NXT Announces Royalty Agreement
10 August 2011 - 10:00PM
PR Newswire (Canada)
CALGARY, Aug. 10, 2011 /CNW/ -- CALGARY, Aug. 10, 2011 /CNW/ - NXT
Energy Solutions Inc. ("NXT" or "the Company") (TSX-V:SFD;
NASDAQ-OTCBB:NSFDF), today announced the execution of a gross
overriding royalty agreement ("GORR") as part of the consideration
earned by NXT on a 10,000 km(2 )aerial based survey that was
conducted in 2008 using NXT's proprietary SFD® survey system.
NXT's GORR averages 1.5% on future production that may be
developed on a sizeable prospect in the Horn River Basin of
north-east British Columbia, an area which has become one of
North America's largest new shale gas resource plays.
"This agreement demonstrates growing industry acceptance of our
technology, which helps our clients focus their land acquisition
strategies and exploration budgets, and make oil and gas
discoveries," said George Liszicasz, NXT's President and CEO.
"The ability to include success-based royalties in our
traditional fee-for-service model gives NXT the flexibility to
diversify and expand our revenue stream, and as our technology
gains wider industry acceptance, we plan to further leverage the
use of such royalties, which can be significant." The SFD® survey
enabled NXT's client, a mid-sized Canadian exploration and
production company, to high-grade its participation in the Horn
River Basin, by acquiring lands that displayed SFD®
anomalies. Such SFD® anomalies have a high level of
correlation with seismic based anomalies, and enable NXT clients to
acquire competitive information rapidly at a relatively low cost.
The client has disclosed in various public forums (investor
presentations, and on its website) a preliminary internal estimate
of up to 9.5 tcf (trillion cubic feet of natural gas) of
"Discovered petroleum initially-in-place" on its 110 section Horn
River play (of which 21.75 net sections, or approximately 20% of
the lands, are subject to NXT's GORR). NXT was not
involved in the preparation of the presentations or the resource
estimates contained therein. The value of the GORR will ultimately
be dependent upon various factors (including future natural gas
prices, and access to drilling and completion services, and
pipeline infrastructure) that will affect the timing and extent of
development of the Horn River Basin. NXT is a Calgary based
company providing a unique airborne detection technology that
enables our clients to focus their hydrocarbon exploration
decisions concerning land commitments, seismic data acquisition
expenditures and prospect prioritization onto the areas with the
greatest potential. NXT's proprietary airborne Stress Field
Detection ("SFD®") survey system provides a unique method that
remotely identifies potential traps and reservoirs. SFD® is
environmentally friendly and unaffected by ground security issues
or difficult terrain and is effective both onshore and offshore.
NXT provides its clients an efficient and reliable method to reduce
time, costs, and risks in conducting frontier exploration surveys.
SFD® is the registered trademark of NXT Energy Solutions Inc.
Forward-Looking Statements This news release includes
forward-looking statements. When used in this document, words
such as "may", "anticipate", "development", "could" and "potential"
are 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 factors can cause actual results to differ materially from those
in the forward-looking statements. There is a specific risk that
the GORR could produce no revenue for NXT if the lands which are
subject to the GORR are never explored or developed or if
hydrocarbons are not found or produced in economic quantities. NXT
is not in the oil and gas exploration and development business and
as such has not reviewed or engaged an independent professional to
review the client's resource estimate, which may prove to be
inaccurate. Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) nor NASDAQ OTCBB Exchanges accept
responsibility for the adequacy or accuracy of this release.
To view this news release in HTML formatting, please use the
following URL:
http://www.newswire.ca/en/releases/archive/August2011/10/c2784.html
table cellspacing="0" border="1" class="cnwBorderedTable" tr
valign="top" td align="left" George Liszicasz CEO and President /td
td align="left" valign="top" Jeremy Dietz /td /tr tr valign="top"
td align="left" NXT Energy Solutions Inc. /td td align="left"
valign="top" The Equicom Group /td /tr tr valign="top" td
align="left" 505 - 3rd Street, S.W., Suite 1400 /td td align="left"
valign="top" 300 - 5th Avenue SW, 10th Floor /td /tr tr
valign="top" td align="left" Calgary, Alberta, Canada T2P 3E6 /td
td align="left" valign="top" Calgary, AB, Canada T2P 3C4 /td
/tr tr valign="top" td align="left" Tel: (403) 264-7020 /td td
align="left" valign="top" Tel: (403)218-2833 /td /tr tr
valign="top" td align="left" Fax: (403) 264-6442 /td td
align="left" valign="top" a
href="mailto:jdietz@equicomgroup.com"jdietz@equicomgroup.com/a /td
/tr tr valign="top" td align="left" a
href="mailto:nxt_info@nxtenergy.com"nxt_info@nxtenergy.com/a /td td
align="left" valign="top" /td /tr tr valign="top" td
align="left" a href="http://www.nxtenergy.com"www.nxtenergy.com/a
/td td align="left" /td /tr /table
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