NXT Energy Solutions (SFD) Planet MicroCap Showcase: TORONTO 2025 summary

Technology overview and differentiation

• Airborne survey technology detects gravitational perturbations around pressurized fluid-bearing formations, offering fast, economic, and accurate exploration for hydrocarbons and geothermal resources.

• Patented in 47 countries, the system is unique and not directly replicated by competitors, providing a significant competitive edge.

• Compared to traditional 3D seismic, the system covers 2,200 line kilometers in two months for $5 million, versus 250 kilometers in up to 2.5 years.

• Achieved a 71% commercial discovery rate in wildcat wells since 2009, far exceeding industry averages for high-risk onshore and offshore drilling.

• Technology is effective both onshore and offshore, unconstrained by terrain, and operates safely in volatile regions.

Market strategy and operational focus

• Emphasizes a go-to-market strategy based on frequency, adjacency, and repeatability, focusing on Africa, Turkey, South Asia, Southeast Asia, and the Americas.

• Success in one region facilitates client acquisition in adjacent markets, leveraging demonstrated results.

• Recent projects in Turkey and Southeast Asia have spurred increased business development activity and interest from other operators.

• Order book and backlog management have improved, with growing industry recognition and awards, including Gulf Energy Excellence in October 2024.

• Equity capitalization stands at approximately $50–60 million CAD.

Risk management and operational constraints

• Operates a single aircraft, with a current estimated revenue capacity of $40 million; future growth may involve leasing additional planes.

• Extensive permitting and risk mitigation processes are in place, especially in volatile or militarized regions, with local partners and military oversight.

• Avoids operations in high-risk countries such as China, Ukraine, Russia, and Libya due to regulatory and payment risks.

• Project timelines can be extended by permitting, as seen with the Pakistan project, but presence in-country often leads to further opportunities.

• North America is less of a focus due to extensive prior exploration; greater opportunities are seen abroad.