george former partner with me along with alik developed the feild stress detector of alex pezaro my other business partner alex feild stress detector used vacuum tubes and it was known for many decades the new field stress detector was or is a power cell used in reverse george myself and alik we had fun with old germanium diodes with a small meter we would read field stress with buildings , different areas would show variations in microvolts voltage, polarity changing , and energy used with a computer George lisacaze and alik explored ideas in finding earthquakes oil my company was Axiom General Systems in Canada recognized by the USA DOD SBIR PROGRAM George my self alik and Boeing's Eron Kovacks who funded us we had fun in detection od stuff we had a falling out Big court stuff we went our different ways George used the technology in detection of the Hutchison effect i gave the technology to Roland Bredow in Germany WHO confirmed the Feild Stress Detector with help of Max Plant ct Alik has his unit TO THIS DAY in short all one needs is a diode and a computer program and reference points or just a digital meter and a diode germanium type and others

1. A N E M E R G I N G G E O P H Y S I C A L S E RV I C E C O M PA N YA N E M E R G I N G G E O P H Y S I C A L S E RV I C E C O M PA N Y
Technical Presentation, September, 2011p
11

2. Disclaimer & Trademark Notice:
The SFD survey system represents an early stage reconnaissance technology, which is
ti ll d i fi t d l t h t d difi ti P ticontinually undergoing refinement, re-development, enhancement and modification. Prospective
clients users and investors are cautioned as to the various risks associated with employing earlyclients, users and investors are cautioned as to the various risks associated with employing early
stage technologies which include but are not limited to financial and business risks performancestage technologies, which include but are not limited to financial and business risks, performance
and operational risks customer risks and othersand operational risks, customer risks and others.
The SFD sensor is a quantum particle device. Quantum particle devices obey stochastic physical
laws and consequently may not consistently provide repeatable measurements in time or space.
All i t t ti f SFD d t h th id d b NXT it d i b dAll interpretations of SFD data, whether provided by NXT or its advisors or users are based on
inferences from quantum geophysical data Such interpretations while believed reasonable andinferences from quantum geophysical data. Such interpretations, while believed reasonable and
prudent at the time may be expected to change significantly as additional data and or informationprudent at the time, may be expected to change significantly as additional data and or information
become available.become available.
SFD® is a registered trademark of NXT Energy Solutions Inc.
22

3. A CanadianA Canadian PublicPublic CompanyCompanyA Canadian A Canadian Public Public CompanyCompany
www.nxtenergy.com
NXTNXTNXT NXT Energy Solutions Inc. Energy Solutions Inc. gygy
i i id t th t Oil & G I d tis a service provider to the upstream Oil & Gas Industry:
Engaged in exploration reconnaissance.g g p
We identify and rank high‐potential prospect leadsWe identify and rank high potential prospect leads
using a unique airborne survey methodusing a unique airborne survey method.
SFDSFD®®SFDSFD®® Survey SystemSurvey Systemy yy y
33

4. SFDSFD®® St Fi ld D t tSFDSFD®® : Stress Field Detector
®®SFDSFD®® : Survey position within the prospecting spectrum
Exploration Prospect Resolution ContinuumLow Highp p g
Aeromagnetics 2-D 3-D Inter-wellGravityg
& Gravity Seismic Seismic Seismic
y
Gradiometryy
Hi Res SFD®
y
Hi-Res
Aeromag
SFD®
Aeromag
Basin Level Prospect Level Well Levelp
Inferred knowledge of Trap & Reservoir detail steadily increases
44

5. STRESS in materialsSTRESS in materials
• Active stress – produces energies (ex: piezoelectricity Kaiser Effect)Active stress produces energies (ex: piezoelectricity, Kaiser Effect)
St ti t ff t ti• Static stress – affects energy propagation (photoelasticity & seismic AVO)
More colors meanLight propagation More colors mean
higher internal
g p p g
in the absence
f t
g
shear stressesof stress
55

6. SFDSFD®® Wh d SSFDSFD®® Why detect Stress . . . . .SFDSFD Why detect Stress . . . . .
In this example the porous sandstone and the shale carry the same densityIn this example, the porous sandstone and the shale carry the same density.
Equal density implies equal gravitational accelerationEqual density implies equal gravitational acceleration.
Therefore mass‐based gravimeters yield the same measurement value over bothTherefore, mass‐based gravimeters yield the same measurement value over both.
The elastic (shear) differences create stress anomalies oblivious to conventional
gravimetry, but detectible by the SFD sensor ‐ due to field rotational effects.
66

7. SS ®®SFDSFD®® responds to perturbations in the gravity field p p g y
related to changes in stress directionrelated to changes in stress direction
Gravity field is distorted by stressy y
Discontinuities affect
regional/local stress distribution
SHSH max
SH minSH min
changes in stress orientationchanges in stress orientation
entering reservoir
77

8. SFDSFD®® Stress AnomaliesSFDSFD®® Stress Anomalies . . . . .
CarbonateCarbonate
ReefReef
Consider the simple caseConsider the simple case
of a carbonate reef buriedof a carbonate reef buried
within a shale basinwithin a shale basin.
Stress VectorStress Vector
Shale BasinFluid-Filled Porosity
88

9. SFDSFD®®SFDSFD®® Stress AnomaliesSFDSFD Stress Anomalies . . . . .
“ f i ” lStress “Refraction” Anomaly
l h falong the Reef Front
Stress “Dissipation” Anomaly
within/around the Porosity
B I f SFD® i l d t id tifBy Inference – SFD® signals are used to identify
areas with reservoir and trap potential
99

10. SFDSFD®®SFDSFD®® Example SignalSFDSFD Example Signal . . . . .
SFD detectsSFD detects an excellent signal relaxation anomaly
Ladyfern Reef Gas Field (825 Bcf),
N th t B iti h C l bi C d
SFD detectsSFD detects an excellent signal relaxation anomaly
corresponding to the Ladyfern reef. This anomaly is
Northeastern British Columbia, Canada
p g y y
correctly positionedcorrectly positioned within 0.25 km0.25 km of the northern
reef edge and 1.0 km1.0 km of the southern edge.
Map Signal Coverage (22 km)Map Signal Coverage (22 km)
Signal Relaxation AnomalySignal Relaxation Anomaly
5 km
Actual Extent of Reef
5 km
1010

11. SFDSFD®® Operating PremiseSFDSFD®® Operating Premise
Gravity GravityGravity
exists as an equidimensional
Gravity
in the Earth’s Crustq
field within an isotropic & is locally distorted
homogeneous body
y
byby byby
V i ti i M D it V i ti i R k StVariations in Mass Density Variations in Rock Stress
(rock type & distribution) (fluid traps & distribution)
”Magnitude” effects Field “Shape” effectsg Field Shape effects
Traditional andTraditional and
Gradiometry
Rotational Gravimetric
Gradiometry
Surveys
Survey - SFD®
Surveys
11

12. SFDSFD®® G it & StSFDSFD®® Gravity & Stress . . . . .y
G it d St i t l t d 2nd dGravity and Stress are inter-related 2nd order [ T ]
tensors through Einstein’s field equation:
[ ]
T00 T01 T02 T03
G
T00 T01 T02 T03
[ ]
8 G
E [ T ]
π
T10 Sh1 Sxy Sxz
[ ] 4
E [ T ]
c
= T10 Sh1 Sxy Sxz
[ ]
c
T20 Syx Sh2 Syzwhere: T20 Syx Sh2 Syz
[ E ] is the Spa e Time Gra itational Tensor
Shear
T30 Szx Szy Sv
[ E ] is the Space‐Time Gravitational Tensor stressT30 Szx Szy Sv
[ T ] is the Stress‐Energy Tensor
Stress Tensor
[ T ] is the Stress Energy Tensor
Stress Tensor
1212

13. Further Technical ValidationFurther Technical Validation
NXT i h d f th ith thNXT is ahead of the curve with the
SFD® sensorSFD® sensor. JQI has “developed a novel design for a
SFD sensor. p g
highly compact, ultra-sensitive quantum
device to measure subtle changes in gravity
fQuantum detectors are now using atomic interferometry.”Quantum detectors are now
being proposed by prestigious
It may “be used to search for natural
being proposed by prestigious
researchers t ay be used to sea c o atu a
resources beneath the Earth’s
researchers.
surface.”
August 2010August 2010
Source: http://www jqi umd edu/news/242 a new design for a gravimeter html
13
Source: http://www.jqi.umd.edu/news/242‐a‐new‐design‐for‐a‐gravimeter.html
13

14. Th SFDSFD ®® l iThe SFDSFD ®® ExplorationThe SFDSFD Exploration . . . . .
1414

15. O t t tOur customers want to . . . . .
Ki kKi k S N B i E l iS N B i E l i•• KickKick‐‐Start New Basin EvaluationStart New Basin Evaluation
•• Conduct Rapid ProspectConduct Rapid Prospect‐‐Scale ReconnaissanceScale ReconnaissanceConduct Rapid ProspectConduct Rapid Prospect‐‐Scale ReconnaissanceScale Reconnaissance
•• Minimize Environmental and Community ImpactsMinimize Environmental and Community Impacts
•• Explore Areas with High Security RisksExplore Areas with High Security Risks•• Explore Areas with High Security RisksExplore Areas with High Security Risks
•• HighHigh‐‐Grade Unexplored AcreageGrade Unexplored Acreagegg p gp g
•• Evaluate Bid Round BlocksEvaluate Bid Round Blocks•• Evaluate Bid Round BlocksEvaluate Bid Round Blocks
Shorten the Exploration CycleShorten the Exploration Cycle::Shorten the Exploration CycleShorten the Exploration Cycle::
Reduce DiscoveryReduce Discovery TimeTime ‐ and ‐ Manage DiscoveryManage Discovery CostsCostsReduce Discovery Reduce Discovery TimeTime and Manage Discovery Manage Discovery CostsCosts
1515

16. Prospect-Scale ReconnaissanceProspect Scale Reconnaissance
®®®
h d thshowed themshowed them
WHERE TOWHERE TOWHERE TO
SHOOTSHOOTSHOOT
Seismic showed themSeismic showed them
h t d illwhere to drill.
1616

17. NXT’s Global ReachNXT s Global Reach
Syrian Petroleum Company
Pakistan Petroleum Limited
Encal Energy
Pakistan Petroleum Limited
Renaissance Energy
Nexstar Energy
Montana Exploration
CamWest Exploration
Infinity Oil and Gas
Rosetta Energy Pacific Rubiales
Virtus Energy Ecopetrolgy
Hocol
BP Colombia
Petro Dorado
SFD survey locationsPCR (Argentina) offices
17
yPCR (Argentina)
17

18. ®®
(Stress Field Detector)(Stress Field Detector)
• Proprietaryp y
• Citation 560 jet aircraft• Citation 560 jet aircraft
• Survey altitude: 3000mSurvey altitude: 3000m
E i t ll F i dl• Environmentally Friendly
• Identifies areas of reservoir• Identifies areas of reservoir
t ti l b th h dpotential both onshore and
offshoreoffshore
1818

19. Comparison of Geophysical MethodsComparison of Geophysical Methods
Data Coverage for $2 Million (SFD or Seismic)Data Coverage for $2 Million (SFD or Seismic)
2500
2000
1500
ters
1500
ome
1000
eKilo
1000
Line
500
0
10 000 k2D Seismic SFD
SFD
10,000 sq. km.
Survey Method SFD
SeismicSeismic
SFD delivers Focus quickly and cost effectivelySFD delivers Focus quickly and cost effectively
1919

20. SFDSFD®®SFDSFD®® Survey System LimitationsSFDSFD Survey System Limitations
SFD is not a direct hydrocarbon indicatory
Cannot determine exact drill locationCannot determine exact drill location
or differentiate reservoir fluid typesyp
or define exact depth of reservoiror define exact depth of reservoir
or distinguish the number of stacked reservoirs,or distinguish the number of stacked reservoirs,
unless they have unequal lateral extensionsunless they have unequal lateral extensions
2020

21. TestimonialsTestimonials
“[SFD]…is a technique that measures the energy associated with tectonic stress in substructures and
therefore is helping assess those areas that are very remote, very complicated to acquire seismic.
I i h h i i h h i i k l d [ h ] h l i l d i iIntegrating these techniques with the existing knowledge, [such as] the geological surveys and seismic
i f ti h l t d t d th t t l tt f th d d fi d i iti thinformation, helps us to understand the structural pattern of the area and define and prioritize the areas
where we are going to follow up with some more detailed seismic We used [SFD] and the results werewhere we are going to follow up with some more detailed seismic. We used [SFD] and the results were
very encouraging we plan to continue using this modern technique in some of those remotevery encouraging… we plan to continue using this modern technique in some of those remote
areas where seismic is very complicated and expensive to shoot. This doesn't mean we are notareas where seismic is very complicated and expensive to shoot. This doesn t mean we are not
going to shoot seismic, but it helps to plan the seismic coverage in big areas where you need tog g p p g g y
prioritize the seismic coverage”
Jose Francisco ArataJose Francisco Arata
P id t P ifi R bi l EPresident, Pacific Rubiales Energy
t f t ti t R d J i ti i C l bi f S t 13 2010except from presentation at Raymond James investing in Colombia conference, Sept 13, 2010
“The SFD® survey system allowed us to do a timely evaluation of our TEA block in the PutumayoThe SFD® survey system allowed us to do a timely evaluation of our TEA block in the Putumayo
basin We are making extensive use of the SFD® data concurrently with the rest of the informationbasin. We are making extensive use of the SFD data concurrently with the rest of the information
to select the best areas for future exploration.”to select the best areas for future exploration.
Dr. Jairo Lugo
Sr. Vice President, Exploration, Pacific Rubiales Energyp gy
2121

22. SFD®: Fast Tracks the Exploration ProcessSFD : Fast Tracks the Exploration Process
C tCostCost
E&P SuccessE&P Success
TimeTime =REDUCES
LOW FINDING
REDUCES
LOW FINDINGLOW FINDING
Ri k COSTSRisk COSTSRisk
Focus is the keyFocus is the key
2222

23. Key Contact Information:
George Liszicasz, Chairman and CEO
george@nxtenergy.com
Andy Steedman, V.P. Operations
asteedman@nxtenergy.com
NXT Energy Solutions Inc.
Azer Mustaqeem, M.Sc., P.Geoph.,
gy
Telephone (403) 264 7020Geoscientist Telephone (403) 264-7020
Fax (403) 264-6442
amustaqeem@nxtenergy.com
Fax (403) 264-6442
Website: www.nxtenergy.com
2323

24. Th SFDSFD ®® C St diThe SFDSFD ®® Case StudiesThe SFDSFD Case Studies
Click Here for SFD Case StudiesClick Here for SFD Case Studies
2424