nxt energy solutions · 2015. 10. 20. · reliability of sfd® recommendations . 4. new field...

1 © 2015 NXT Energy Solutions Inc.

The new class of gravity-based geophysical survey technology

NXT Energy Solutions

October 2015 * Terms and Conditions of use: This electronically-transmitted presentation (Microsoft Power Point slides) belongs to NXT Energy Solutions Inc. (“NXT”) and is offered for your personal use. All rights are reserved. This presentation may not be distributed, duplicated or reproduced without the express written consent of NXT, except for the purposes of review. The information contained here is for the personal use of the reader and may not be incorporated into publications, databases, or software programs without the written consent of NXT. Making copies of this presentation or any portion for any purpose other than your personal use is prohibited.

Investor Presentation


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.


NXT Energy Solutions Inc. (“NXT”)

TSX-V: SFD

OTC QB: NSFDF

52 Week High: $2.73

52 Week Low: $0.91

Average Daily Volume: ~45,000 Shares

Capitalization Shares Outstanding (in millions)

Finances

Strong cash position

Debt-Free Balance Sheet

A Publicly Traded, Canadian Geophysical Service Company

53.3 Common shares issued

3.1 Stock options (average exercise price $1.20)

56.4 Fully diluted number of shares

36.2% of shares owned by Directors and Management 2015 Forecast

Revenues US $14.1 Million


“…finding new oil is getting harder...If you look at the size of the oilfields discovered, they get smaller and smaller at a heartbreaking rate.”

Jeremy Grantham, GMO Oil’s New Math, FORTUNE Magazine, February 2015

Continually more risky and expensive to find oil and gas

Discoveries are smaller and

farther afield

Low oil prices have demolished

exploration budgets

4

Challenges Facing Today’s Oil and Gas Industry

Industry looks to Conventional Hydrocarbon Exploration

5 © 2015 NXT Energy Solutions Inc. 5

SFD® SURVEY METHOD • Airborne, gravity-based

geophysical system, utilized worldwide to identify areas conducive to fluid entrapment

SFD® SURVEY OBJECTIVES • Mitigates drilling risks by

identifying areas with trapped fluid potential

• Rapidly assess prospectivity of vast areas

• Identify “Prospect Leads” to focus exploration projects

LEADING E&P COMPANIES HAVE ALREADY BENEFITTED USING SFD® METHOD • Gaining acceptance worldwide

A Next Generation Geophysical Survey Technology A Unique Solution: Stress Field Detection, SFD®


SFD® Survey System on Citation 560 jet aircraft

6

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

The SFD® system is compact and rapidly deployed Survey altitude and speed 3,000 meters and 500 km/hr

The SFD® Sensors Three systems of multiple sensors 2,000 samples / second / sensor

GPS Tracks flight lines

TECHNICAL PAPERS • In 2013 NXT published two joint technical papers with

the NOCs of Mexico and Pakistan

CLIENTS (SHORT LIST)

CURRENT OIL MARKET • Industry facing challenges, which presents

opportunities • SFD® technology enables low cost exploration by

helping companies focus their exploration programs to areas that indicate the presence of trapped fluids

© 2015 NXT Energy Solution, Inc. 7

Why NXT ? PROVEN TECHNOLOGY

AN EXPANDING BUSINESS • High margins can be generated on survey projects • Industry acceptance and use of SFD ® is growing • Securing significantly larger value contracts • History of minimal dilution growth formula • High survey capacity – operations not capital intensive

UNIQUE PROPRIETARY SERVICE Sole Source • Proven, Patent Pending Technology • No direct competitors • Quantum technologies are the future

A VALUE ADDED SERVICE Increase Client Exploration Success • Identify new hydrocarbon reserves • Rapid and cost effective project execution • SFD ® is highly complementary to seismic,

aids in de-risking prospects

VAST MARKET OPPORTUNITY • SFD® market is global, and both onshore and offshore • Ability to acquire proprietary SFD ® data for future sale

Why NXT ?



Over $40 Million Worth of Potential Contracts in the Pipeline NXT’s Pipeline of Contract Opportunities

CONTRACT AWARDED

YTD

x Potential Contracts

PHASE 3: Flight Lines Planned

PHASE 2: Delivered Quote

PHASE 1: Qualified Leads

Earn

ing

Pote

ntia

l (U

S $

MM

)

0

5

10

15

Latin

Am

eric

an

Cou

ntrie

s

5+

Col

ombi

a

1+

US

1+

Arg

entin

a

2

Mal

aysi

a 1

Mex

ico

2+

Bol

ivia

Pak

ista

n

3+

Mari Petroleum Corporation

Signed $1.5 Million

Survey Contract

$13.4 Million survey contract

awarded

2+


In 2012, PEMEX contracted NXT to fly a blind test over a survey area of more than 100,000 square kilometers

PEMEX SFD® Blind Test In Mexico

RESULTS

NXT signed a five-year supply agreement

SFD® has proven to reduce overall exploration risk by identifying trapped fluids. Major cost and time savings. Quick turnaround.

Found 98.9% of total reserves flown (Over 12 Billion BOE)

47 of 64 known fields identified Only missed fields of less than 2 km in lateral extent.

Identified targets show high potential

Recommended SFD® targets show excellent correlation with combined geophysical information, particularly seismic.

10


23 Wells Were Drilled

Surveys in Colombia Llanos Basin - 2009 to 2012 Reliability of SFD® Recommendations

4 New Field Discoveries

NXT Conducted 10 SFD® Surveys for 5 Clients Totalling More than 7,500 Line Kilometers

SFD® SEISMIC

11 Wells Drilled in Areas RECOMMENDED by SFD®

12 Wells Drilled in Areas NOT RECOMMENDED by SFD®

SFD® SEISMIC

0 100% Commercial Discoveries

SFD® Prediction Rate 7 Commercial

Discoveries 64% SFD® Prediction Success Rate

1.25 Billion Estimated BOE OOIP


PRE-SEISMIC

Rapid identification of high- potential prospect leads across many geological settings

SFD® Grid Surveys

POST-SEISMIC

High-grade seismic prospects for reservoir potential

Prioritization reduces drilling risk

Ultra deep water

Salt bound

reservoir

Frontier areas

Sub-Basalt

Resource plays

Geological settings

12

Onshore/Offshore


SOURCE MIGRATION TRAP RESERVOIR SEAL

Five Primary Components of a Sedimentary Basin Analysis

SFD® verifies the presence of a trap area

SFD® identifies, locates and ranks potential reservoirs

SFD® confirms the trap integrity

SFD® Only Responds If All Three Indicators Are Present

Where Does SFD® Demonstrate Value in the Exploration Process?


SFD® Responses from Actual Survey

14

1 2

Example : Density/Stress Anomaly with Trapped Fluid

SFD® Signal

Time

Volta

ge

RESERVOIR

1.8 Tcf

2

SFD® Signal

Time

Volta

ge

Example : Density/Stress Anomaly with no Trapped Fluid 1

Change in Homogeneity


464 MMBBL 2.8 Tcf

Reserves

Rubiales Field, Colombia Gilby Field, Canada Giraldas, Mexico

4,500 MMBBL Reserves

Sample SFD® Signal Responses

325 MMBBL 1.83 Tcf

Reserves

SFD® Anomaly SFD® Anomaly

The Only Tool that Identifies Trapped Fluid presence at Stage 1 of Exploration

SFD® Anomaly


MITIGATING RISK Identify areas that are conducive to trap, reservoir and seal

Eliminate most traps with no reservoir potential

Confirm seismic data before drilling

Increase drilling success

UNIQUE BENEFITS Independent geophysical method

No environmental or community impact

Onshore/offshore application

Works over any terrain

High altitude / high speed surveys

OPTIMIZING EXPLORATION BUDGETS Rapid deployment and quick turn around

Focus your seismic budget

Evaluate block prospectivity before acquisition or relinquishment

Prioritize seismic prospects before drilling

SFD® technology is supported by several proven projects for leading industry clients and case studies that are available on request

16 © 2015 NXT Energy Solution, Inc.

Primary Applications and Advantages of SFD®

STRATEGIC ASSET EVALUATION Invest and hold assets that provide a higher chance of commercial discovery


NXT Management and Advisors Management Non-Executive Directors Advisory Board

GEORGE LISZICASZ Chairman and CEO

GREG LEAVENS, CPA, CA Chief Financial Officer

ANDY STEEDMAN, M.B.A. V.P. Operations

SAJID SAYEED, B.B.A. V.P. Global Business Development

CHARLES SELBY Caledonian Royalty Corp.

MICKEY ABOUGOUSH Teknica Overseas Ltd.

TOM VALENTINE Norton Rose Fullbright LLP

KRISHNA VATHYAM formerly Petrodorado Energy

JOHN TILSON Business Advisor

BRUCE WILCOX Manhattan Institute, Board of Trustees

DR. GEORGE IUSCO 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 Public Company Experience Solid Global Experience Outstanding

Scientific Credibility


Delivering Innovation to the Exploration Industry

NXT Energy Solutions

Thank You

nxt energy solutions · 2015. 10. 20. · reliability of sfd® recommendations . 4. new field...

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