CORPORATE PRESENTION (updated April 1, 2014 ) 1 A PROVEN, INNOVATIVE TECHNOLOGY FOR HYDROCARBON...
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Transcript of CORPORATE PRESENTION (updated April 1, 2014 ) 1 A PROVEN, INNOVATIVE TECHNOLOGY FOR HYDROCARBON...
CORPORATE PRESENTION(updated April 1, 2014)
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A P R O V E N , I N N O V A T I V E T E C H N O L O G Y F O RH Y D R O C A R B O N E X P L O R A T I O N
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.
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NXT Energy Solutions Inc. is a service provider to the upstream Oil & Gas Industry:
SFD ® Survey System
Engaged in exploration reconnaissance.
We identify and rank high-potential prospect leads using a unique airborne survey method.
www.nxtenergy.comA Canadian Public Company
Expanding worldwide client base (PEMEX, Pacific Rubiales)
Offices/AgentsSFD Projects Proposed SFD Projects
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CountryE&P
activitiesJoint
PapersPotential
Contracts US$ Value(millions)
Colombia seismic (P) - 2 $ 1.5
Guatemala drilling (I) - - -
Argentinaseismic (C)Drilling (P)
1 (P) - $ 3.5
Belize seismic (I) - 1 -
Mexico seismic (I)drilling (P) 1 multi-year $10.0 +
Pakistan seismic (I)drilling (P) 1 multiple $ 5.0 +
Peru - - multiple $ 4.0 +
Bolivia - - multiple $ 5.0 +
USA - - multiple $ 5.0
Exploration activity on recent SFD® survey areas, and new opportunities
P – planned I – in progress C - completed
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Capitalization
TSX-V: SFD, OTC BB: NSFDF
Capitalization - Shares Outstanding (millions)44.7 Common shares issued
8.0* Convertible Preferred shares (convert at 1:1, mature Dec 31, 2015)
2.8 Stock options (average exercise price $0.90)
1.3 Warrants (US $1.20 exercise, expire May 4, 2014)
56.8 Fully diluted # of shares
D&O Insider Ownership – 18.4% Basic, 31.4% Fully diluted
52 Week High/Low: $0.56 - $2.05
90 day average trading volume ~ 45,000 shares
Debt-Free Balance Sheet ~ US $7.5 million cash
* Does not represent debt or debt service…converts 1:1 to common on achievement of milestones
SFD® Data Acquisition System
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The aircraft
Cessna 560 Citation jet
(fly at 3,000 meters, 500 km/h)
The SFD Sensors
3 systems of multiple sensors
Data recording equipment
(2,000 cycles / second)
Aircraft positioning system
GPS based, tracks flight lines
Rapid identification of high-potential oil and gas prospects at low cost, both onshore / offshore, in any terrain.
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SFD® System
Verification / evaluation of seismic prospects for reservoir potential - thereby reducing drilling risk
SFD® (Patent Pending)
Exploration Criteria and Large Reserves
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5 exploration criteria that must be met for discoveries
• Source• Migration• Trap• Reservoir• Seal
SFD only responds if all three are present
Major exploration areas with large reserve potentials
• Deep water• Salt bound reservoirs• Resource plays• Frontier areas• Sub-Basalt
SFD can assist clients in all areas with no environmental impact
Focus is the key
Cost
Time
Risk
E&P Success =
LOW FINDING COSTS
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REDUCES
SFD® Fast Tracks Exploration
EnvironmentalFootprint
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SFD® System
Exploration spectrum
Aeromagnetics& Gravity
Hi-Res Aeromag
2-D Seismic
3-D Seismic
Drilling
SFD®
Inferred knowledge of Trap & Reservoir detail steadily increases
Gravity Gradiometry
Reconnaissance
Prospect LevelBasin Level Well Level
Prospect Identification Prospect Verification
Cost $30 $110 $300 $1,500 $30,000 $90,000 $10-250 million(Line-km)
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SFD ® grid (5x5) km
2D-Seismic
SFD® - More focused information, quicker and with no environmental footprint
Area = 10,000 Km2
2D Seismic SFD0
500
1000
1500
2000
2500
3000
3500
4000
Line Km
Prospect Identification
SFD® quickly and cost effectively evaluates seismically identified prospects for reservoir potential – reducing drilling risk
Offshore Coverage
Prospect Verification
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Exiting prospects identified by seismic
SFD® evaluates reservoir potential of prospects
Data integrated to choose best prospect and to minimize drilling risk
Seismic ProspectsSFD linesBest Prospect
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Rubiales Field
SH min
SH max
Gravity field is distorted by discontinuities
Stress reflects discontinuities and poroelastic changes
changes in stress magnitude and orientation entering reservoir
SFD® responds to perturbations in the gravity field due to changes in poroelastic properties (stress and fluid)
The only tool that identifies trapped fluid at Stage 1
of exploration - Disruptive Technology with Global Impact
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SFD® signal over Ladyfern Field, Canada
1.62 Trillion cu. ft. Rec.
SFD® Anomaly
Ladyfern Field Signal Response
SFD® signal over Rubiales Field, Colombia
500 million bbls Rec.
SFD® Anomaly
Rubiales Field Signal Response
SFD® Recommendations vs. Discovery
NXT conducted 10 surveys for 5 clients
totalling more than 7,000 line kilometers
Wells drilled on SFD recommended leads
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Commercialdiscoveries7 0
PredictionSuccess Rate64% 100%
Estimated 1.26 Billion BBL OOIP
4 Field Discoveries
Wells drilled in areas rejected by SFD
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Example of NXT Survey ResultsLlanos Basin, Colombia (2009-2012):
SFD® - Growing Industry Acceptance
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Highlights of the US $5.8 million PEMEX 2012 SFD survey project:
• Initial survey covered vast area (over 100,000 sq. km)
• Covered varying geological areas and the Gulf of Mexico (e.g. deep waters, salt traps)
• Survey was designed both as a “blind-test” to assess SFD® correlation with existing geophysical data and producing fields and to identify new exploration prospects
• Total project with SFD® recommendations was delivered in only 4 months
• Project results
• High correlation between SFD and seismic anomalies
• 47 of 64 known field identified, representing 98% of total reserves flown, missed fields less than 2km in lateral extent.
• PEMEX is assessing the potential for additional new SFD® surveys.
• PEMEX and NXT co-authored a technical paper, which includes SFD® / seismic correlations, July 24, 2013.
Programa operativo
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Cuenca Salina del Istmo Golfo Profundo
SE NW
SE
NW
Anomalía PMX-2.16, Segundo orden, Clasificación (1+B+) Buen potencial de trampa, Buen potencial de yacimiento, confiabilidad (1)
Anomalía PMX-2.17, Segundo orden, Clasificación (1+B) Buen potencial de trampa, Potencial moderado de yacimiento, confiabilidad (1)
1. Service Fees
2. Data SalesIn Colombia alone, over 40,000 km of proprietary data have been acquired.Additional data added with each new survey.
3. RoyaltiesExisting GORR contracts in Canada (Pengrowth ~ BC Horn River Basin; Alberta ~ Swan Hills).
4. Vertical ExpansionGoal = Equity ownership in prospectsAdditional long-term survey opportunities.
Expanding Potential Revenue Streams
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Growth Strategy – Organic growth
Where:
- Latin America (core area for NXT)- Asia- Arctic and Atlantic Coast- Mediterranean and Africa
Who:
- National Oil Companies (i.e. PEMEX, Ecopetrol)- Medium sized International (i.e. Pacific Rubiales)
How:
Leverage
- Access - Awareness-
Acceptance- Application
Focus on areas where SFD has a Competitive advantage
Large Land Owners / International Leverage
Remain focused
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Management Non-Executive Directors
GeosciencesAdvisory Board
George LiszicaszChairman & CEO
Greg Leavens, C.A.
Chief Financial Officer
Andy Steedman, M.B.A
V-P Operations
Charles SelbyCaledonian Royalty Corporation
Mickey Abougoush Teknica Overseas Ltd.
Tom ValentineNorton Rose Fullbright LLP
Krishna VathyamPetrodorado Energy
John AgeeBusiness Advisor
Dr. George IuscoRepsol
Dr. Cleveland JonesState Univ. of Rio De Janeiro
Dr. Arief BudimanUniv. of Calgary, Canada
Extensive public company experience
Solid global experience
Outstanding scientific credibility
Board, Management and Advisors
SFD ® Highlights
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Value Added Service - Increase Client Exploration Success • Identify potential hydrocarbon traps• Rapid and cost effective project execution• Highly complementary to other G&G tools
An Expanding, Profitable Business• Have surveyed in numerous countries in multiple geological settings• Strong repeat business opportunities• Non dilutive growth formula
Vast Market Opportunity• SFD market is global – onshore and offshore
Unique Proprietary Service • Patent Pending • No direct competitors• Quantum technologies are the Future
THANK YOU !
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