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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
© 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
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
© 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
© 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®
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
© 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
© 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
© 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
© 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
© 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
© 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
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
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
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
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
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”
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
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
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
© 2015 NXT Energy Solution, Inc.
Delivering Innovation to the Exploration Industry
NXT Energy Solutions
Thank You