NXT Energy Solutions Inc.
OTC Bulletin Board : NSFDF

September 21, 2009 10:52 ET

NXT Operational Update

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™ 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™ 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™ 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™ advantage. To meet a deadline our client replaced a time consuming and expensive ground-based seismic survey commitment with an SFD™ 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™ 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™ 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™.

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™ 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™ prospects with high potential.

Please see additional information about NXT and the SFD™ 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.

Contact Information

  • NXT Energy Solutions Inc.
    Ken Rogers
    VP Finance and CFO
    (403) 264-7020
    (403) 264-6442 (FAX)
    NXT Energy Solutions Inc.
    George Liszicasz
    President and COO
    (403) 264-7020
    (403) 264-6442 (FAX)
    NXT Energy Solutions Inc.
    505 - 3rd Street, S.W., Suite 1400
    Calgary, Alberta, Canada T2P 3E6
    The Howard Group
    Dave Burwell
    (403) 221-0915
    (403) 237-8387 (FAX)
    The Howard Group
    Grant Howard
    (403) 221-0915
    (403) 237-8387 (FAX)
    The Howard Group
    1200, 640 - 8th Ave. SW
    Calgary, Alberta, Canada T2P 1G7