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© 2016 NXT Energy Solutions, Inc. The next generation of airborne geophysical survey technology NXT Energy Solutions SEPTEMBER 2016 Investor Presentation

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Page 1: NXT Energy Solutions · © 2016 NXT Energy Solutions, Inc. Continually more risky and expensive to find oil and gas

© 2016 NXT Energy Solutions, Inc.

The next generation of airborne geophysical survey technology

NXT Energy Solutions

SEPTEMBER 2016

Investor Presentation

Page 2: NXT Energy Solutions · © 2016 NXT Energy Solutions, Inc. Continually more risky and expensive to find oil and gas

© 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.

Page 3: NXT Energy Solutions · © 2016 NXT Energy Solutions, Inc. Continually more risky and expensive to find oil and gas

© 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

3

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

Page 4: NXT Energy Solutions · © 2016 NXT Energy Solutions, Inc. Continually more risky and expensive to find oil and gas

© 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

Page 5: NXT Energy Solutions · © 2016 NXT Energy Solutions, Inc. Continually more risky and expensive to find oil and gas

© 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

Page 6: NXT Energy Solutions · © 2016 NXT Energy Solutions, Inc. Continually more risky and expensive to find oil and gas

© 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

Page 7: NXT Energy Solutions · © 2016 NXT Energy Solutions, Inc. Continually more risky and expensive to find oil and gas

© 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?

Page 8: NXT Energy Solutions · © 2016 NXT Energy Solutions, Inc. Continually more risky and expensive to find oil and gas

© 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

Page 9: NXT Energy Solutions · © 2016 NXT Energy Solutions, Inc. Continually more risky and expensive to find oil and gas

© 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

Page 10: NXT Energy Solutions · © 2016 NXT Energy Solutions, Inc. Continually more risky and expensive to find oil and gas

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

Page 11: NXT Energy Solutions · © 2016 NXT Energy Solutions, Inc. Continually more risky and expensive to find oil and gas

11 © 2016 NXT Energy Solution, Inc.

Offices/Agents Potential Projects Completed Projects

11

Page 12: NXT Energy Solutions · © 2016 NXT Energy Solutions, Inc. Continually more risky and expensive to find oil and gas

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

Page 13: NXT Energy Solutions · © 2016 NXT Energy Solutions, Inc. Continually more risky and expensive to find oil and gas

© 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

Page 14: NXT Energy Solutions · © 2016 NXT Energy Solutions, Inc. Continually more risky and expensive to find oil and gas

© 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

Page 15: NXT Energy Solutions · © 2016 NXT Energy Solutions, Inc. Continually more risky and expensive to find oil and gas

© 2016 NXT Energy Solutions, Inc.

The next generation of airborne geophysical survey technology

NXT Energy Solutions

Thank You