NXT Energy Solutions The new class of gravity-based geophysical survey technology

Transcription

1 NXT Energy Solutions The new class of gravity-based geophysical survey technology October 2015 Investor Presentation * Terms and Conditions of use: This electronically-transmitted presentation (Microsoft Power Point slides) belongs to NXT Energy Solutions Inc. ( NXT ) and is offered for your personal use. All rights are reserved. This presentation may not be distributed, duplicated or reproduced without the express written consent of NXT, except for the purposes of review. The information contained here is for the personal use of the reader and may not be incorporated into publications, databases, or software programs without the written consent of NXT. Making copies of this presentation or any portion for any purpose other than your personal use is prohibited. 1

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 OTC Exchanges accept responsibility for the adequacy or accuracy of any information contained in this document. 2

3 NXT Energy Solutions Inc. ( NXT ) A Publicly Traded, Canadian Geophysical Service Company Capitalization Shares Outstanding (in millions) Finances TSX-V: SFD OTC QB: NSFDF 52 Week High: $ Week Low: $0.91 Average Daily Volume: ~45,000 Shares 53.3 Common shares issued Stock options (average exercise price $1.20) Fully diluted number of shares 36.2% of shares owned by Directors and Management Strong cash position Debt-Free Balance Sheet 2015 Forecast Revenues US $ 14.1 Million 3

4 Industry looks to Conventional Hydrocarbon Exploration Challenges Facing Today s Oil and Gas Industry Continually more risky and expensive to find oil and gas Discoveries are smaller and farther afield Low oil prices have demolished exploration budgets finding new oil is getting harder...if you look at the size of the oilfields discovered, they get smaller and smaller at a heartbreaking rate. Jeremy Grantham, GMO Oil s New Math, FORTUNE Magazine, February

5 A Unique Solution: Stress Field Detection, SFD A Next Generation Geophysical Survey Technology SFD SURVEY METHOD Airborne, gravity-based geophysical system, utilized worldwide to identify areas conducive to fluid entrapment SFD SURVEY OBJECTIVES Mitigates drilling risks by identifying areas with trapped fluid potential Rapidly assess prospectivity of vast areas Identify Prospect Leads to focus exploration projects LEADING E&P COMPANIES HAVE ALREADY BENEFITTED USING SFD METHOD Gaining acceptance worldwide 5

6 SFD Survey System on Citation 560 jet aircraft SFD survey system detects minute gravity field perturbations corresponding to changes in subsurface homogeneity induced by density and stress variations The SFD system is compact and rapidly deployed Survey altitude and speed 3,000 meters and 500 km/hr The SFD Sensors Three systems of multiple sensors 2,000 samples / second / sensor GPS Tracks flight lines 6

7 CLIENTS (SHORT LIST)? Why NXT PROVEN TECHNOLOGY TECHNICAL PAPERS In 2013 NXT published two joint technical papers with the NOCs of Mexico and Pakistan CURRENT OIL MARKET Industry facing challenges, which presents opportunities SFD technology enables low cost exploration by helping companies focus their exploration programs to areas that indicate the presence of trapped fluids 2015 NXT Energy Solution, Inc. 7

8 ? Why NXT A VALUE ADDED SERVICE Increase Client Exploration Success Identify new hydrocarbon reserves Rapid and cost effective project execution SFD is highly complementary to seismic, aids in de-risking prospects AN EXPANDING BUSINESS High margins can be generated on survey projects Industry acceptance and use of SFD is growing Securing significantly larger value contracts History of minimal dilution growth formula High survey capacity operations not capital intensive VAST MARKET OPPORTUNITY SFD market is global, and both onshore and offshore Ability to acquire proprietary SFD data for future sale UNIQUE PROPRIETARY SERVICE Sole Source Proven, Patent Pending Technology No direct competitors Quantum technologies are the future 8

9 NXT s Pipeline of Contract Opportunities Over $40 Million Worth of Potential Contracts in the Pipeline Earning Potential (US $MM) Latin American Countries 1+ Colombia 1+ US PHASE 1: Qualified Leads 2 Argentina 1 Malaysia 2+ Mexico PHASE 2: Delivered Quote 2+ Bolivia Pakistan PHASE 3: Flight Lines Planned $13.4 Million survey contract awarded Mari Petroleum Corporation Signed $1.5 Million Survey Contract CONTRACT AWARDED YTD x Potential Contracts 9

10 PEMEX SFD Blind Test In Mexico In 2012, PEMEX contracted NXT to fly a blind test over a survey area of more than 100,000 square kilometers RESULTS Found 98.9% of total reserves flown (Over 12 Billion BOE) 47 of 64 known fields identified Only missed fields of less than 2 km in lateral extent. Identified targets show high potential Recommended SFD targets show excellent correlation with combined geophysical information, particularly seismic. NXT signed a five-year supply agreement SFD has proven to reduce overall exploration risk by identifying trapped fluids. Major cost and time savings. Quick turnaround. 10

11 Reliability of SFD Recommendations Surveys in Colombia Llanos Basin to 2012 NXT Conducted 10 SFD Surveys for 5 Clients Totalling More than 7,500 Line Kilometers 23 Wells Were Drilled SFD SEISMIC 11 Wells Drilled in Areas RECOMMENDED by SFD 7 Commercial Discoveries 64% SFD Prediction Success Rate 4 New Field Discoveries 1.25 Billion Estimated BOE OOIP SFD SEISMIC 12 Wells Drilled in Areas NOT RECOMMENDED by SFD Commercial 0 Discoveries 100% SFD Prediction Rate 11

12 SFD Grid Surveys PRE-SEISMIC Rapid identification of highpotential prospect leads across many geological settings POST-SEISMIC High-grade seismic prospects for reservoir potential Prioritization reduces drilling risk Onshore/Offshore Geological settings Ultra deep water Salt bound reservoir Frontier areas Sub- Basalt Resource plays 12

13 Where Does SFD Demonstrate Value in the Exploration Process? Five Primary Components of a Sedimentary Basin Analysis SOURCE MIGRATION TRAP RESERVOIR SEAL SFD verifies the presence of a trap area SFD identifies, locates and ranks potential reservoirs SFD confirms the trap integrity SFD Only Responds If All Three Indicators Are Present 13

14 SFD Responses from Actual Survey Example 1 : Density/Stress Anomaly with no Trapped Fluid Voltage SFD Signal 2 1 Time Example 2 : Density/Stress Anomaly with Trapped Fluid SFD Signal Change in Homogeneity Voltage 1.8 Tcf RESERVOIR Time 14

15 Sample SFD Signal Responses The Only Tool that Identifies Trapped Fluid presence at Stage 1 of Exploration Rubiales Field, Colombia Gilby Field, Canada Giraldas, Mexico SFD Anomaly SFD Anomaly SFD Anomaly Reserves 4,500 MMBBL Reserves 325 MMBBL 1.83 Tcf Reserves 464 MMBBL 2.8 Tcf 15

16 Primary Applications and Advantages of SFD MITIGATING RISK Identify areas that are conducive to trap, reservoir and seal Eliminate most traps with no reservoir potential Confirm seismic data before drilling Increase drilling success UNIQUE BENEFITS Independent geophysical method No environmental or community impact Onshore/offshore application Works over any terrain High altitude / high speed surveys OPTIMIZING EXPLORATION BUDGETS Rapid deployment and quick turn around Focus your seismic budget Evaluate block prospectivity before acquisition or relinquishment Prioritize seismic prospects before drilling STRATEGIC ASSET EVALUATION Invest and hold assets that provide a higher chance of commercial discovery SFD technology is supported by several proven projects for leading industry clients and case studies that are available on request 2015 NXT Energy Solutions Solution, Inc. 16

17 NXT Management and Advisors Management Non-Executive Directors Advisory Board GEORGE LISZICASZ Chairman and CEO GREG LEAVENS, CPA, CA Chief Financial Officer ANDY STEEDMAN, M.B.A. V.P. Operations SAJID SAYEED, B.B.A. V.P. Global Business Development Extensive Public Company Experience CHARLES SELBY Caledonian Royalty Corp. MICKEY ABOUGOUSH Teknica Overseas Ltd. TOM VALENTINE Norton Rose Fullbright LLP KRISHNA VATHYAM formerly Petrodorado Energy JOHN TILSON Business Advisor BRUCE WILCOX Manhattan Institute, Board of Trustees Solid Global Experience DR. GEORGE IUSCO Repsol HON. GEORGE ALLEN Former Governor of Commonwealth of Virginia and U.S. Senator DR. CLEVELAND JONES State University of Rio De Janeiro DR. ARIEF BUDIMAN University of Calgary, Canada Outstanding Scientific Credibility 17

18 NXT Energy Solutions Delivering Innovation to the Exploration Industry Thank You 18