investor presentation nxt energy solutions may 2017 · nxt energy solutions is a canadian airborne...

The next generation of airborne geophysical survey technology

NXT Energy Solutions

INVESTOR PRESENTATION

May 2017

© 2017 NXT Energy Solutions Inc.

Disclaimer and Forward-looking Statements

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 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 or the OTC QB Exchanges accept responsibility for the adequacy or accuracy of any information contained in this document.

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© 2017 NXT Energy Solutions Inc. 3

Introduction to NXT: NXT Energy Solutions is a Canadian Airborne Geophysical Survey public company with a proprietary game-changing technology called SFD®.

Is NXT’s proprietary gravity-based airborne geophysical technology

Stress Field Detection (SFD®):

Confirms trap integrity (trap, reservoir and seal), thereby reducing exploration risk

Creates value independent of commodity prices

Increases conventional exploration success rates while rejecting most non-commercial targets


NON INVASIVE

MINIMAL ENVIRONMENTAL OR

COMMUNITY FOOTPRINT

A patented and proven technology with drilled commercial discoveries and client references


SFD® Survey System on Citation 560 jet aircraft

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SFD® survey system detects minute gravity field perturbations corresponding to changes in subsurface homogeneity induced by density and stress variations

Survey Altitude and speed

3,000 meters and 500km/hr

The SFD® Sensors Three systems of multiple sensors

DAQ 2,000 samples/second/sensor

GPS Tracks flight lines

ONSHORE SHALLOW WATER DEEP WATER


SOURCE MIGRATION TRAP RESERVOIR SEAL

The Five Components of a Petroleum System Analysis

SFD® verifies the presence of a trap area

SFD® identifies, locates and ranks potential reservoirs

SFD® confirms lateral and vertical seal

SFD® Only Responds if All Three Are Present

Where Does SFD® Demonstrate Value in the Exploration Process?

Provides a Unique and

Critical set of information in the exploration

process

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Background

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SFD®- Value Proposition Current exploration challenge: High costs – Low success rates – Smaller Discoveries

Basin/Block Analysis

Select optimal leads

TIME AND CAPITAL INTESNTIVE PROCESS

Exploratory Drilling

Serious Financial Risk Global Failure Rates:

Onshore: 82% Offshore: 93%

Average cost/dry well:

Onshore: $1M-$60M Offshore: $25M-$280M

Focused Exploration

SFD® Technology Critical Subsurface Information

Identifies Trapped fluid accumulations Confirms Trap Integrity

(Trap, Seal and Reservoir) Correlates with Seismic data attributes

Prioritized Drilling

Higher Chance of Success SFD® Proven Success rates: > 60%

Significant reduction in:

Finding costs G&G Costs &Timeline

Significantly lower finding costs with greater success rates

Primary reason for failure No Trap No Seal

Non Commercial Negative Economics Breached structures

Due to lack of trapped potential

hydrocarbon accumulation

CO

NV

ENTI

ON

AL

PRO

CES

S SF

D® S

OLU

TIO

N


Background

7

Multiple applications providing strategic benefits in the exploration cycle

Diverse SFD® Applications

Pre Seismic

• Optimize G&G work program

• Focus Seismic Programs

• Reduce seismic costs

• Analyze area prospectivity

• Survey sensitive or in-accessible areas

Post Seismic

• Focused seismic data evaluation

• Prioritize seismic prospects

• Focused geophysical studies

• New Geological play evaluation

• Near field/upside field development

Executive Decisions

• Block relinquishment

• Bidding round decisions

• Investment/farm-in decisions

• Budget allocations

• Work commitment extension decisions

• Block participation

Profitability

• Early block prospectivity

• Focused allocation of funds/Investment

• Reduce seismic and other exploration cost

• Early exploration risk assessment

• Reduce dry well costs


Background

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A patented, proven and established technology

Technical Papers validating the Efficacy of the technology

Further to a successful technical

evaluation of the technology, PEMEX - National Oil Company of Mexico has written a joint technical paper in

2013.

Upon completion of a successful project for PPL – Pakistan Petroleum Limited, the National Oil Company of Pakistan, a joint technical paper was

written in 2012.

Established Value in the Exploration Cycle

SFD® Technology is established as a key focusing tool in hydrocarbon exploration and has been included for Exploration Work Credits in the

following jurisdictions:

PAKISTAN BOLIVIA

COLOMBIA ARGENTINA

Successful projects completed for the following clients

(Case studies available on request)

Client references and recommendations letters are available on request


Reliability of SFD® Recommendations

WILDCAT - DST

No. of SFD® recommendations drilled successfully (Commercial discoveries made) 14

19 SFD® Recommendations drilled to date

73% SFD® SUCCESS RATE

Where SFD® and seismic prospects correlated Average OOIP/drill : >150 MMBBL

Average OGIP/drill : > 100 BCF

WILDCAT – P&A

No. of SFD® recommendations drilled unsuccessfully (NO commercial discoveries made)

5

9

Onshore

18%

Offshore

9% INDUSTRY SUCCESS RATES

Based on the applications of all current technologies and

G&G processes

14 seismically qualified prospects surveyed and NOT RECOMMENDED by SFD® drilled

Dry wells

79%

Non Commercial Discoveries Average OOIP/drill : < 5 MMBBL

Average OGIP/drill : < 1 BCF

21%

Unparalleled Risk Mitigating tool for Oil and Gas Explorers and Project Investors alike


NXT Revenue Streams

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SFD® Survey Fee for Service

SFD® Retail rates are currently at $1500 per line kilometer.

An average survey for a 5000 sq. kilometer block would cost a client

$3.5 million. SFD® Data Sales NXT owns over 100,000 line km of proprietary SFD® Data that is being prepared for sale to potential clients.

Strategic Royalty Agreements

Existing GORR contracts in Canada (Pengrowth – BC Horn

River Basin, Alberta – Swan Hills)

Vertical Business Model

Equity ownership in strategic global assets by investing

proprietary data and through third party financing


Offices/Agents Potential Project Opportunities Completed Projects

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NXT’s Global Presence


Over $100 Million Worth of Potential Contracts in the Pipeline

NXT’s Pipeline of Contract Opportunities

CONTRACTS

# Potential No. of Contracts Revenue received

PHASE 3: Contract Negotiations

PHASE 2: Technical Discussions

PHASE 1: Qualified Leads

Earn

ing

Pote

ntia

l (U

S $M

M)

0

5

10

15+

Latin

Am

eric

an

Cou

ntrie

s

5+

Arg

entin

a

2

Boliv

ia

3

3

Sri L

anka

1

2

Signed Contracts Potential contracts Additional Contract ops

Qat

ar

1

Sene

gal

3

Nig

er

1

Paki

stan

Nam

ibia

5+

1 1 Li

beria

Seyc

helle

s 1

Indo

nesia

Kuw

ait

2

2+

Mal

aysi

a

2+

Gha

na

Mex

ico

2 UA

E

Russ

ia

1

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Background

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NXT Growth Prospects

Robust Sales funnel with over $100 million in

estimated revenue potential.

GROWTH POTENTIAL Currently in discussions with Mexico, Ghana,

Malaysia, Senegal for

major basin study projects.

UPCOMING MAJOR PROJECTS Vertical projects

under discussions with several entities

that include proprietary data sales

DIVERSIFIED REVENUE SFD® identified

leads in Argentina and Pakistan

currently being prepared for drilling

further validating SFD® strategic

value.

RELIABILITY & VALIDATION Pending major

project award in 2017 from Sri

Lanka estimated at US$29 million.

Refer to latest press release on NXT

website.

LARGE REVENUE PROJECTS


Background

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2017 Critical year for key milestones Direct results of major strategy shift and marketing drive undertaken in 2016

Pending official announcement of 3 major SFD® discoveries in Mexico

and Argentina

Engaged in final stages of discussions for major basin

level survey projects globally

Launching a wholly owned subsidiary to monetize SFD®

identified prospects in Canada

In discussions with three Super Majors currently to test,

validate and use the technology shortly

Several projects under negotiations where NXT gets a

bonus royalty position SFD® prospects

In final stages of a US$28 million survey contract award. (NXT’s largest year to date

contract)

Strategically focused towards global growth


Current Capital Structure

TSX : SFD

52 Week High: $1.70

52 Week Low: $1.00

Average Daily Volume: 7,583 Shares

Capitalization Share Outstanding (in Millions)

Cash and Short-term Investments

as at 31.12.16

Approximate cash on hand $1.9 Million

Debt-Free Balance Sheet

Strong Financial Position

53.9 Common shares issued

3.2 Stock options (average exercise price $1.33)

57.1 Fully diluted number of shares

35% of Fully Diluted Shares Owned by Directors/ Management

OTC QB: NSFDF

52 Week High: US $1.25

52 Week Low: US $0.74

Average Daily Volume: 7,700 Shares

Listed on TSX since 22 March 2016 (Previously TSX Venture)

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2016 Revenue $1.4 Million

Pre Tax Loss $8.7 Million

Net Loss $9.1 Million


NXT Management and Advisors Management Non-Executive Directors Advisory Board

GEORGE LISZICASZ Chairman and CEO

BEV STEWART, CPA, FCCA Chief Financial Officer

CHARLES SELBY Caledonian Royalty Corp.

MICKEY ABOUGOUSH Formerly Teknica Overseas Ltd.

TOM VALENTINE Norton Rose & Fullbright LLP

JOHN TILSON Business Advisor

BRUCE WILCOX Manhattan Institute, Board of Trustees

DR. GEORGE IUSCO Formerly Head of Acquisition and Exploration, Repsol

HON. GEORGE ALLEN Former Governor of Commonwealth of Virginia and U.S. Senator

DR. CLEVELAND JONES State University of Rio De Janeiro

DR. ARIEF BUDIMAN University of Calgary, Canada

Extensive Industry Experience

Solid Global Experience Outstanding

Scientific Credibility

RASHID TIPPU, MSC Geophysics Dir. of Geoscience, Asia, MEA

ENRIQUE HUNG, MSC Geophysics Dir. of Geoscience, LATAM

SAJID SAYEED Dir. Global Business Development

MR. THOMAS BRECKLES CEO & Managing Director, BCP Capital Advisors TODD CHUCKRY

Dir. Of Operations

Dr. XIAN GUI PhD., Material Science Dir. of Research & Development

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The next generation of airborne geophysical survey technology

NXT Energy Solutions

Thank You

investor presentation nxt energy solutions may 2017 · nxt energy solutions is a canadian airborne...

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