NXT Energy Solutions Inc.

Published : December 04th, 2014

Plunging Oil Means Exploration Budget Cuts

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Plunging Oil Means Exploration Budget Cuts

Majors Will Be Forced to Find Oil More Cost Effectively - SFD(R) At The Forefront

VANCOUVER, BC / ACCESSWIRE / December 4, 2014 / Soaring exploration costs and free falling oil prices are triggering oil majors to find cheaper ways of finding new reserves, including utilizing technologies like NXT Energy Solutions' (TSXV:SFD, and NSFDF:OTCBB) SFD(R). It's an aerial survey technology that can very quickly identify the best oil and gas prospects at a fraction of the cost of existing methods while significantly increasing the commercial success rate on exploration programs.

SFD(R) is a geophysical tool that detects anomalies in the sub-surface which explorationists can use to identify high-potential fluid traps, like oil and gas. It's a proprietary technology that has already impressed the likes of national oil companies in Mexico, Pakistan, and Colombia. Besides hitting the mark as a highly cost-efficient prospecting method, it's also environmentally friendly, as it has virtually no impact.

Top-Tier Clients: PEMEX, Pakistan Petroleum, EcoPetrol, Pacific Rubiales

Oil Exploration isn't a cheap business. Three oil giants Chevron Corp., Exxon Mobil Corp. and Royal Dutch Shell PLC spent US$120 billion in 2013 on exploration costs. Brent crude oil has continued its Autumn free-fall, now below US$ 72 after OPEC decided not to cut production. These figures don't mix well - soaring exploration costs and the oil price in a free fall. It's no wonder that the major oil companies are searching for more cost effective technologies to find new sources of oil and gas with.

One of those companies was Mexican oil giant PEMEX (Petroleos Mexicanos). PEMEX, Mexico's state oil company took on NXT Energy Solutions' Stress Field Detection under a 'blind test' in 2012 (read here). The US$ 415 billion oil company tested SFD(R) over 5 basins onshore/offshore and on a variety of geological settings known to have trapped fluid reserves. The technology successfully identified the vast majority of the 64 known reserve accumulations in the survey test - containing 3P reserves of 11,918.7 MMBoe (million Barrels of Oil Equivalents) out of 12,047.9. To put that in perspective it identified 98.9% of the $843 trillion worth of reserves in a $5.8 million contract. In addition, the test proved that SFD(R) had high correlations in identifying existing prospects that had been identified by seismic methods.

This illustrates SFD(R)'s capabilities as a valuable compliment to other technologies, particularly seismic, in order to locate or verify fluid traps. Not to mention the endorsement comes from a US$415 billion heavyweight.

PEMEX is not the only national oil company (NOC) to take an interest in SFD(R). NXT's Stress Field Detection technology has won glowing remarks from the Pakistan government, whose state-owned oil company Pakistan Petroleum Limited (PPL) was thrilled by the results of its initial use the technology, also in late 2012.

NXT Energy flew an aerial survey in the Balochistan basin in Pakistan, a frontier area with no previous seismic or other geophysical data coverage. As part of its exploration program, PPL also acquired extensive 2D seismic data over a large portion of the lands which were part of the SFD(R) survey. In mid-2013 PPL used this data to further investigate the area for the highest potential prospects, later publishing the results in late 2013 as a Joint Technical Paper at the Pakistan Annual Technical Conference in Islamabad.

"SFD(R) technology has been successfully applied by leading oil and gas companies in North America, Colombia and other countries. PPL is proud to be the first company to apply the technology in Pakistan."

PPL's Managing Director and Chief Executive Officer Asim Murtaza Khan

Other past survey clients include Pengrowth Energy (PGF:TSX), Renaissance Energy Ltd., Encal Energy Ltd., Pacific Rubiales Energy (PRE:TO) and British Petroleum (BP) (BP:NYSE) on a test in Colombia. The potential market for SFD(R) is global, and NXT is actively working to expand into new markets, and gain large new NOC clients such as those in Bolivia and south-asia.

In yesterday's conference call NXT CEO George Liszicasz mentioned that Boliva's NOC YPFB is interested in employing SFD(R) for extensive surveys in 2015.

SFD(R): The Right Tech at the Right Time

The notorious and soaring costs of exploration continue to weigh down on the oil majors and the fall of oil prices off a cliff with no near-term recovery likely demands solutions that can minimise the exploration risk.

2D and 3D seismic is an important feature of exploration but is hardly cheap in the range of $30,000 - $90,000 per kilometre, especially in frontier areas where the big oil discoveries are found. Also, while seismic can identify sub-surface structures, additional methods are needed to gain information on fluid properties. SFD(R) has many advantages, starting with flexibility; it can be used before seismic is implemented or after other methods have been used to add confirmation and accuracy.

SFD(R) can be used both on-shore and off-shore, it isn't affected by water depth or salt presence and has virtually no environmental impact. Plus, it doesn't involve a lengthy on-ground permitting process as seismic does.

Having already proven its capabilities to oil majors like PEMEX and PPL and having worked with BP for exploration studies, SFD(R) is clearly one solution to the cheap oil/need more discoveries conundrum.

NXT Energy has a relatively small share float, and a market cap of about $70 million.

SOURCE: Resource Reports

Read the rest of the article at finance.yahoo.com
Data and Statistics for these countries : Bolivia | Colombia | Mexico | Pakistan | All
Gold and Silver Prices for these countries : Bolivia | Colombia | Mexico | Pakistan | All

NXT Energy Solutions Inc.

CODE : SFD.V
ISIN : CA62948Q1072
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NXT Energy is a exploration company based in Canada.

NXT Energy is listed in Canada, in Germany and in United States of America. Its market capitalisation is CA$ 80.0 millions as of today (US$ 61.0 millions, € 54.2 millions).

Its stock quote reached its highest recent level on January 04, 2008 at CA$ 4.90, and its lowest recent point on April 21, 2011 at CA$ 0.29.

NXT Energy has 53 310 000 shares outstanding.

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Financings of NXT Energy Solutions Inc.
6/17/2009 Completes Small Private Placement
Option Grants of NXT Energy Solutions Inc.
2/28/2011Grants150,000 Options to Insider and reprices 1,615,000
Nominations of NXT Energy Solutions Inc.
8/26/2013Announces Filing of Q2-2013 Results and the Appointment of M...
1/29/2013Mr. Krishna Vathyam Joins the NXT Board of Directors
4/27/2011Announces New Appointment to Geosciences Advisory Board
1/16/2009 Appoints Chief Operating Officer
Financials of NXT Energy Solutions Inc.
4/24/2013Announces Strong 2012 Year-End Results
Corporate news of NXT Energy Solutions Inc.
12/16/2015NXT Energy Solutions Advises of Grant of Stock Options
11/3/2015NXT Energy Provides Update on Bolivia Survey Project and Oth...
9/1/2015NXT Energy Solutions Finalizes Rights to SFD Technology via ...
8/27/2015NXT Energy Solutions Announces Filing of Q2-2015 Interim Res...
8/25/2015Edited Transcript of SFD earnings conference call or present...
8/5/2015NXT Energy Solutions Engages Venture North for Investor Rela...
7/9/2015NXT Energy Solutions Announces US $1 Million Expansion of SF...
4/16/2015IIROC Trading Resumption - SFD
4/16/2015NXT Receives Award of a New SFD® Contract of US $13 Million
4/15/2015IIROC Trading Halt - SFD
2/19/2015Mackie Research Increases Target for NXT Energy Solutions
1/13/2015Honorable George Allen Joins NXT Energy Solutions Advisory B...
1/8/20154 charged under Utah's controversial 'ag-gag' law
1/5/2015NXT Awarded New Survey Project in Pakistan
12/4/2014Plunging Oil Means Exploration Budget Cuts
12/3/2014NXT Energy Solutions Inc.: Reminder-Conference Call December...
11/25/2014NXT Reports Filing of Q3 Results and Related Conference Call
9/5/20143 Technologies Beating the ‘Peak Oil’ Hysterics
8/27/2014NXT Energy Solutions Reports Filing of Q2 Results and Relate...
7/17/2014NXT Energy Solutions Announces Revised Date for Conference C...
7/10/2014NXT Energy Solutions Announces Re-Election of Directors and ...
5/23/2014Disruptive Oil Services Company, NXT Energy Bolsters Outlook...
5/22/2014NXT Energy Solutions Reports Earnings of $2.6 Million in Q1 ...
4/29/2014NXT Energy Solutions Announces Filing of 2013 Year-End Resul...
4/14/2014Chinese pork giant plans IPO to raise up to $5.3B
9/26/2013Provides Update on Recent Business Development Initiatives
7/25/2013Announces Completion and Presentation of Joint Paper Co-Auth...
7/8/2013Announces Granting of Incentive Stock Options
7/2/2013Announces the Completion of PEMEX Integration Study and Auth...
5/28/2013Announces SEDAR Filing of Q1-2013 Results and Conversion of ...
4/2/2013Management Team Enhanced With The Hiring of Mr. Atul Nautiya...
3/14/2013Nearing Completion of South Asia Survey Project
2/15/2013to Present at the EnerCom Oil & Services Conference 11
2/8/2013Secures US $4.73 Million SFD(R) Survey Contract With Petrole...
1/22/2013Presents at MicroCapClub Invitational
1/10/2013Announces Record Revenue Year in 2012, and Provides Update o...
11/5/2012Announces Update On Status of US $5.8 Million Survey Contrac...
10/4/2012Announces US $1.04 Million Expansion of Survey Contract for ...
9/20/2012Finalizes US $4.73 Million PEMEX Contract, Initiates New Sur...
9/12/2012Secures US $4.73 Million SFD(R) Survey Contract With Petrole...
7/11/2011Announces Management Change and Appointment of Leading I...
6/30/2011Signs Letter of Intent for SFD® Surveys in Six Blocks and in...
4/4/2011Announces a $150,000 Pilot Survey Contract, April Oil & Gas ...
2/17/2011Announces Closing of Financing
2/11/2011Announces Financing
12/22/2009Grants Common Share Options in 2009
10/26/2009Announces the Execution of SFDTM Survey Contract With a New ...
9/21/2009 Operational Update
7/23/2009Attending At Exploration Symposium In Colombia
7/15/2009 Completes US $2.3 Million Survey for Pacific Rubiales
5/13/2009Execution of SFD Survey Contract and Commencemnt of Colombia...
9/22/2008Changes Its Name to NXT Energy Solutions Inc.
7/16/2008Annual General Meeting and Contract Update
5/1/2008 Provides an Update on SFD Survey Contracts
4/16/2008Announces Update on Drilling Activity on SFD Prospect
4/10/2008Reports 2007 Financial and Operational Results
3/10/2008Corporate Update
2/15/2008Announces Commencement of Cdn. $1.5 Million SFD Survey and C...
12/10/2007 Announces New Board Members
12/3/2007Lists on the TSX Venture Exchange
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