 2,500 line kms SFD®
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500
1000
2D Seismic SFD
Line
Kilo
met
ers
Survey Method
20x more ground coveredEliminates 90% of reconnaissance seismic
SFD ® (5x5)Seismic
5,000 sq. km.
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SFD ® Applications
• Kick-Start New Basin Evaluation
• Conduct Rapid Prospect-Scale Reconnaissance
Identification of trapped reservoirs
• Conduct Rapid Prospect-Scale Reconnaissance
• Evaluate Bid Round Blocks
• Explore Over Water and Difficult Terrain
• Optimize Seismic Surveys
• Verification of Prospects selected by Seismic
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Technology
• Subsurface stress is caused by tectonic movements. Stress can either be in the form of compression, stretching/tensile, or shear stress (e.g. tearing paper sheet)
• Stress affects the gravitational field potential and causes distortions in the field. Fluid trapping reservoirs will affect the stress around them.
• Thus, these stress changes will impact the direction/orientation of the gravitational field.
• 22 sensors on the aircraft detect orientation changes in the horizontal gravity field
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‘SH Max’ is the direction of maximum horizontal stress.
SFD sensor
Gravity field is distorted by stress
Discontinuities affect
regional/local stress distribution
SFDSFD®® responds to perturbations in the gravity field
related to changes in stress direction
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SH min
SH max
changes in stress orientation
entering reservoir
Robust Contractual and Pipeline Activity
Status Location Value
CompleteColombia, Guatemala
$ 3.5 million
Complete Argentina $1.65 million
Selected list of recent contracts and near-term pipeline objectives.
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Complete Argentina $1.65 million
Completion in Q4-12 Mexico $ 4.7 million
Contracted South Asia $ 2.66 million
Pipeline Latin America $ 6.0 million
Pipeline Paraguay $ 3 million
Pipeline Colombia $ 1 - $ 5 million
> $20 million in sole source quotes
Near-termObjectives
1. Service Fees
2. Data SalesIn Colombia alone over 40,000 km of proprietary data have been acquiredAdditional data added with each new survey
Current and Future Revenue Streams
3. RoyaltyExisting GORR contracts in Canada (Pengrowth~ BC Horn River Basin; Alberta ~ Swan Hills)
4. Vertical ExpansionEquity ownership, long term contracts
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$12 BillionGlobal Geophysics
Market
2010 E&P Market:
$447 Billion1% = $120 million
Vast Market Opportunity
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Source: Spears Oilfield Market Report, 2010; Barclay’s Original E&P Spending Survey, 2010; NXT Market Analysis
2012 $13 Million 0.11%
2013 $20 Million 0.17%
2014 $40 Million 0.33%
NXT Revenue Targets
Best Previous Year - $5.3 Million
Record Revenue and Profitability in Q1’12 and 2012 YTD
Q2 2012 Q2 2011
Survey Revenue $ 2,394,863 $ 144,650
EBITDA $ 243,806 $ (1,346,706)
Net Income (Loss) $ 30,660 $ (1,485,227)
Basic and Diluted Earnings (Loss) per share $ - $ (0.02)
Q1 2012 Q1 2011
Survey Revenue $ 2,815,320 $ -
EBITDA $ 501,400 $ (703,466)
Net Income (Loss) $ 337,928 $ (792,717)
Basic and Diluted Earnings (Loss) per share $ 0.01 $ (0.02)
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YTD 2012 YTD 2011
Survey Revenue $ 5,210,183 $ 144,650
EBITDA $ 745,206 $ (2,050,172)
Net Income (Loss) $ 368,588 $ (2,277,944)
Basic and Diluted Earnings (Loss) per share $ 0.01 $ (0.04)
Management Non-Executive Directors
Geosciences Advisory Board
George LiszicaszChairman & CEO
Greg Leavens, C.A.Chief Financial Officer
Charles SelbyCaledonian Royalty Corporation
Mickey Abougoush Teknica Overseas Ltd.
Dr. George IuscoRepsol
Board and Management
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Chief Financial Officer
Andy Steedman, M.B.AV-P Operations
Grafton Withers, M.B.A
V-P Marketing & Sales
Tom ValentineNorton Rose LLP
Brian KohlhammerDelphi Energy Corp.
John AgeeBusiness Advisor
Dr. Carlos VargasUniversity of Colombia
Dr. Cleveland JonesState Univ. of Rio De Janeiro
Extensive public company experience
Solid global management experience
Outstanding scientific credibility
Highlights
• Disruptive Technology for Oil & Gas Exploration
• Profitable and Commercially Proven
• Contract and Pipeline Activity is Robust
• Vast Market Opportunity
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• Vast Market Opportunity
THANK YOU!