SFD Competitively Placed for Major Pakistan Contract

VANCOUVER, BC / ACCESSWIRE / February 19, 2015 / In today's morning news Mackie Research posted an increased buy of $1.90 for exploration tech company NXT Energy Solutions (TSX.V:SFD, NSFDF:OTCBB) as it is well-placed to get a tendered exploration contract in the south-east Asian country.

Oil & Gas Development Company Limited (OGDCL) has detailed plans to carry out aerial survey on four exploration blocks in Pakistan. Companies wishing to bid are required to do so by March 5th 2015. The contract is expected to be awarded in the first half of 2015.

NXT Energy Solutions' proprietary tech SFD specialises in aerial mapping of prospect locations, helping exploration companies fine-tune areas best placed for further exploration. Mackie points out that while seismic is considered the most accurate and valuable exploration tool, SFD makes impressive correlations with the same data produced by seismic. It's clearly a new generation, green, low-cost addition to the exploration toolbox. Using Stress Field Detection to prospect for oil and gas ranks in 10 to 30 times cheaper than traditional seismic, the report continues.

Raveel Afzaal, Industrial Technologies Analyst at Mackie Research commented to Resource Reports:

"In our opinion 2015 is set to be very active for the company with lots of contracts, such as the ones in Pakistan, Mexico and Bolivia."

The report this morning highlights SFD's experience in Pakistan as adding to the value of their bid for the new Pakistan contract. In 2012 the company completed US$2.7 million survey for Pakistan Petroleum Limited (PPL). In 2013 PPL and NXT Energy Solutions worked together on an integration study which showed a strong correlation between prospect leads that SFD identifies with those discovered by seismic. More recently, in January this year NXT Energy agreed a US$1.4 million contract with Mari Petroleum Company Limited in Pakistan.

Mackie Research says in their report today that they got the chance to review NXT's tender bid documents, and firmly believe that the company is primed to secure the contract, estimated at about US$5 million.

NXT is currently in advanced talks with oil and gas companies in Mexico and Bolivia and that the value of such contracts in these countries in addition to Pakistan could produce revenue of about $15 million for 2015 alone. Further, Pacific Rubiales (PRE:TO) has is a repeated SFD customer and other clients include BP (BP:NYSE), Ecopetrol, Petrodorado Energy, Hocol.

Mackie Research Capital previously put out a buy of $1.70 for NXT Energy and has now raised that to $1.90 per share and estimate revenues of $45 million and that achieving these large contracts will help achieve 11.5x P/E multiple.

NXT Energy Solutions (SFD.V) is currently trading at $1.68 and has a market cap of $75 million.

SOURCE: Resource Reports