Everybody, I am Bruce Wilcox. I'm the CEO of NXT Energy Solutions . Can we close that door, please? I'm joined today by my CFO, Eugene Woychyshyn, and our Investor Relations Director, Michael Baker. Thank you for being here. We are a hydrocarbon and geothermal exploration technology. What our product does is it can detect the gravitational perturbations that surround pressurized fluid-bearing formations and trapped fluid-bearing formations. We are fast, very, very economic, and our accuracy rate is terrific. OK, classic marketing: find a need and fill it. Operators in the industry have experienced higher costs, declining success rates, and increasing environmental concerns. What we can provide is the airborne survey. This technology was developed by us and is patented in 47 countries. Our clients are both national oil companies and independent oil companies, primarily outside of the U.S. and Canada.
Here's an example of what a $5 million expenditure on SFD® survey system technology will get you compared to what a $5 million expenditure on 3D seismic methods will get you. In our case, 2,200 line kilometers. The time to complete, from data acquisition to delivery of final integrated results to our clients, is about two months. In contrast, with traditional seismic, you'd get about 250 line kilometers. The time to complete that could be as much as two and a half years. In terms of the utility of our results, this is a summary of 35 wildcat wells that were drilled on NXT Energy Solutions Inc. recommendations since 2009. We had 25 commercial discoveries, seven dry holes. That is a phenomenal couple of statistics. That is a prediction strength of about 71% compared to, for high-risk onshore in the industry, about 18%. For offshore, deepwater offshore, about 7%.
Here's an example of the graphic data that we will present to clients. These are three pretty well known: the Rubiales field in Colombia, huge field; Gilby in Canada; and Ladyfern. On the sides, you see the background condition. That's sensing gravitational potential energy. When we cross the boundary of a fluid-bearing formation, that readout dips and remains depressed until you get to the other side. If you have a large amount of unexplored acreage, this is a very, very, very valuable and cost-effective tool to identify where you want to spend your exploration dollars. In my opinion, the highest and best use of our technology is in combination with seismic. That top band shows the SFD® survey system readout. The bottom is a seismic section.
It may be a little bit hard to see, but the yellow bands on the top section indicate where the SFD® survey system recommendation to drill would have been found. You can see that there were three successful wells. The operator had drilled wells on what they thought were promising seismic anomalies, but drilled a total of three dry holes. The combination of SFD® survey system with seismic is really a winning combination. These are a few of the companies that we've done work for. Pacific Rubiales is the operator of the Rubiales field. A lot of these are familiar: British Petroleum, the Nigeria National Petroleum Corporation, et cetera. This will be impossible to read, but these are key operational and commercial milestones since 2023. I was appointed following the passing of our founder.
We have, I think, done a pretty good job of making our order book and backlog and going to market efforts much more consistent. We also have gotten, and I hope some of you will come see us at our breakout table, which is number 53, so we can go through this kind of stuff in more detail. We also have started to gain wider industry recognition. We were awarded the best exploration technology at something called the Gulf Energy Excellence Conference in October 2024. We've been nominated two years in a row by Platts for a similar kind of recognition. I could summarize our go-to-market strategy as an emphasis on frequency, adjacency, and repeatability. These are four areas of the world where we have had concentration and a number of successes: Africa, Turkey and adjacent countries, which are prospective, South Asia, Southeast Asia, and the Americas, primarily Latin America and Mexico.
We want to—that the adjacency piece of this is really, really important because that's when we can demonstrate success. It's that much easier to win the next client. We have also been really researching the applicability of SFD® to geothermal exploration. I would say that this is a research effort. We have done one commercial survey. I think we're still learning, but this is a huge potential market if we can demonstrate effectiveness. We've got a great management team, Eugene, as I've indicated, and Mike. We have two geophysicists. We have a PhD Director of Research. This team has been together for an extended period of time. We're small and compact, but very, very effective. Here's some summary data. We have an equity capitalization of about $50 million, $60 million Canadian.
As indicated, we were recognized for the Gulf Energy Excellence and Platts, which is, I think, the oldest publication in the industry. In summary, we're fast, we're clean, we're cost-effective, we have increasing industry recognition, and this regional go-to-market strategy of frequency, adjacency, and repeatability is starting to show some results. We had a pretty strong first half. I think we've got some excellent prospects. With that, I'm going to stop talking and invite questions. Yes, sir.
You have an excellent market right now. Dry holes is very low. Is there other data sets you've been looking at that are more exposed to these markets that rely on that?
That's pretty remarkable. I mean, it's orders of magnitude higher than the traditional techniques. What we are working on is a couple of advanced applied mathematical techniques to render the interpretation process faster, more efficient, and ultimately, probably something that we can allow our clients to do the interpretation themselves. In terms of whether that results in even higher commercial success rates, I don't know. That's a large statement. Of course, we always are looking to improve the process. Yes, sir.
The success rate is really good. Is it just a matter of getting more data out there?
Partly, things like the industry, these awards like Gulf Energy Excellence. I think it's maybe something about making sure we're really consistent and really focused. Yeah, I mean, I think it's bearing fruit. That's the game plan.
Yeah, Bruce and Michael can answer that, p lease.
Bruce brought our focus and our strategy of adjacency. We've finished a project in Turkey, as an example. We've got a lot of business development activity in the Turkish region for potential projects. The same thing in Southeast Asia, which we've completed that project in the third quarter. There's a lot of activity from other operators looking with a lot of interest.
Yeah, thanks, Eugene.
Anybody else? Yes, sir.
What's the competitive landscape for you guys? What is the competitive landscape then?
There are lots of different exploration techniques. We encounter full tensor gravitational measurements, but we're very mobile. Our technology is unique. I mean, the company invented and developed it. There's nobody who does exactly what we do. I think we stack up very, very competitively with other technologies. Yes, sir.
Does this work offshore as well?
Yes. Onshore, offshore. We typically fly at about 10,000 feet, so we are not constrained by terrain. We're not subject to shoulder-launched missiles because we operate in some pretty interesting parts of the world. Our Turkish survey was down near the Syrian border. It's fast, it's safe, and not constrained by terrain. Yes.
You mentioned the Turkish project. You are operating in some more volatile areas. What % of your revenue or future revenues do those consist of? How do you do this in those environments?
This is an exploration technology. As a very broad statement, North America, like Canada and the United States, have been so heavily explored and drilled that we think there's greater opportunity abroad. I think that we de-risk it by just making sure we've learned from every project that we've done. We have extensive permitting requirements that usually involve the military as well as the energy administrative authorities. We have a single plane. It's operated by a Calgary-based air partner. That's the name of our service provider. They provide the pilots. I think that we de-risk by just experience. Keep going.
Is there any region in the world where you would not survey?
Where would we not be?
You would say not be allowed to survey?
There are parts of the world where I wouldn't want us to survey, China being one in particular. I mean, I'm sure we could get the plane in, whether we could get it out again.
Are there instances in time where there's a handful of surveyors under government regulations?
It varies. For instance, we have announced an upcoming survey in Pakistan. We did a survey quite a number of years ago in Pakistan. When India and Pakistan started shooting at each other, that put a little bit of a pause. I don't know. Eugene, you want to add to that?
I am effectively the Chief Risk Officer also. There are countries we can't go in because of this restriction or war zones, et cetera. As Bruce said, there are some places we will not go. For example, we cannot take the plane into Ukraine, Russia, Libya, those kinds of countries. There really is the other side of that. Even if you did the project in there, I don't think you'll get paid, so you're just not going to go into those areas. We make effective use of local people on the ground that help us navigate all that. As Bruce said, just making sure we don't do any false steps with permits with the military. Every time we fly, there's a military representative in those countries to make sure we stay within the appropriate areas.
We announced our Pakistan project a year ago, but it just takes a long time to get through all the permits. We're hopefully, in the next few weeks, the plane's off the ground to get that project, which is a very important project for us, and which also leads back into that whole adjacency. Once we're in country, we're hoping there's at least the start of finalizing a couple of other opportunities there. As soon as people see the plane in country, it makes it a lot easier to advance projects.
Yes, sir.
Do you have a capacity limit here?
I couldn't hear you.
Is there like a capacity limit?
With a single plane and with our current staffing, I would say that it's a guesstimate, or it's an educated estimate. I would say that our revenue capacity is probably in the $40 million range, probably caps out there. We have already done some analysis on whether it would be good for our future to acquire another aircraft. One of my hopes would be that we explore whether we can lease aircraft rather than owning. Yeah, we're a ways from that constraint. The idea is to keep growing. Mr. McWhorter.
I got your new marketing pitch. It's simple. It's CFA. It is 10-10. It's 10 times the coverage area, 10 times faster to results, typically two months, and 10 times the accuracy over water, where you end up saying, geez, we're spending a huge amount of money per well.
Right, right.
Versus the 4-10 is four times as accurate on land and 10 times where it really pops over water. There you go. CFA 10-10-4-10, simple Fisher Price.
OK.
So, simple.
Thank you.
Don't get all complicated with all this other stuff.
I should get you up here, get you behind the microphone. Thank you. Yes, sir.
Eugene, first of all, is there any difference from your perspective of the size of the surveys? Do you think it's just a little gap?
Not necessarily. I don't think we really have enough experience directly with geothermal to really make a strong statement with regards to that. The answer is I don't know yet. We don't know yet.
You've done one survey. When was that?
May of 2024.
Yeah, a year ago.
Yeah, it was in Canada or?
It was just north of Edmonton.
Yeah.
There's a geothermal hotspot there for First Nations.
The ultimate client was an offshore client. I think we're probably about at the end. Thank you all very much for being here. We're table number 53. If you want to swing by and see us, we'd be delighted.