NXT Energy Solutions (SFD) investor relations material

Technology and validation

• Airborne SFD surveys identify subsurface fluid traps onshore or offshore; flights at ~400 mph and ~10,000 ft enable rapid coverage. Management cited ~81% prediction strength for drilling recommendations.

• Stress-field sensing is designed to identify both structural and stratigraphic traps; three independent systems help screen false positives, with recommendations based on multiple sensor responses.

• Sampling increased from 2,000 to 8,000 samples per second; R&D is exploring AI and machine interpretation to extract more information from signals.

• A 2017 Gulf of Mexico spec survey recorded a signal on intersecting lines; Talos independently drilled the structure about two months later and found Zama, with ~670 million bbl of proven reserves cited.

• Of 37 independent drilling locations recommended over 10–12 years, 30 were commercially successful; management compared this with a ~30% global new-field wildcat success rate.

Market and commercial pipeline

• Management cited global consumption of 104 MMbpd and reserves replacement of ~25%, linking the deficit to low exploration spending and demand for fee-for-service surveys.

• Two surveys were underway in Africa and South Asia; repeat work and developing customer relationships were described as potential beginnings of larger programs.

• Rapid screening, integration with other geophysical and geological data, and repeat business from companies and governments were presented as commercial advantages.

• Management said energy-security concerns and the reserves replacement deficit are increasing interest in domestic exploration and drilling support.

2025 performance and financial position

• 2025 SFD revenue reached CAD 16.4 million versus CAD 0.64 million in FY2024; cash flow was CAD 1.2 million and free cash flow per share was CAD 0.07.

• Full ownership of the Citation aircraft and SFD technology was secured in 2025; management cited no royalties or licenses payable, virtually no debt, and ~CAD 500,000 of remaining debt after all debentures converted.

• Net working capital was just over CAD 2 million and cash plus short-term investments was CAD 1.72 million; trailing-12-month revenue was CAD 2.34 million.

• Free cash flow per share to June 30 was minus CAD 0.01, attributed to survey investment and follow-up work planned for 2027.