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CALGARY,
ALBERTA--(Marketwire - Sept. 21, 2009) - NXT Energy Solutions Inc. (TSX
VENTURE:SFD) (OTCBB:NSFDF) (FRANKFURT:EFW) ("NXT",
"we" or "the Company") is pleased to provide an
operational update.
Financial Highlights ($Cdn.) Key Financial Indicators 3 months ended June 30, 6 months ended June 30, 2009 2008 2009 2008 Total revenue $ 2,638,759 $ 1,749,076 $ 2,638,987 $ 1,755,659 Net income (loss) 283,005 806,619 (764,076) 94,742 Financial Position at June 30, December 31, end of the period 2009 2008 Cash & Short Term Investments $ 4,741,090 $ 6,894,170 Accounts Receivable 2,462,094 20,569 Total Assets 7,947,274 7,600,609 Total Liabilities 1,522,669 700,651 Shareholders Equity 6,424,605 6,899,958
This financial summary should be read in
conjunction with the Company's second quarter 2009 interim financial
statements as filed on our website www.nxtenergy.com on
August 29, 2009.
Our balance sheet remains strong with cash reserves and no debt.
During the second quarter of 2009 NXT transitioned into the
international arena with the completion of a US $2.3 million SFD(TM)
survey contract in Colombia. We are encouraged by our early stage
international success.
The costs to complete this first Colombian contract were greater than
costs previously experienced in Canada. Some extra expenses are
structural, requiring a permanent increase in management,
geoscientists, sales, marketing and other personnel plus the cost for
local representation. Other expenses are more start-up in nature, such
as costs incurred to gain market intelligence, establish a market presence
and learn how to operate in a foreign country. Notwithstanding these
extra costs we are pleased to report a profit in the quarter.
We are confident that these new expenditures are strategically
important and will serve to open-up a large market opportunity for our
SFD(TM) survey services not only in Colombia but also to stimulate
future opportunities in Latin America and throughout the world. As we
implement this business plan we project our operating costs will
decline as a percentage of revenue and overall company profitability
will grow.
Colombian & Latin America Strategy
Colombia was selected very deliberately as a preliminary strategic
focus for NXT following our evaluation of a number of different
potential international regions. Colombia's appeal was due to several
factors including: significant anticipated oil and gas potential, good
government policies, a fair taxing structure, greatly improved national
security and good political stability that have stimulated a
significant growth in exploration activity in the country.
The completion of this first international contract is significant in
two ways. First, it illustrates the adaptability of our business to
quickly move into new market locations. Within months of a market
crisis in 2008 we implemented a new international market plan that has
now generated revenue. Secondly, market intelligence gained while in
Colombia has confirmed the significant market opportunity for SFD(TM)
services not only in Colombia but also throughout Latin America.
SFD Technology - Colombian Advantage
The recent Colombian survey provides a strong case study to illustrate
the SFD(TM) advantage. To meet a deadline our client replaced a time
consuming and expensive ground-based seismic survey commitment with an
SFD(TM) survey. Their survey area was challenging due to its
remoteness, mountain and jungle terrain, extreme weather conditions as
well as security and community concerns. The unique ability of NXT to
conduct SFD(TM) surveys at high altitudes (up to 3km, or 10,000 ft)
overcame these difficulties allowing completion of the survey and the
delivery of the final report in just 7 weeks. We not only met the
client's deadline but also provided them with critical data to evaluate
their block. This survey has provided NXT with an important client
reference within the Colombian marketplace.
The SFD(TM) advantage and growing reputation of our company within
Colombia was evident at a geological and geophysical technical
symposium in Cartagena, Colombia attended by NXT in late July 2009.
Over 25 regional exploration companies expressed interests in SFD(TM).
Colombia Business Development
To fast track our sales efforts we have engaged Edgar Baquero, a M.Sc.
geologist as our Latin America business development manager. Mr. Baquero
is a respected Bogota based professional with 25 years of exploration
experience in Latin America. He has served in Latin America as manager
for Ecopetrol, vice president-Latin America for Wavefield-Inseis and
multi-client seismic sales representative for CGGVeritas. Mr. Baquero
shall provide NXT with a permanent representative office in Colombia
and provide strong local representation to pursue the numerous business
opportunities identified both within Colombia and through-out Latin
America.
Sale Activities and Opportunities in Colombia
NXT continues to ramp-up our sales and marketing resources and
activities in the region. Numerous sales meetings with prospective
clients have either been completed or are scheduled in the near future.
The actual survey potential for NXT within Colombia and the timing of
future revenue is still too early to determine, however, we are
encouraged by the size of the Colombian opportunity for NXT, the
quality of the prospective clients we are meeting with and their level
of interest in our services.
Upcoming Conferences being attended by NXT
Bogota, Colombia (September 24), - NXT will be presenting to the
Association of Colombian Petroleum Geologists and Geophysicists at
their monthly meeting.
New York, NY (September 30) - NXT will be presenting at the RedChip
Equities Conference in New York. The Company's presentations will be
webcast live and archived for 90 days at http://www.RedChip.com.
In addition, NXT will be in attendance at the following conferences
where we are scheduled to meet with technical representatives of
prospective Latin America clients:
Houston (October 25-30) - Society of Exploration Geophysicists (SEG)
Annual Meeting
Houston (October 29-30) - Latin America Conference
Rio de Janeiro, Brazil (November 15 to 18) - International Association
of Petroleum Geologists
NXT is in the business of providing wide-area airborne exploration
services to the oil and gas industry. The Company utilizes its
proprietary SFD(TM) Survey System to offer its clients a unique service
to rapidly identify sub-surface structures with charged reservoir
potential in sedimentary basins with no environmental impact. The value
of the service is providing clients with an efficient, cost effective
method of surveying large tracts of land and delivering an inventory of
SFD(TM) prospects with high potential.
Please see additional
information about NXT and the SFD(TM) technology on the Company's
website.
Forward-Looking Statements
This news release 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, the
volatility of oil and gas prices, the ability to implement corporate
strategies, the state of capital markets, the ability to obtain
financing, changes in the oil and gas industry, operating risks,
reserve estimates, 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-Venture nor NASDAQ OTCBB Exchanges accept
responsibility for the adequacy or accuracy of this news release.
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