Thursday, 3 September 2009

Pacific Rubiales Contract Demonstrates NXT’s High Margins

NXT Energy Solutions Inc.
TSX-V : SFD / OTCBB : NSFDF / Frankfurt : EFW
Basic Shares - 30.6 million
Fully Diluted - 42.7 Million


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The airborne survey that NXT Energy just completed for Pacific Rubiales in Colombia clearly shows the significant margins associated with its SFD surveys. NXT’s Q2 results published on SEDAR on August 28th shows the 60% margin it received for its services in Colombia. What is also important to note is that figure includes the costs associated with mobilizing its entire senior management and survey teams down to Bogata, plus all associated costs with conducting its operations in Colombia (Please note: Management believes future contracts in Colombia would result in reduced expenditures).

In total the value of the Pacific Rubiales contract was $2.3 million (USD). If all revenues had been received in Q2 for this contract, NXT would have been slightly cash flow positive for the year to date.

The total net income recorded for the quarter was shown as $283,005 or $0.01/share.

Boyued by its success with the Pacific Rubiales work and news of its work filtering through the energy community there, NXT also stated in the MDA it was hoping to do even more business in South America:

“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 utilizing our services in the region.”

Click on the image below to view a photo album of operations in Colombia and the company at the Cartagena conference

NXT in Colombia


To view NXT’s Q2 financial statement click here

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