Frontier exploration areas can offer the largest rewards but obstacles surrounding the acquisition of 2D regional seismic can stand in the way of making the best decisions in a reasonable timeframe. Even if you overcome the obstacles, a 2D seismic program is a costly solution. Acquiring conventional gravity and magnetic data provide a preliminary investigation of basement structures and sediment thickness but does not deliver information about reservoir. Optimal placement of seismic can mean the difference between relinquishing a block and drilling a discovery well.
SFD® represents a new generation of airborne geophysical surveys that can identify areas of reservoir potential within the sedimentary column, so you can focus your seismic programs and G&G resources on realizing it.
SFD® deliverables include a report which identifies and ranks areas for trap and reservoir prospectivity. SFD® interpretation results may be gridded to create a prospectivity map. Integration projects will ensure SFD® results are calibrated to existing G&G data.
2. 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 OTCBB Exchanges accept responsibility for the adequacy
or accuracy of any information contained in this document.
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3. NXT Energy Solutions
Disruptive Patent Pending Airborne Survey Technology for Oil & Gas Exploration
• We fly at 470 kms per hour at an altitude of 3000 meters
• SFD® works onshore, offshore, and over any terrain
• Significantly reduces time, cost, and risk to discovery and no environmental impact.
• The only tool that can detect trapped reservoirs at stage I of the exploration cycle
Profitable and Commercially Proven
• Q1 and YTD record revenue and profit; Two consecutive profitable quarters
• Discoveries in Canada, USA and Colombia
• Repeat customers, Case Studies, Look-back Study
• Commencement of Data Sales
Media Coverage and Exposure
• Testimonials, Newsletters, Articles, Research Coverage, Interviews
Contract and Pipeline Activity is Robust
• Backlog of contracts for balance of 2012
• Largest pipeline ever
• Large proprietary data bank
Vast Market Opportunity
• $12B annual geophysical market
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4. Capitalization
TSX-V: SFD, OTCBB: NSFDF
Capitalization - Shares Outstanding (millions)
39.5 Common shares issued
10.0* Convertible Preferred shares (convert at 1:1, mature Dec 31, 2015)
3.1 Stock options (average exercise price $0.85)
4.5 Warrants (US $1.20 exercise, expire from March 8 to May 4, 2014)
57.1 Fully diluted # of shares
D&O Insider Ownership – 15.9% Basic, 32% Fully diluted
52 Week High/Low: $0.56 - $1.17
Debt-Free Balance Sheet ~ $2.5 million cash
* Does not represent debt or debt service…converts 1:1 to common on achievement of milestones
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5. We identify the best oil and gas prospects in 1/10th of the
time, and 1/10th of the cost of seismic methods onshore
Focuses costly seismic resources on high-graded prospect areas.
SFD® shows explorers where to shoot. Seismic shows them where to drill.
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6. 115 km Seismic vs. 2,500 line kms SFD®
Data Coverage for $3.5 Million
2500
2000
Line Kilometers
1500
1000
500
0
2D Seismic SFD 5,000 sq. km.
Survey Method SFD ® (5x5)
Seismic
20x more ground covered
Eliminates 90% of reconnaissance seismic
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7. SFD ® Applications
Identification of trapped reservoirs
• Kick-Start New Basin Evaluation
• Conduct Rapid Prospect-Scale Reconnaissance
• Evaluate Bid Round Blocks
• Explore Over Water and Difficult Terrain
• Optimize Seismic Surveys
• Verification of Prospects selected by Seismic
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8. Technology
• Subsurface stress is caused by tectonic movements. Stress can either be in the
form of compression, stretching/tensile, or shear stress (e.g. tearing paper sheet)
• Stress affects the gravitational field potential and causes distortions in the field.
Fluid trapping reservoirs will affect the stress around them.
• Thus, these stress changes will impact the direction/orientation of the gravitational
field.
• 22 sensors on the aircraft detect orientation changes in the horizontal gravity field
‘SH Max’ is
the direction
of maximum
horizontal
stress.
SFD sensor
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9. SFD® responds to perturbations in the gravity field
related to changes in stress direction
Gravity field is distorted by stress
Discontinuities affect
regional/local stress distribution
SH max
SH min
changes in stress orientation
entering reservoir
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10. Robust Contractual and Pipeline Activity
Selected list of recent contracts and near-term pipeline objectives.
Status Location Value
Colombia,
Complete $ 3.5 million
Guatemala
Complete Argentina $1.65 million
Completion in Q4-12 Mexico $ 4.7 million
Near-term
Objectives
Contracted South Asia $ 2.66 million
Pipeline Latin America $ 6.0 million
Pipeline Paraguay $ 3 million
Pipeline Colombia $ 1 - $ 5 million
> $20 million in sole source quotes
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11. Current and Future Revenue Streams
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. Royalty
Existing GORR contracts in Canada (Pengrowth
~ BC Horn River Basin; Alberta ~ Swan Hills)
4. Vertical Expansion
Equity ownership, long term contracts
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12. Vast Market Opportunity
2010 E&P Market:
$447 Billion $12 Billion
Global Geophysics
Market 1% = $120 million
NXT Revenue Targets
2012 $13 Million 0.11%
2013 $20 Million 0.17%
2014 $40 Million 0.33%
Best Previous Year - $5.3 Million
Source: Spears Oilfield Market Report, 2010; Barclay’s Original E&P Spending Survey, 2010; NXT Market Analysis
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13. Record Revenue and Profitability in Q1’12
and 2012 YTD
Q2 2012 Q2 2011 Q1 2012 Q1 2011
Survey Revenue $ 2,394,863 $ 144,650 Survey Revenue $ 2,815,320 $ -
EBITDA $ 243,806 $ (1,346,706) EBITDA $ 501,400 $ (703,466)
Net Income (Loss) $ 30,660 $ (1,485,227) Net Income (Loss) $ 337,928 $ (792,717)
Basic and Diluted Earnings (Loss) per share $ - $ (0.02) Basic and Diluted Earnings (Loss) per share $ 0.01 $ (0.02)
YTD 2012 YTD 2011
Survey Revenue $ 5,210,183 $ 144,650
EBITDA $ 745,206 $ (2,050,172)
Net Income (Loss) $ 368,588 $ (2,277,944)
Basic and Diluted Earnings (Loss) per share $ 0.01 $ (0.04)
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14. Board and Management
Management Non-Executive Geosciences
Directors Advisory Board
George Liszicasz Charles Selby
Chairman & CEO Caledonian Royalty Corporation
Dr. George Iusco
Repsol
Greg Leavens, C.A. Mickey Abougoush
Chief Financial Officer Teknica Overseas Ltd.
Andy Steedman, M.B.A Tom Valentine
Norton Rose LLP Dr. Carlos Vargas
V-P Operations University of Colombia
Brian Kohlhammer
Grafton Withers, M.B.A Delphi Energy Corp.
V-P Marketing & Sales Dr. Cleveland Jones
John Agee
Business Advisor State Univ. of Rio De Janeiro
Extensive public Solid global Outstanding
company experience management experience scientific credibility
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15. Highlights
• Disruptive Technology for Oil & Gas Exploration
• Profitable and Commercially Proven
• Contract and Pipeline Activity is Robust
• Vast Market Opportunity
THANK YOU!
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