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© 2016 NXT Energy Solutions, Inc.
The next generation of airborne geophysical survey technology
NXT Energy Solutions
SEPTEMBER 2016
Investor Presentation
© 2016 NXT Energy Solutions, Inc.
Disclaimer and Forward-looking Statements
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 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 or the OTC QB Exchanges accept responsibility for the adequacy
or accuracy of any information contained in this document.
© 2016 NXT Energy Solutions, Inc.
Continually more risky and expensive to find oil and gas
Discoveries are smaller and
farther afield
Low oil prices have demolished
exploration budgets
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Challenges Facing Today’s Oil and Gas Industry
Industry looks to Conventional Hydrocarbon Exploration
“In this environment, staying afloat requires a new type of inventiveness and open mindedness; an eager and proactive search for novel technologies, approaches and ways of working,” Lloyds Register Energy” +-- Oil and Gas EURASIA, May 9, 2016
© 2016 NXT Energy Solutions, Inc.
Current Capital Structure
TSX : SFD
52 Week High: $2.0
52 Week Low: $1.19
Average Daily Volume: 8,200 Shares
Capitalization Share Outstanding (in Millions)
Cash and Short-term Investments
Approximate cash on hand $5 .0 Million
Debt-Free Balance Sheet
Strong Financial Position
54.7 Common shares issued
3.1 Stock options (average exercise price $1.28)
56.7 Fully diluted number of shares
33% of Fully Diluted Shares Owned by Directors/ Management
OTC QB: NSFDF
52 Week High: US $1.79
52 Week Low: US $0.90
Average Daily Volume: 5,000 Shares
Listed on TSX since 22 March 2016 (Previously TSX Venture)
4
© 2016 NXT Energy Solutions, Inc.
SFD® Survey System on Citation 560 jet aircraft
5
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/h
The SFD® Sensors Three systems of multiple sensors
DAQ 2,000 samples/second/sensor
GPS Tracks flight lines
© 2016 NXT Energy Solutions, Inc.
PRE-SEISMIC
Rapid identification of high- potential prospect leads across many geological settings:
Use SFD® Grid Survey
POST-SEISMIC
High-Grade seismic prospects for reservoir potential
Prioritization reduces drilling risk
Ultra deep water
Salt bound
reservoir
Frontier areas
Sub-Basalt
Resource plays
Geological settings
6
Onshore/Offshore
© 2016 NXT Energy Solutions, Inc.
SOURCE MIGRATION TRAP RESERVOIR SEAL
The Five Components of a Sedimentary Basin Analysis
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
Where Does SFD® Demonstrate Value in the Exploration Process?
© 2016 NXT Energy Solutions, Inc.
SFD® Responses from Actual Survey
8
1 2
Example : Density/Stress Anomaly with Trapped Fluid
SFD® Signal
Time
Volta
ge
RESERVOIR
1.8 Tcf
2
SFD® Signal
Time
Volta
ge
Example : Density/Stress Anomaly with no Trapped Fluid 1
Change in Homogeneity
© 2016 NXT Energy Solutions, Inc.
STRATEGIC ROYALTY AGREEMENTS • Existing GORR contracts in Canada (Pengrowth ~ BC
Horn River Basin; Alberta ~ Swan Hills)
VERTICAL MARKET EXPANSION • Equity ownership in vertical business models by
investing proprietary data or through third party financing.
GEOPHYSICAL SURVEYS • Revenue generated from offering geophysical services
to E&P Companies
SURVEY DATA SALES • SFD® proprietary data library • Additional data added with each new survey globally.
Revenue Streams
9
10 © 2016 NXT Energy Solution, Inc.
SFD® Is now considered an established tool that delivers strategic value in the exploration process
• Backed by strong letters of
recommendation and references
• Globally, geoscientists have embraced SFD® as a key exploration tool
• Increased technical evidence has
resulted in higher confidence levels
• Redesigned value proposition is being well received by C-level executives and technical teams alike.
Established Technology
11 © 2016 NXT Energy Solution, Inc.
Offices/Agents Potential Projects Completed Projects
11
12 © 2016 NXT Energy Solution, Inc.
Over $100 Million Worth of Potential Contracts in the Pipeline NXT’s Pipeline of Contract Opportunities in 2016
CONTRACTS
# Potential No. of Contracts Revenue received
PHASE 3: Contract Negotiations
PHASE 2: Technical Discussions
PHASE 1: Qualified Leads
Earn
ing
Pote
ntia
l (U
S $
MM
)
0
5
10
15+
Latin
Am
eric
an
Cou
ntrie
s
5+
Arg
entin
a
2
Bol
ivia
3
3
Sri
Lank
a
2+
1
2
2+
Signed Contracts Potential contracts Additional Contract ops
Qat
ar
1
Sen
egal
3
Nig
er
1
Mal
aysi
a
Paki
stan
Gha
na
UAE
Nam
ibia
5+
1 1 Li
beria
Sey
chel
les
1
Indo
nesi
a
Kuw
ait
2
Mex
ico
2
© 2016 NXT Energy Solutions, Inc.
Trend Analysis Similar geophysical survey companies 2 Year Stock performance
OTHER US LISTED GEOPHYSICAL SURVEY COMPANIES
NXT ENERGY SOLUTIONS INC. TSX: SFD Stress Field Detection survey technology
13
© 2016 NXT Energy Solutions, Inc.
NXT Management and Advisors Management Non-Executive Directors Advisory Board
GEORGE LISZICASZ Chairman and CEO
BEV STEWART, CPA, FCCA Chief Financial Officer SAJID SAYEED, B.B.A. Dir. Global Business Development
CHARLES SELBY Caledonian Royalty Corp.
MICKEY ABOUGOUSH Formerly 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
DR. GEORGE IUSCO Formerly 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
Extensive Public Company Experience Solid Global Experience Outstanding
Scientific Credibility
RASHID TIPPU, MSC Geophysics Dir. of Geoscience, Asia, Europe, MEA
ENRIQUE HUNG, MSC Geophysics Dir. of Geoscience, LATAM
© 2016 NXT Energy Solutions, Inc.
The next generation of airborne geophysical survey technology
NXT Energy Solutions
Thank You