CORPORATE PRESENTION (updated April 1, 2014 ) 1 A PROVEN, INNOVATIVE TECHNOLOGY FOR HYDROCARBON...

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CORPORATE PRESENTION (updated April 1, 2014) 1 A PROVEN, INNOVATIVE TECHNOLOGY FOR HYDROCARBON EXPLORATION

Transcript of CORPORATE PRESENTION (updated April 1, 2014 ) 1 A PROVEN, INNOVATIVE TECHNOLOGY FOR HYDROCARBON...

Page 1: CORPORATE PRESENTION (updated April 1, 2014 ) 1 A PROVEN, INNOVATIVE TECHNOLOGY FOR HYDROCARBON EXPLORATION.

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

Page 2: CORPORATE PRESENTION (updated April 1, 2014 ) 1 A PROVEN, INNOVATIVE TECHNOLOGY FOR HYDROCARBON EXPLORATION.

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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Page 3: CORPORATE PRESENTION (updated April 1, 2014 ) 1 A PROVEN, INNOVATIVE TECHNOLOGY FOR HYDROCARBON EXPLORATION.

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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)

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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

Page 7: CORPORATE PRESENTION (updated April 1, 2014 ) 1 A PROVEN, INNOVATIVE TECHNOLOGY FOR HYDROCARBON EXPLORATION.

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

Page 8: CORPORATE PRESENTION (updated April 1, 2014 ) 1 A PROVEN, INNOVATIVE TECHNOLOGY FOR HYDROCARBON EXPLORATION.

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)

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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

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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

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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)

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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

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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):

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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. 

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Programa operativo

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1

2

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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)

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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

Page 23: CORPORATE PRESENTION (updated April 1, 2014 ) 1 A PROVEN, INNOVATIVE TECHNOLOGY FOR HYDROCARBON EXPLORATION.

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

Page 24: CORPORATE PRESENTION (updated April 1, 2014 ) 1 A PROVEN, INNOVATIVE TECHNOLOGY FOR HYDROCARBON EXPLORATION.

THANK YOU !

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