NXT Announces Royalty Agreement

About this update from Nxt Energy Solutions Inc.

[{"type":"text","content":"\n\n\n\n\n\nCALGARY, Aug. 10, 2011 /CNW/ - NXT Energy Solutions Inc. (\"NXT\" or \"the\n Company\") (TSX-V:SFD; NASDAQ-OTCBB:NSFDF), today announced the\n execution of a gross overriding royalty agreement (\"GORR\") as part of\n the consideration earned by NXT on a 10,000 km2 aerial based survey that was conducted in 2008 using NXT's proprietary\n SFD® survey system.  NXT's GORR averages 1.5% on future production that\n may be developed on a sizeable prospect in the Horn River Basin of\n north-east British Columbia, an area which has become one of North\n America's largest new shale gas resource plays. \n\n\n\"This agreement demonstrates growing industry acceptance of our\n technology, which helps our clients focus their land acquisition\n strategies and exploration budgets, and make oil and gas discoveries,\"\n said George Liszicasz, NXT's President and CEO.  \"The ability to\n include success-based royalties in our traditional fee-for-service\n model gives NXT the flexibility to diversify and expand our revenue\n stream, and as our technology gains wider industry acceptance, we plan\n to further leverage the use of such royalties, which can be\n significant.\"\n\n\nThe SFD® survey enabled NXT's client, a mid-sized Canadian exploration\n and production company, to high-grade its participation in the Horn\n River Basin, by acquiring lands that displayed SFD® anomalies.  Such\n SFD® anomalies have a high level of correlation with seismic based\n anomalies, and enable NXT clients to acquire competitive information\n rapidly at a relatively low cost.\n\n\nThe client has disclosed in various public forums (investor\n presentations, and on its website) a preliminary internal estimate of\n up to 9.5 tcf (trillion cubic feet of natural gas) of \"Discovered\n petroleum initially-in-place\" on its 110 section Horn River play (of\n which 21.75 net sections, or approximately 20% of the lands, are\n subject to NXT's GORR).  NXT was not involved in the preparation of the\n presentations or the resource estimates contained therein.\n\n\nThe value of the GORR will ultimately be dependent upon various factors\n (including future natural gas prices, and access to drilling and\n completion services, and pipeline infrastructure) that will affect the\n timing and extent of development...

More updates from Nxt Energy Solutions Inc.