1. NXT ‐ SFD
NXT ‐ SFD®
(“Stress Field Detector”)
Corporate Presentation
p
June 2010 Panama
J 2010 P

2. • SFD® geophysical airborne survey
system for Exploration
• Detection at the atomic scale
• Commercialization with strong client
references
• Offices in North and South America
Citation 560 Survey Aircraft
SFD® Survey Equipment
SFD® Si l I t
Signal Interpretation Theatre
t ti Th t

3. NXT’s Experience
Locations of Completed • Public company ‐ $50 Million dollars
Surveys invested in the development and
commercialization of the technology
• Acquired over 500,000 line km of
q ,
SFD®
• Customers include large IOCs
and NOC’s
• Repeat & references
customers
Middle East • Diverse geologic environments
• Approved in Colombia by ANH to bid
SFD for work commitments
Colombia

4. The NXT Advantage
NXT provides wide area airborne surveys for exploration companies
Overcoming challenges associated with:
O i h ll i t d ith
– Costs of wide areas exploration
– Optimizing seismic programs
– Access issues
• Environment sensitive areas
• Community sensitive or populous areas
• Security restricted areas
• Areas of difficult accessibility
• Areas of poor seismic resolution
– Tight timelines
SFD® solutions deliver unique indicators of structure and reservoir potential

5. Comparison of Geophysical Methods
SFD® Cost, Time and Access Advantages
10,000 sq km
Access, security and environmental Impact
k
m
Low High
0 $5 $10 $15 $20 $25 $30
Frontier Area $30 Million
600km 2D Seismic
2 years
Invasive, high environmental impact
Aeromag / $1.5 Million
Aerogravity 6 months
5000km
Low altitude, low speed - security issues, potential wildlife impact
SFD SSurvey $3 Million
2500 line km 3 months
High altitude, high speed – minimal impact
0 3mo 6mo 9mo 1year 2 years
Timing

6. Frontier and Technical Evaluation Area
Deliverables
D li bl
Seismic
• Products
– SFD Report
• Ranking of trap and reservoir
2A prospectively
Wide Area SFD Grid – Prospectively map for wide area
(grid) SFD
100km • 5km to 20km grid spacing
– Trap and reservoir quality ranking
T d i li ki
of SFD Regional lines
• Seismic analogs
100km
• Field analogs
2B
2B+ • Regional lines
Regional lines
• Benefits
– Enable purchasing or relinquishing
decisions
– Identify areas for seismic
Identify areas for seismic
acquisition
– Onshore / offshore
Frontier Exploration Block
Frontier Exploration Block

7. Integration of Geophysical Methods
Integration of Geophysical Methods
• SFD has certain response that is Conventional 3000km SFD with
statistically associated with traps Exploration 600 km 300 km Seismic
seismic
in an exploration area S G d
SFD Grid
100km
00k Seismic
• Effectively seismic with SFD
searches with a resolution of the Prospect2
Prospect1
SFD grid
Prospect3
Trap Fault Target Basement
(Reservoir + seal) Detection Depth Depth
hydrocarbon or
200km
m
water Prospect4
P t4
Stratigraphic &
Yes No No
SFD Structural Prospect5
No Possible No Yes
Aero‐gravity
Aeromagnetics No Yes No No
Require Special
acquisition and Yes Yes Yes
Seismic AVO

8. Comparison of Seismic Coverage Map
Comparison of Seismic Coverage Map
Frontier Block
• 25x25 Seismic grid
• P90 minimum
P90 minimum
detectable
reservoir size is
289 Sq km
• Significant
potential will be
missed
• What is the value
What is the value
of replacing the
two most marginal
lines of seismic of
with SFD?
Proposed Seismic
Trap

9. SFD Coverage Map
SFD Coverage Map
• 10x10 grid
• P90 minimum
P90 minimum
detectable
reservoir size is
25sqkm
• Coverage map
indicating 1km
reservoir detection
distance from flight
distance from flight
line
• Field analogs are
not required
except for sensor
QC
Proposed SFD Grid
Trap

10. Comparison of Seismic Coverage Map
Comparison of Seismic Coverage Map
Seismic planed from SFD survey
• In sensitive areas
where seismic is
expensive
• You can design
your survey to
minimize cost and
i i i t d
timelines
• The Seismic
program can be
program can be
planned to assess
all SFD anomalies
• Seismic program
now has the
effective resolution
Proposed Seismic based on SFD Trap of SFD ie. 25 sqkm

11. SFD OVERVIEW
SFD OVERVIEW

12. Tectonic impact‐ Regional stress direction
(Western Canada Sedimentary basin)
Regional horizontal stress
direction is controlled by
direction is controlled by
tectonic forces
Horizontal stresses define
the migration pathways,
reservoir orientation and
fluid expulsion
SFD sensor couple and
adopt to regional (large
scale) background stress
l )b k d t
direction

13. Reservoir Effect on Horizontal Stress Field
• Locally a trap will alter
the regional direction of
horizontal stresses
• Principal horizontal
stress components are
redistributed due to:
– Porosity
y
– Trapped Fluids
– Fracturing
– Reservoir Pressure
• SFD detects changes in
SFD detects changes in
the direction of the
stress field
• These directional
changes indicate a
changes indicate a
change in stress
anisotropy located at the
edges of traps

14. SFD responds to Changes Horizontal Stress
Orientation Change
®
SFD Sensor respond to perturbations related to changes in horizontal stress direction
Sensor respond to perturbations related to changes in horizontal stress direction
SFD ® Sensor couples with the direction of Horizontal Stress
p
SFD ® Method uses gravity as a transfer medium
Method uses gravity as a transfer medium
SH max
(Direction of the
(Direction of the
Maximum Horizontal Stress)
changes in stress orientation
SFD is acquired at
450 km/hour,
450 km/hour, entering reservoir
with a range of
1,800km and
at altitudes
between 2,500
and 5,000 meters

15. Significance of atomic scale mass detector
Significance of atomic scale mass detector
The SFD® sensor element coupling to the force field of
gravity as ‘wave’ renders momentum transfer
negligible, hence the anisotropy in horizontal field
becomes detectible.
Sailors on the deck of aircraft carrier
Sailors on the deck of aircraft carrier
Ping Pong balls
Which objects feel the small ripples in the water?
Which objects ‘feel’ the small ripples in the water?

16. What the SFD device does and does not respond to…?
• SFD is designed to ‘ride’ the regional density/gravity field. The properties of
the sensor (mass, scale etc) are chosen to continuously maintain its
equilibrium state.
• Magnitude changes in the density/gravity will not affect the equilibrium state
of the SFD sensors
f th SFD
– However, strong lithologic contrasts may ‘knock’ the sensor out of its equilibrium (which is a
recognizable signal response)
• In order to detect variations of the in‐situ ‘stress‐states’ the sensors are
moved across the field at high velocity in a straight line.
– Aircraft turning (it perceived by the sensor that stress orientation is changing)
• SFD sensor does not respond to topographic changes (shear does not exist at
surface, only at depth)

17. Gilby Oil Field crossing ‐ SFD Signal (G2 sensor)
Stratigraphic
Stratigraphic
High Prospectivity Trap
1A+ 2A
2A+
Structural
Trap
p
SFD Flight Lines
Low Prospectivity
2A

18. Gilby Oil Field N1A90512 – SFD Sensor “Gengar2”
Western Canada
•Example of a stratigraphic play
Western Canada
S dt ti l
•Sand truncation play 1‐ Adsett
1 2‐ Halfway
3‐ Bullmoose
•77.6 MMbbl oil and 56 Bcf of Gas in place. 2
4‐ Dunvegan
5‐ Puskwa
•30 ft of net pay 4 6‐ Goodwin
•Avg 27 API at a 3 7‐ Gilby
5
8‐ Hayter
•Depth of 7000 ft. 6
•Shallow coal bed methane Colombia
C l bi
9‐ Rubiales
7 8
Interface
Structural
Sand
Carbonate
Heavy Oil
Flight direction
Gilby Oil Field
(Jurassic)

19. Example of SFD sensor responding to shear not the large density change
SFD Sensor “Micro” regional response : Llanos Basin to Andes Mountains (N1A00225)
Shear Fault zone
Shear Fault zone

20. SFD comparison to gravity over the El Dificil field
–LLower Magdalena, 318 BCF, 7MMBBL
M d l 318 BCF 7MMBBL
El Dificil

21. Colombia
Technical Evaluation Area
100km 12
00km
10
Colombia
9‐ Rubiales 11
10‐ Tacacho 9
11‐ Cusiana
12‐ Chuchupa
h h
10
Structural
Sand
Carbonate
C b t
Heavy Oil
FRONTIER AND TECHNICAL
EVALUATION AREA SOLUTIONS:
PACIFIC RUBIALES ENERGY

22. Business results of the Tacacho block survey
Business results of the Tacacho block survey
Reservoir Potential Map
100km
• ANH approved ‐ 100km seismic
commitment be replaced with SFD®
commitment be replaced with SFD®
program fully covering the Tacacho
TEA block in Putumayo Basin
100km
• Return on SFD® program
– SFD identified areas of high reservoir
SFD identified areas of high reservoir
potential
(example not from Tacacho)
– Pacific Rubiales Energy (PRE)
converted SFD® recommended areas
to two Exploration blocks
• Even areas with sparse seismic
Even areas with sparse seismic
– PRE committed to the acquisition of
480 km ($8MM) of seismic to confirm
prospects
– Farmed out 49.5% of its working
interest to Petrodorado
interest to Petrodorado Ltd
– SFD is approved in Colombia by ANH
to bid for work commitments

23. Colombia
A N
May 25, 2009
SFD® signal over
Rubiales
Rubiales field
B
v)
Voltage (v
14km
Signal relaxation
A Reservoir indicator B
Time (seconds)

24. A N
May 25, 2009
SFD® signal over
Rubiales field
B
v)
Voltage (v
High frequency
character anomalous
from background
Is a strong reservoir
indicator
A B
Time (seconds)

25. Testimonial
“The SFD® survey system
allowed us to do a timely
evaluation of our TEA block in
l ti f TEA bl k i
the Putumayo basin. We are
making extensive use of the
SFD® data concurrently with the
rest of the information to select
rest of the information to select
the best areas for future
exploration.”
Dr. Jairo
Dr Jairo Lugo
Sr. Vice President, Exploration
Pacific Rubiales Energy

26. Chuchupa
DM‐CH
SFD® signature from
g
offshore Colombia
Chuchupa is a 5.5 TCF Gas
Field – Signal relaxation
sequence with high
sequence with high
frequency effects
Chuchupa Gas Field

27. May 25, 2009
N SFD® signals over
signals over
Cupiagua field –
B Colombia ‐ A Billion
Cupiagua
BBL oil field
A
Reservoir
Reservoir
development
A B

28. Dunvegan Field, AB – Debolt Formation Fault Trap
Reservoir
R i
indicator
SFD® Flight line
Dunvegan Field in Alberta
Canada has produced 1.1 Tcf of
gas
from Mississippian Debolt
formation with additional light
oil production from Devonian
carbonates. The area is still
under development drilling and
new pools are found within
deeper zones related to
faulting.
faulting

29. Western Canada
Halfway Erosional Stratigraphic Play 2
1
Western Canada
1‐ Adsett
2‐ Halfway
3‐ Bullmoose
4‐
4 Dunvegan
5‐ Puskwa
4
6‐ Goodwin
Identification of a facies change 3
5
6
7‐ Gilby
8‐ Hayter
Identification of reservoir within new background 7 8
Colombia
9‐ Rubiales
Point Anomaly
Point Anomaly Structural
Sand
Buick Creek Carbonate
Heavy Oil
~500 BCF
~7 MSTB
Currant –
Halfway A
Rigel –
2.6 MSTB Dunlvy F
Signal Buildup
392 BCF
Signal Buildup
Baseline drop
Frequency Increase
Relaxation / Character Change
No sand Halfway Fm. sandstone
Erosional edge

31. Review of statistic to validate and
calibrate SFD correlation
Well distribution 2A or higher anomalies
• Statistical analysis for SFD 100
90
N
validation
lid i u
m W
80
70
– Detect fields above 500,000 b
e
e
l
60
50
BBLs r l
s
40
30
Series1
– Minimum 2km resolution O
f
20
10
– Can not distinguish between 0
stacked reservoirs BOE Volumes in MSTB
O o u es S
N5E80310 ‐ Non‐anomalous areas‐ well distribution
20
N 18
16
u 14
m W 12
10
b e 8
6
e l 4 Series1
r l 2
0
s
O
f
BOE Volumes in MSTB

32. Summary
y • Possibility to quickly assess
y q y
remote or restricted areas
• Detection and ranking of
SFD quickly and effectively
SFD i kl d ff i l areas with exploration
locates “high‐impact” new
exploration plays potential
• Meet tight dead lines and tight
Meet tight dead lines and tight
budgets
• Identify areas with indications
y
of reservoir and seal
• Focus seismic interpretation
on finding new play concepts
associated with SFD anomalies