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NXT ENERGY SOLUTIONS INC. (NXT) is a publicly traded international airborne geophysical service company based in Calgary, Canada utilizing their proprietary Stress Field Detection (SFD) technology. SFD provides a unique geophysical indicator which can be used early in the exploration cycle to provide an independent assessment of reservoir potential. When combined with seismic and other geologic data, SFD can significantly reduce exploration risks and costs.
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CORPORATE PRESENTATION
(Updated Oct 7, 2013)
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A P R O V E N , I N N O VAT I V E T E C H N O L O G Y F O R
H Y D R O C A R B O N E X P L O R AT 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.com A Canadian Public Company
Expanding worldwide client base (PEMEX, Pacific Rubiales)
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Capitalization
TSX-V: SFD, OTCBB: NSFDF
Capitalization - Shares Outstanding (millions)
41.5 Common shares issued
8.0* Convertible Preferred shares (convert at 1:1, mature Dec 31, 2015)
3.0 Stock options (average exercise price $0.84)
4.5 Warrants (US $1.20 exercise, expire from March 8 to May 4, 2014)
57.0 Fully diluted # of shares
D&O Insider Ownership – 19.6% Basic, 31.5% Fully diluted
52 Week High/Low: $0.56 - $1.65
90 day average trading volume ~ 45,000 shares
Debt-Free Balance Sheet ~ $3.5 million cash
* Does not represent debt or debt service…converts 1:1 to common on achievement of milestones
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Management
Non-Executive
Directors
Geosciences
Advisory Board
George Liszicasz Chairman & CEO
Greg Leavens, C.A.
Chief Financial Officer
Andy Steedman, M.B.A
V-P Operations
Charles Selby Caledonian Royalty Corporation
Mickey Abougoush Teknica Overseas Ltd.
Tom Valentine Norton Rose LLP
Krishna Vathyam Petrodorado Energy
John Agee Business Advisor
Dr. George Iusco Repsol
Dr. Cleveland Jones State Univ. of Rio De Janeiro
Dr. Arief Budiman
Univ. of Calgary, Canada
Extensive public
company experience
Solid global
management experience
Outstanding
scientific credibility
Board, Management and Advisors
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)
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
SFD® Data Acquisition System
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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 Level Basin Level Well Level
Prospect Identification Prospect Verification
Cost $30 $110 $300 $1,400 $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
0
500
1000
1500
2000
2500
3000
3500
4000
2D Seismic SFD
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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Prospects identified
by seismic
SFD evaluates
reservoir potential of
prospects
Data integrated to
choose best prospect
and to minimize
drilling risk
Seismic Prospects
SFD lines
Best Prospect
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SH min
SH max
Gravity field is distorted by stress
Discontinuities affect regional/local stress distribution
changes in stress orientation entering reservoir
SFD® responds to perturbations in the gravity field related to changes in stress direction
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The only tool that identifies trapped fluid at Stage 1
of exploration - Disruptive Technology with Global Impact
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® complements other tools, especially seismic
identifies and ranks potential trapped-reservoirs
identifies other major geological anomalies (ex: faults)
identifies natural fractures in resource plays
cannot differentiate reservoir fluid types (water or oil/gas)
cannot determine exact drill location
cannot define depth of reservoir
cannot distinguish the number of stacked reservoirs without
lateral offset
SFD® Capabilities and Limitations
Focus is the key
Cost
Time
Risk
E&P Success
=
LOW FINDING
COSTS
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REDUCES
SFD® Fast Tracks Exploration
Environmental
Footprint
Offices/Agents SFD Projects Proposed SFD Projects
Mexico South Asia Mediterranean
Colombia
Peru & Bolivia
Africa
Programa operativo
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1
2
SFD® - Growing Industry Acceptance
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Highlights of the PEMEX 2012 SFD survey project: $5.8 million
• Covered large varying geological areas and the Gulf of Mexico (e.g. 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 and NXT co-authored a technical paper, which includes SFD® / seismic
correlation.
• The paper was presented at NGO Conference in Cartagena, Colombia July 24.
• The paper won the best exploration paper award at the 6th Annual Congreso
International Bolivia Gas and Energia 2013 Conference.
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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)
SFD® Recommendations vs. Discovery
NXT conducted 10 surveys for 5 clients
totalling more than 7,000 line kilometers
Wells drilled on SFD
recommended leads
11 12
Commercial
discoveries 7 0
Prediction
Success Rate 64% 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 Results Llanos Basin, Colombia (2009-2012):
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2012 – A Record Year - $11 million
Summary of recent contracts and near-term pipeline objectives.
Near-term
Objectives
Status Location US$ Value
Completed Colombia, Guatemala $ 3.5 million
Completed Argentina $ 1.65 million
Completed Mexico $ 5.8 million
Completed Belize $0.5 million
Completed Q1-13 South Asia $ 2.66 million
Follow-up
opportunities
Central & Latin
America $ 15 million
Opportunities Asia $3 - $8 million
Opportunities Other $4 million
In 2012
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Source: Spears Oilfield Market Report, 2010; Barclay’s Original E&P Spending Survey, 2010; NXT Market Analysis
$12 Billion
Global Geophysics
Market
2010 E&P Market:
$447 Billion
1% = $120 million
A Vast Market Opportunity
1. Service Fees 2. Data Sales
In Colombia alone, over 40,000 km of proprietary data have been acquired.
Additional data added with each new survey
3. Royalties Existing GORR contracts in Canada (Pengrowth
~ BC Horn River Basin; Alberta ~ Swan Hills)
4. Vertical Expansion Equity ownership in prospects
Long term service contracts
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
SFD ® Highlights
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Value Added Service - Increase Client Exploration Success • Identify potential hydrocarbon traps
• Rapid and cost effective project execution
An Expanding, High-Margin Business • Have surveyed in numerous countries in multiple geological settings
• Strong repeat business opportunities
• Non dilutive growth formula
Profitable And Vast Market Opportunity • SFD market is global – onshore and offshore
Unique Proprietary Service • Patent Pending
• No direct competitors
• Quantum technologies are the Future