NXT Energy Solutions (SFD) LD Micro 20th Annual Main Event Conference summary

SFD proposition

• Airborne SFD identifies hydrocarbon accumulation anomalies in months, works with seismic, and is applicable onshore and offshore.

• SFD detects both structural and harder-to-find stratigraphic traps; combined with other G&G data, it can raise client exploration success rates to up to 81%, versus a cited historical 30%.

• Across 39 drilling recommendations over 10–15 years, 31 resulted in commercial discoveries; SFD identifies pressurized trapped-fluid bodies, while drilling determines whether they contain commercial hydrocarbons.

• The approach is positioned as rapid, lower-cost, efficient and environmentally low-impact; avoiding an unpromising drill can save clients CAD 5–10 million.

Operating and commercial progress

• In 2025, revenue reached CAD 16.4 million versus CAD 0.6 million in 2024; operating cash flow was CAD 1.2 million, and three surveys were completed versus historically one every two or three years.

• Two surveys were active at the conference: an African survey acquired in August was in interpretation, and a South Asia survey was expected to start the next day, finish in about a week, with results in December.

• The remaining work on a Pakistan survey flown in December and January was scheduled for completion in December.

• Repeat demand includes a fourth African survey for the same client; in South Asia, a second survey and work with neighboring markets were cited as evidence of regional adjacency.

Ownership and growth plans

• All SFD technology rights were acquired in December 2025, with no royalties, licensing fees or time limit; the aircraft lease was paid out by September 28, 2026.

• More than 50,000 line kilometers of Western Canada data are under review; plans are to rank anomalies, acquire hydrocarbon rights and develop prospects using low-capital methods.

• A CAD 2 million investment received almost a year earlier is funding the Western Canada opportunity, described as a next step in applying SFD to local resources.

• Survey planning typically takes three to four months, creating a timing lag between survey activity and cash flow.