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© 2015 NXT Energy Solution, Inc. The new class of gravity-based geophysical survey technology NXT Energy Solutions June, 2015 * Terms and Conditions of use: This electronically-transmitted presentation (Microsoft Power Point slides) belong to NXT Energy Solutions and are 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 Energy Solutions, 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 Energy Solutions. Making copies of this presentation or any portion for any purpose other than your personal use is prohibited. Investor Presentation

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Page 1: NXT Energy Solutions · reproduced without the express written consent of NXT Energy Solutions, except for the purposes of review. The information contained here is for the personal

© 2015 NXT Energy Solution, Inc.

The new class of gravity-based geophysical survey technology

NXT Energy Solutions

June, 2015 * Terms and Conditions of use: This electronically-transmitted presentation (Microsoft Power Point slides) belong to NXT Energy Solutions and are 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 Energy Solutions, 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 Energy Solutions. Making copies of this presentation or any portion for any purpose other than your personal use is prohibited.

Investor Presentation

Page 2: NXT Energy Solutions · reproduced without the express written consent of NXT Energy Solutions, except for the purposes of review. The information contained here is for the personal
Page 3: NXT Energy Solutions · reproduced without the express written consent of NXT Energy Solutions, except for the purposes of review. The information contained here is for the personal

© 2015 NXT Energy Solution, Inc.

This presentation contains certain statements which may constitute "forward-looking statements.” Such statements are only predictions and are subject to inherent risks and uncertainties which could cause actual values, results, performance or achievements to differ materially from those expressed, implied or projected in any forward-looking statements. No representation or warranty, express or implied, is made by NXT Energy Solutions Inc. that the material contained in this presentation will be achieved or prove to be correct. Specifically, references to “original oil in place”, or “OOIP”, refer to estimates of unrisked, unproven resource potential, based on parameters derived from existing well data and rock sample descriptions, and general literature, and should be considered as “speculative”.

Except for statutory liability which cannot be excluded, each of NXT Energy Solutions Inc., its officers, employees and advisers expressly disclaims any responsibility for the accuracy or completeness of the material contained in this presentation and excludes all liability whatsoever (including in negligence) for any loss or damage which may be suffered by any person as a consequence of any information in this presentation or any error or omission there from.

NXT Energy Solutions Inc. accepts no responsibility to update any person regarding any inaccuracy, omission or change in information in this presentation or any other information made available to a person nor any obligation to furnish the person with any further information. Investment in NXT Energy Solutions Inc. should be considered speculative.

SFD, patent pending, is a registered trademark of NXT Energy Solutions Inc.

Disclaimer

Page 4: NXT Energy Solutions · reproduced without the express written consent of NXT Energy Solutions, except for the purposes of review. The information contained here is for the personal

4 © 2015 NXT Energy Solution, Inc.

NXT Energy Solutions, Inc. (NXT)

*Does not represent debt or debt service; can be converted prior to Dec 31, 2015 at NXT’s option

TSX-V: SFD

OTC BB: NSFDF

52 Week High: $2. 56

52 Week Low: $0.85

Average Daily Volume: ~45,000 Shares

Capitalization Share Outstanding (in Millions)

Cash and Short-term Investments

Approximately $6 Million

Debt-Free Balance Sheet

A Publicly Traded, Canadian Geophysical Service Company

44.7 Common shares issued

8.0* Convertible Preferred shares (convert at 1:1, mature Dec 31, 2015)

3.1 Stock options (average exercise price $1.08)

55.8 Fully diluted number of shares

36% of Fully Diluted

Shares Owned by Directors and Management

2015 YTD Contracts $15+ Million

Page 5: NXT Energy Solutions · reproduced without the express written consent of NXT Energy Solutions, except for the purposes of review. The information contained here is for the personal

© 2015 NXT Energy Solution, Inc.

“…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

5

Challenges Facing Today’s Oil and Gas Industry

Industry looks to Conventional Hydrocarbon Exploration

Page 6: NXT Energy Solutions · reproduced without the express written consent of NXT Energy Solutions, except for the purposes of review. The information contained here is for the personal

© 2015 NXT Energy Solution, Inc. 6

SFD® SURVEY METHOD

• Airborne, gravity-based geophysical system

• Identifies areas conducive to fluid entrapment

• Rapidly assesses vast areas for prospectivity

• Non-invasive method

SFD® SURVEY OBJECTIVES

• Mitigates drilling risks by identifying trapped fluid potential

• Significantly lowers “finding cost”

• Identifies “Prospect Leads” to focus exploration projects

LEADING E&P COMPANIES

ARE BENEFITING USING

OUR SFD® METHOD

• Works in a variety of geologic settings (onshore/offshore)

• Gaining rapid acceptance worldwide

Introducing the Next Generation Geophysical Survey Technology

A Unique Solution: Stress Field Detector, SFD®

Page 7: NXT Energy Solutions · reproduced without the express written consent of NXT Energy Solutions, except for the purposes of review. The information contained here is for the personal

TECHNICAL PAPERS & PATENT APPLICATIONS

• In 2013 NXT published two joint papers with NOCs of Mexico and Pakistan

• Two Patents Pending

CLIENTS (SHORT LIST)

CURRENT OIL MARKET

• 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

Page 8: NXT Energy Solutions · reproduced without the express written consent of NXT Energy Solutions, except for the purposes of review. The information contained here is for the personal

© 2015 NXT Energy Solution, Inc.

23 Wells Were Drilled

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

8

Page 9: NXT Energy Solutions · reproduced without the express written consent of NXT Energy Solutions, except for the purposes of review. The information contained here is for the personal

© 2015 NXT Energy Solution, Inc.

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.

9

Page 10: NXT Energy Solutions · reproduced without the express written consent of NXT Energy Solutions, except for the purposes of review. The information contained here is for the personal

© 2015 NXT Energy Solution, Inc.

SFD® Survey System on Citation 560 jet aircraft

10

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

Page 11: NXT Energy Solutions · reproduced without the express written consent of NXT Energy Solutions, except for the purposes of review. The information contained here is for the personal

© 2015 NXT Energy Solution, Inc.

SOURCE MIGRATION TRAP RESERVOIR SEAL

The Five 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 Are Present

Where Does SFD® Demonstrate Value in the Exploration Process?

11

Page 12: NXT Energy Solutions · reproduced without the express written consent of NXT Energy Solutions, except for the purposes of review. The information contained here is for the personal

© 2015 NXT Energy Solution, Inc.

SFD® Responses from Actual Survey

12

1 2

Example : Density/Stress Anomaly with Trapped Fluid

SFD® Signal

Time

Vo

ltag

e

RESERVOIR

1.8 Tcf

2

SFD®

Signal

Time

Vo

ltag

e

Example : Density/Stress Anomaly with no Trapped Fluid 1

Change in

Homogeneity

Ladyfern gas field

BC, Canada

Page 13: NXT Energy Solutions · reproduced without the express written consent of NXT Energy Solutions, except for the purposes of review. The information contained here is for the personal

© 2015 NXT Energy Solution, Inc.

PRE-SEISMIC

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

Use SFD® Grid Survey

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

13

Onshore/Offshore

Page 14: NXT Energy Solutions · reproduced without the express written consent of NXT Energy Solutions, except for the purposes of review. The information contained here is for the personal

STRATEGIC ROYALTY AGREEMENTS

• Existing GORR contracts in Canada (Pengrowth ~ BC Horn River Basin; Alberta ~ Swan Hills)

VERTICAL MARKET EXPANSION

• Equity ownership in vertical business models by investing proprietary data.

GEOPHYSICAL SURVEYS

• Revenue generated from offering geophysical services to E&P Companies

SURVEY DATA SALES • SFD® proprietary data library

• Additional data added with each new surveys globally.

Revenue Streams

14

Page 15: NXT Energy Solutions · reproduced without the express written consent of NXT Energy Solutions, except for the purposes of review. The information contained here is for the personal

15 © 2015 NXT Energy Solution, Inc.

Over $40 Million Worth of Contracts in the Pipeline

NXT’s Opportunity Pipeline (fee for service)

CONTRACT AWARDED

YTD

x Potential Contracts

PHASE 3: Flight Lines Planned

PHASE 2: Delivered Quote

PHASE 1: Qualified Leads

Ea

rnin

g P

ote

nti

al

(US

$M

M)

0

5

10

15

Latin

Am

erican

Countr

ies

5+

Colo

mbia

1+

US

1+

Arg

entin

a

1

Mala

ysia

1

Mexic

o

2+

Boliv

ia

2+

Mari Petroleum Corporation

Signed $1.5 Million

Survey Contract

$13.4 Million survey contract

awarded 3+

Afr

ica

2+

Boliv

ia

1

Pakis

tan

Page 16: NXT Energy Solutions · reproduced without the express written consent of NXT Energy Solutions, except for the purposes of review. The information contained here is for the personal

16 © 2015 NXT Energy Solution, Inc.

• Signing of US 13.4 million SFD® Survey

Contract announced on May 12, 2015

• Opened NXT Bolivia office June 3, 2015

• Survey Aircraft with SFD® equipment

and personnel arrived June 5, 2015

• Survey aircraft arrival greeted by

Presidential press conference

• Survey Commenced June 7, 2015

National Oil Company of Bolivia (YPFB) awards NXT US $13.4 contract

Page 17: NXT Energy Solutions · reproduced without the express written consent of NXT Energy Solutions, except for the purposes of review. The information contained here is for the personal

17 © 2015 NXT Energy Solution, Inc.

“We are using this method in every state of Bolivia and it will allow us to correlate with the data we already have to make drilling decisions in the short term. Therefore, thanks to this method we can guarantee to have new reserves now of both liquids and gas in our country.” President of YPFB, GUILLERMO ACHA

“It will be the first experience in exploration with a non-invasive airborne geophysical method which means no damage caused to the environment in order to learn exactly what we have…” President of Bolivia Evo Morales

Major event in Bolivia and a strategic initiative

Page 18: NXT Energy Solutions · reproduced without the express written consent of NXT Energy Solutions, except for the purposes of review. The information contained here is for the personal

18 © 2015 NXT Energy Solution, Inc.

What makes “Vertical” Concept unique?

SFD® is proven to:

Mitigate drilling risk

Reduce finding cost

No competition

Pursue large targets

Exclusive access to a proven

differentiating technology

Profitable at oil prices as low

as $30/bbl

Diversify risk with large

portfolio of exploration leads

Highly experienced

management team

Monetize the asset to

maximize investor return

Repeatable & Consistent

Discover – Sell – Repeat

The Differentiator Vertical Company Unique “niche”

Page 19: NXT Energy Solutions · reproduced without the express written consent of NXT Energy Solutions, except for the purposes of review. The information contained here is for the personal

19 © 2015 NXT Energy Solution, Inc.

? Reserves: TBD

Rubiales Field, Colombia Gilby Field, Canada “Vertical” target

4,500 MMBBL Reserves

Example of “Vertical” identified target

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

Page 20: NXT Energy Solutions · reproduced without the express written consent of NXT Energy Solutions, except for the purposes of review. The information contained here is for the personal

AN EXPANDING, PROFITABLE BUSINESS

• Significant profit margin

• Strong repeat business opportunities

• Non dilutive growth formula

UNIQUE PROPRIETARY SERVICE Sole Source

• Patent Pending

• No direct competitors

• Quantum technologies are the Future

VALUE ADDED SERVICE Increase Client Exploration Success

• Identify new hydrocarbon reserves

• Rapid and cost effective project execution

• Highly complementary to seismic

VAST MARKET OPPORTUNITY

• SFD® market is global: onshore and offshore

Market Opportunity

20

Page 21: NXT Energy Solutions · reproduced without the express written consent of NXT Energy Solutions, except for the purposes of review. The information contained here is for the personal

21 © 2015 NXT Energy Solution, Inc.

NXT Management and Advisors

Management Non-Executive Directors Advisory Board

GEORGE LISZICASZ Chairman and CEO

GREG LEAVENS, C.A. 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

BRUCE WILCOX

Former CEO of Cumberland Associates LLC, Member, Manhattan Institute Board of Trustees

JOHN TILSON Business Advisor

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

Credibility

Page 22: NXT Energy Solutions · reproduced without the express written consent of NXT Energy Solutions, except for the purposes of review. The information contained here is for the personal

© 2015 NXT Energy Solution, Inc.

Delivering Innovation to the Exploration Industry

NXT Energy Solutions

Thank You