NXT Energy Solutions. Investor Presentation. The new class of gravity-based geophysical survey technology. June, NXT Energy Solution, Inc.

Transcription

1 NXT Energy Solutions The new class of gravity-based geophysical survey technology Investor Presentation June, 2015 * Terms and Conditions of use: This electronically-transmitted presentation (Microsoft Power Point slides) belong to NXT Energy Solutions and are 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 Energy Solutions, 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 Energy Solutions. Making copies of this presentation or any portion for any purpose other than your personal use is prohibited.

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3 Disclaimer This presentation contains certain statements which may constitute "forward-looking statements. Such statements are only predictions and are subject to inherent risks and uncertainties which could cause actual values, results, performance or achievements to differ materially from those expressed, implied or projected in any forward-looking statements. No representation or warranty, express or implied, is made by NXT Energy Solutions Inc. that the material contained in this presentation will be achieved or prove to be correct. Specifically, references to original oil in place, or OOIP, refer to estimates of unrisked, unproven resource potential, based on parameters derived from existing well data and rock sample descriptions, and general literature, and should be considered as speculative. Except for statutory liability which cannot be excluded, each of NXT Energy Solutions Inc., its officers, employees and advisers expressly disclaims any responsibility for the accuracy or completeness of the material contained in this presentation and excludes all liability whatsoever (including in negligence) for any loss or damage which may be suffered by any person as a consequence of any information in this presentation or any error or omission there from. NXT Energy Solutions Inc. accepts no responsibility to update any person regarding any inaccuracy, omission or change in information in this presentation or any other information made available to a person nor any obligation to furnish the person with any further information. Investment in NXT Energy Solutions Inc. should be considered speculative. SFD, patent pending, is a registered trademark of NXT Energy Solutions Inc.

4 NXT Energy Solutions, Inc. (NXT) A Publicly Traded, Canadian Geophysical Service Company Capitalization Share Outstanding (in Millions) Cash and Short-term Investments TSX-V: SFD OTC BB: NSFDF 52 Week High: $ Week Low: $0.85 Average Daily Volume: ~45,000 Shares 44.7 Common shares issued 8.0* Convertible Preferred shares (convert at 1:1, mature Dec 31, 2015) Stock options (average exercise price $1.08) Fully diluted number of shares 36% of Fully Diluted Shares Owned by Directors and Management Approximately $ 6 Million Debt-Free Balance Sheet 2015 YTD Contracts $ 15+ Million *Does not represent debt or debt service; can be converted prior to Dec 31, 2015 at NXT s option 4

5 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

6 A Unique Solution: Stress Field Detector, SFD Introducing the Next Generation Geophysical Survey Technology SFD SURVEY METHOD Airborne, gravity-based geophysical system Identifies areas conducive to fluid entrapment Rapidly assesses vast areas for prospectivity Non-invasive method SFD SURVEY OBJECTIVES Mitigates drilling risks by identifying trapped fluid potential Significantly lowers finding cost Identifies Prospect Leads to focus exploration projects LEADING E&P COMPANIES ARE BENEFITING USING OUR SFD METHOD Works in a variety of geologic settings (onshore/offshore) Gaining rapid acceptance worldwide 6

7 ? Why NXT CLIENTS (SHORT LIST) PROVEN TECHNOLOGY TECHNICAL PAPERS & PATENT APPLICATIONS In 2013 NXT published two joint papers with NOCs of Mexico and Pakistan Two Patents Pending CURRENT OIL MARKET SFD technology enables low cost exploration by helping companies focus their exploration programs to areas that indicate the presence of trapped fluids 7

8 Reliability of SFD Recommendations Colombia Llanos Basin 2009 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 8

9 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. 9

10 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 Survey Altitude and speed 3,000 meters and 500km/hr The SFD Sensors Three systems of multiple sensors DAQ 2,000 samples/second/sensor GPS Tracks flight lines 10

11 Where Does SFD Demonstrate Value in the Exploration Process? The Five 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 Are Present 11

12 Voltage Voltage SFD Responses from Actual Survey Example 1 : Density/Stress Anomaly with no Trapped Fluid SFD Signal 2 1 Time Example 2 : Density/Stress Anomaly with Trapped Fluid SFD Signal Change in Homogeneity 1.8 Tcf RESERVOIR Ladyfern gas field BC, Canada Time 12

13 Use SFD Grid Survey 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 13

14 GEOPHYSICAL SURVEYS Revenue generated from offering geophysical services to E&P Companies Revenue Streams STRATEGIC ROYALTY AGREEMENTS Existing GORR contracts in Canada (Pengrowth ~ BC Horn River Basin; Alberta ~ Swan Hills) SURVEY DATA SALES SFD proprietary data library Additional data added with each new surveys globally. VERTICAL MARKET EXPANSION Equity ownership in vertical business models by investing proprietary data. 14

15 US Bolivia Latin American Countries Colombia Argentina Earning Potential (US $MM) Africa Malaysia Mexico Bolivia Pakistan NXT s Opportunity Pipeline (fee for service) Over $40 Million Worth of Contracts in the Pipeline $13.4 Million survey contract awarded PHASE 1: Qualified Leads 1+ PHASE 2: Delivered Quote 1 PHASE 3: Flight Lines Planned Mari Petroleum Corporation Signed $1.5 Million Survey Contract CONTRACT AWARDED YTD x Potential Contracts 15

16 National Oil Company of Bolivia (YPFB) awards NXT US $13.4 contract Signing of US 13.4 million SFD Survey Contract announced on May 12, 2015 Opened NXT Bolivia office June 3, 2015 Survey Aircraft with SFD equipment and personnel arrived June 5, 2015 Survey aircraft arrival greeted by Presidential press conference Survey Commenced June 7,

17 Major event in Bolivia and a strategic initiative We are using this method in every state of Bolivia and it will allow us to correlate with the data we already have to make drilling decisions in the short term. Therefore, thanks to this method we can guarantee to have new reserves now of both liquids and gas in our country. President of YPFB, GUILLERMO ACHA It will be the first experience in exploration with a non-invasive airborne geophysical method which means no damage caused to the environment in order to learn exactly what we have President of Bolivia Evo Morales 17

18 What makes Vertical Concept unique? The Differentiator SFD is proven to: Mitigate drilling risk Reduce finding cost No competition Pursue large targets Unique niche Repeatable & Consistent Discover Sell Repeat Vertical Company Exclusive access to a proven differentiating technology Profitable at oil prices as low as $30/bbl Diversify risk with large portfolio of exploration leads Highly experienced management team Monetize the asset to maximize investor return 18

19 Example of Vertical identified target The Only Tool that Identifies Trapped Fluid presence at Stage 1 of Exploration Rubiales Field, Colombia Gilby Field, Canada Vertical target SFD Anomaly SFD Anomaly SFD Anomaly Reserves 4,500 MMBBL Reserves 325 MMBBL 1.83 Tcf Reserves: TBD? 19

20 VALUE ADDED SERVICE Increase Client Exploration Success Identify new hydrocarbon reserves Rapid and cost effective project execution Highly complementary to seismic Market Opportunity AN EXPANDING, PROFITABLE BUSINESS Significant profit margin Strong repeat business opportunities Non dilutive growth formula VAST MARKET OPPORTUNITY SFD market is global: onshore and offshore UNIQUE PROPRIETARY SERVICE Sole Source Patent Pending No direct competitors Quantum technologies are the Future 20

21 NXT Management and Advisors Management Non-Executive Directors Advisory Board GEORGE LISZICASZ Chairman and CEO GREG LEAVENS, C.A. 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 Former CEO of Cumberland Associates LLC, Member, 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 Credibility 21

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