corporate presentation ( january 21, 2013 ) a proven, disruptive technology for hydrocarbon...
TRANSCRIPT
CORPORATE PRESENTATION
(January 21, 2013)
A P R O V E N , D I S R U P T I V E T E C H N O L O G Y F O RH Y D R O C A R B O N E X P L O R A T 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.
2
3
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.comA Canadian Public Company
4
NXT’s method will identify the best oil and gas prospects
10 times faster, and at up to1/20 the cost of seismic
SFD ® “Stress Field Detection”
SFD® (Patent Pending)
5
SFD® Survey in Colombia - 2009
• NXT recommendation in Dec 2009
• 3D Seismic over the block (grey area) completed by December
• Discovery July 2010 with an estimated 180 million barrels OOIP.
• Today the entire field is developed.
Sabanero Block
6
• Pacific Rubiales relinquished non- prospecting areas
• Petrodorado farms in $8 million commitment
SFD® grid program fully evaluated the 7,500 km2 area
SFD® Survey, Pacific Rubiales, Tacacho block, Colombia
• Flown 2000 line km
• From Start to finish 7 weeks
Tacacho and Terecay 2010 Results
Drilling in Q1 2013
This chart shows the exploration leads and resource expectations in the Tacacho and Terecay areas vs. the top SFD anomalies
Source : PRE – Exploration Asset Portfolio Report (September 2010)
7
8
Focus is the key
Cost
Time
Risk
E&P Success =
LOW FINDING COSTS
REDUCES
SFD®: Fast Tracks the Exploration Process
EnvironmentalFootprint
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 LevelBasin Level Well Level
Prospect Identification Prospect Verification
The resolution of an SFD ® survey significantly surpasses other remote sensing techniques
9
The aircraft
Cessna 560 Citation jet
(fly at 3,000 meters, 500 km/h)
The SFD Sensors
2 systems of quantum devices
Data recording equipment
(2,000 cycles / second)
Aircraft positioning system
GPS based, tracks flight lines
SFD® Data Acquisition System
10
11
SH min
SH max
Gravity field is distorted by stress
Discontinuities affect regional/local stress distribution
changes in stress orientationentering reservoir
SFD® responds to perturbations in the gravity field related to changes in stress direction
Offices/Agents2012 Ongoing Projects
12
NXT Surveys - Llanos Basin, Colombia (2009-2012):
NXT conducted 10 surveys for 5 clients
totalling more than 7,000 line kilometers
Wells drilled on SFD recommended Leads
11 8
CommercialWells7 0
PredictionSuccess Rate64% 100%
Estimated 1.26 Billion BBL OOIP
Correlations between discoveries and SFD Recommendations
4 Field Discoveries
Wells drilled in areas rejected by SFD
13
QUIFA BLOCK SFD BLIND TESTTested by Drilling
RUBIALES OIL FIELDRUBIALES OIL FIELD
‘Blind Test’ Results
SFD ® identifies 4 leads
All verified by seismic
A – 100 million bbl
F - 100 million bbl
B - drills 100 ft wet sand
X - un-drilled
X
AF
B
X
14
15
2012 – A Record Year - $11million
Selected list of recent contracts and near-term pipeline objectives.
Near-termObjectives
Status Location US$ Value
Complete Colombia, Guatemala $ 3.5 million
Complete Argentina $ 1.65 million
Complete Mexico $ 5.8 million
Complete Q4-12 Belize $0.5 million
Underway Q1-13 South Asia $ 2.66 million
Pipeline Central & Latin America $ 5 million
Pipeline Paraguay & Bolivia $ 5 - $ 8 million
Pipeline Colombia $ 1 - $ 5 million
16
Source: Spears Oilfield Market Report, 2010; Barclay’s Original E&P Spending Survey, 2010; NXT Market Analysis
$12 BillionGlobal Geophysics
Market
2010 E&P Market:
$447 Billion1% = $120 million
Vast Market Opportunity
2012 $11.4 Million 0.09%
2013 $20 Million 0.17%
2014 $40 Million 0.33%
NXT Revenue Targets
Best Previous Year - $5.3 Million
1. Service Fees
2. Data SalesIn Colombia alone, over 40,000 km of proprietary data have been acquired.Additional data added with each new survey
3. RoyaltyExisting GORR contracts in Canada (Pengrowth ~ BC Horn River Basin; Alberta ~ Swan Hills)
4. Vertical ExpansionEquity ownership, long term contracts
Current and Future Revenue Streams
17
18
SFD® Services
Concession Level
- Reconnaissance Grid designed to identify and rank
individual reservoir prospects and/or optimize seismic programs (PRE)
- Prospect VerificationHigh-Grading seismically derived prospects based on reservoir quality onshore/offshore (PRE, BP)
Basin Level Grid designed to identify Trap Potential (PEMEX)
18
2D Seismic SFD0
500
1000
1500
2000
2500
Survey Method
Line
Kilo
met
ers
SFD delivers Focus quickly and cost effectivelySignificantly reduces reconnaissance seismic
Data Coverage for $3.5 Million
SFD ® (5x5)Seismic
5,000 sq. km.
115 km Seismic vs. 2,500 line km SFD®
19
SFD® Product
A recommended target map of anomalies identified by SFD® interpretation, rated on both reservoir and trap characteristics.
From this SFD® Based Prospectivity map, seismic can be tailored to maximize results and minimize cost.
20
21
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
Time (seconds)
May 25, 2009 SFD® signal over heavy oil Rubiales field
Signal relaxationReservoir indicator
Vo
ltag
e (
v)N
Tim
e (seconds)
A
B
A B
22
23
Chuchupa Gas FieldChuchupa
3600
3700SFD Colombia Offshore Example : Chuchupa is a 5.5 TCF Gas Field
24
SFD Case Example 8
Canadian PlainsNatural Fractures in Shale
Horn River, British Columbia
25
SFD Case Example 8
Canadian PlainsNatural Fractures in Shale
Horn River, British Columbia
Directional drilling
Flight direction
26
JQI has “developed a novel design for a highly compact, ultra-sensitive quantumdevice to measure subtle changes in gravity using atomic interferometry.”
It may “be used to search for natural resources beneath the Earth’s surface.”
Quantum detectors are now being proposed by prestigious researchers.
August 2010
NXT is ahead of the curve with the
SFD® sensor.
Further Technical Validation
Source: http://www.jqi.umd.edu/news/242‐a‐new‐design‐for‐a‐gravimeter.html
27
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: $0.59 - $1.17
Debt-Free Balance Sheet ~ $5.0 million cash
• Does not represent debt or debt service…converts 1:1 to common on achievement of milestones
(2 million of the total are currently convertible)
28
Management Non-Executive Directors
Geosciences Advisory Board
George LiszicaszChairman & CEO
Greg Leavens, C.A.
Chief Financial Officer
Andy Steedman, M.B.A
V-P Operations
Grafton Withers, M.B.A
V-P Marketing & Sales
Charles SelbyCaledonian Royalty Corporation
Mickey Abougoush Teknica Overseas Ltd.
Tom ValentineNorton Rose LLP
John AgeeBusiness Advisor
Dr. George IuscoRepsol
Dr. Cleveland JonesState Univ. of Rio De Janeiro
Dr. Arief BudimanUniv. of Calgary, Canada
Extensive public company experience
Solid global management experience
Outstanding scientific credibility
Board, Management and Advisors
Highlights
29
• Disruptive Technology for Oil & Gas Exploration
• Profitable and Commercially Proven
• Contract and Pipeline Activity is Robust
• Vast Market Opportunity
THANK YOU !