MicroCapClub Invitational: NXT Energy (SFD.V)
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Transcript of MicroCapClub Invitational: NXT Energy (SFD.V)
CORPORATE PRESENTATION
(January 17, 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 Statementsg
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,"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 theForward-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 andstatements 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 authoritiessecurities regulatory authorities.
Neither the TSX-Venture nor the OTC Exchanges accept responsibility for the adequacyor accuracy of any information contained in this document.y y
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n tenerg comA Canadian A Canadian Public Public CompanyCompany
www.nxtenergy.com
NXT NXT Energy Energy Solutions Inc. Solutions Inc. is a service provider to the upstream Oil & Gas Industry:
Engaged in exploration reconnaissance.g g p
We identify and rank high‐potential prospect leads using a unique airborne survey method.
SFDSFD®® Survey SystemSurvey System
us g a u que a bo e su ey e od
y yy y
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SFDSFD®® “Stress Field Detection”SFDSFD Stress Field Detection
NXT’sNXT’s method will identify the best oil and gas prospects y g p p10 times faster, and at up to1/20 the cost of seismic
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SFD® (Patent Pending)
SFD® SFD® Survey in Colombia - 2009
Sabanero Block
• NXT recommendation in Dec 2009
• 3D Seismic over the block (grey area) completed by December
• Discovery July 2010 with an estimated y y180 million barrels OOIP.
• Today the entire field is developedToday the entire field is developed.
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SFDSFD®® Survey, Pacific Rubiales, Tacacho block, ColombiaTacacho block, ColombiaSFDSFD Survey, Pacific Rubiales, Tacacho block, ColombiaTacacho block, Colombia
SFD® grid program fully evaluated the 7,500 kmSFD® grid program fully evaluated the 7,500 km22 areaarea• Flown 2000 line km
• From Start to finish 7 weeks
• Pacific Rubiales relinquished non‐prospecting areas
• Petrodorado farms inPetrodorado farms in $8 million commitment
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Tacacho and Terecay 2010 Results
Drilling in Q1 2013Drilling in Q1 2013
This chart shows the explorationThis chart shows the exploration leads and resource expectations in the Tacacho and Terecayareas vs. the top SFD anomalies
Source : PRE – Exploration Asset Portfolio Report (September 2010)
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SFD®: Fast Tracks the Exploration Process
Cost
p
Cost
Time E&P Success C S
Risk=
LOW FINDING REDUCES
COSTSEnvironmentalFootprintFootprint
Focus is the key7
SFD®SFD® SystemSFD SFD System
Inferred knowledge of Trap & Reservoir detail steadily increases
Prospect LevelBasin Level Well Level
Exploration spectrum
Aeromagnetics Hi-Res 2 D 3 D DrillingGravityAeromagnetics& Gravity
Hi-ResAeromag
2-DSeismic
3-DSeismic
Drilling
SFD®
GravityGradiometry
Reconnaissance Prospect Identification Prospect Verification
The resolution of an SFD ® survey significantly surpasses other remote sensing techniques
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SFD® Data Acquisition System
The aircraft Cessna 560 Citation jet (fly at 3,000 meters, 500 km/h)
The SFD SensorsThe SFD Sensors2 systems of quantum devices
Data recording equipment(2,000 cycles / second)
Aircraft positioning systemGPS based, tracks flight lines, g
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SFDSFD®® responds to perturbations in the gravity field related to changes in stress directiong
Gravity field is distorted by stress
Discontinuities affect regional/local stress distribution
SH max
SH min
changes in stress orientationt i i
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entering reservoir
Offices/Agents2012 Ongoing Projects
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Estimated 1 26 Billi
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1.26 Billion BBL OOIP
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QUIFA BLOCK SFD BLIND TESTTested by DrillingTested by Drilling
‘Blind Test’ Results
SFD ® identifies 4 leads
AF
SFD ® identifies 4 leadsAll verified by seismicA – 100 million bbl B
X
RUBIALES OIL RUBIALES OIL
F - 100 million bblB - drills 100 ft wet sandX - un-drilled
XX
FIELDFIELD
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2012 – A Record Year - $11million
Selected list of recent contracts and near-term pipeline objectives.
Status Location US$ Value
Complete Colombia Guatemala $ 3 5 millionComplete Colombia, Guatemala $ 3.5 million
Complete Argentina $ 1.65 million
Near-termObjectives
Complete Mexico $ 5.8 million
Complete Q4-12 Belize $0.5 millionObjectives
Underway Q1-13 South Asia $ 2.66 million
Pipeline Central & Latin A i $ 5 millionPipeline America $ 5 million
Pipeline Paraguay & Bolivia $ 5 - $ 8 million
$ $
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Pipeline Colombia $ 1 - $ 5 million
Vast Market Opportunity
2010 E&P M k t
pp y
$12 BillionGlobal Geophysics
2010 E&P Market:
$447 BillionMarket 1% = $120 million
NXT Revenue Targets2012 $11.4 Million 0.09%2013 $20 Million 0.17%
NXT Revenue Targets
2014 $40 Million 0.33%
Best Previous Year - $5.3 Million
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Source: Spears Oilfield Market Report, 2010; Barclay’s Original E&P Spending Survey, 2010; NXT Market Analysis
Current and Future Revenue StreamsCurrent and Future Revenue Streams
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
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SFD®SFD® Services
Concession Level
- Reconnaissance- Reconnaissance Grid designed to identify and rank individual reservoir prospects and/or optimize seismic programs (PRE)optimize seismic programs (PRE)
- Prospect VerificationHi h G di i i ll d i dHigh-Grading seismically derived prospects based on reservoir quality onshore/offshore (PRE, BP)
Basin Level Grid designed to identify TrapGrid designed to identify Trap Potential (PEMEX)
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115 km Seismic vs. 2,500 line km SFD®
Data Coverage for $3 5 Million
2500
Data Coverage for $3.5 Million
1500
2000
omet
ers
500
1000
Line
Kilo
02D Seismic SFD
Survey Method SFD ® (5x5)Seismic
5,000 sq. km.
SFD delivers Focus quickly and cost effectively
Seismic
q y ySignificantly reduces reconnaissance seismic
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SFDSFD® Product
A recommended target map of anomalies id tifi d b SFD®identified by SFD®interpretation, rated on both reservoir and trap characteristicscharacteristics.
From this SFD® Based Prospectivity mapProspectivity map, seismic can be tailored to maximize results and minimize costminimize cost.
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SFDSFD® ® Capabilities and LimitationsCapabilities and Limitations
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 differentiate reservoir fluid types (water or oil/gas)
cannot determine exact drill location
f fcannot define depth of reservoir
cannot distinguish the number of stacked reservoirs without
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lateral offset
May 25, 2009 SFD® signal over
NA
heavy oil Rubiales field
B
age
(v)
B
Volta
Signal relaxation
Time (seconds)
Signal relaxationReservoir indicatorA B
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SFD Colombia Offshore Example : Chuchupa is a 5.5 TCF Gas Field
Chuchupa Gas FieldChuchupap
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SFD Case Example 8Canadian Plains
Natural Fractures in ShaleHorn River, British Columbia
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SFD Case Example 8Canadian Plains
Natural Fractures in ShaleHorn River, British Columbia
Directional drilling
Flight direction
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Further Technical Validation
NXT is ahead of the curve with the
SFD® sensorJQI has “developed a novel design for a highly compact, ultra-sensitive quantumdevice to measure subtle changes in gravityQ d
SFD® sensor. device to measure subtle changes in gravity using atomic interferometry.”
It may “be used to search for natural resources beneath the Earth’s
Quantum detectors are now being proposed by prestigious researchers.
surface.”
August 2010
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Source: http://www.jqi.umd.edu/news/242‐a‐new‐design‐for‐a‐gravimeter.html
Capitalizationp
TSX V: SFD OTCBB: NSFDFTSX-V: SFD, OTCBB: NSFDF
Capitalization - Shares Outstanding (millions)39.5 Common shares issued10.0* 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
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(2 million of the total are currently convertible)
Board, Management and Advisors
Management Non-Executive Geosciences
g
Management Non Executive Directors
Geosciences Advisory Board
George LiszicaszChairman & CEO
Charles SelbyCaledonian Royalty Corporation
Dr. George IuscoRepsolChairman & CEO
Greg Leavens, C.A.Chief Financial Officer
Caledonian Royalty Corporation
Mickey Abougoush Teknica Overseas Ltd.
Repsol
Dr. Cleveland JonesState Univ of Rio De Janeiro
Andy Steedman, M.B.AV-P Operations Tom Valentine
Norton Rose LLP
State Univ. of Rio De Janeiro
Dr. Arief BudimanUniv of Calgary Canada
Grafton Withers, M.B.A
V-P Marketing & SalesJohn AgeeBusiness Advisor
Univ. of Calgary, Canada
Extensive public company experience
Solid global management experience
Outstanding scientific credibility
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Highlightsg g
• Disruptive Technology for Oil & Gas Explorationp gy p
• Profitable and Commercially Proven
• Contract and Pipeline Activity is Robust
• Vast Market Opportunity• Vast Market Opportunity
THANK YOU !THANK YOU !
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