April 29, 2005 Newsrelease

April 29, 2005

NORDIC OIL AND GAS ANNOUNCES RECORD REVENUE AND STRONG CASH FLOW FOR 2004
Major New Land Acquisitions, Strong Exploration Program Set Stage For Exciting 2005

WINNIPEG, MB. (APRIL 29, 2005) Donald Benson, Chairman and Chief Executive Officer of Nordic Oil and Gas Ltd. (TSXV: NOG) announced today that the Company achieved record financial results from operations in all sectors for its year ended December 31, 2004. All amounts referenced herein are in Canadian dollars.

Revenue for the year totaled $1,775,857, up $1,295,596 or 270% from the $479,261 reported for 2003. The year's total included $1,524,304 in oil and gas revenue, compared to $383,622 during 2003. Cash and short-term investments were up substantially as well from a year ago to $934,890 as opposed to $499,973 in 2003. Net cash flow from operating activities (cash received from operators minus cash paid to suppliers and for royalties, plus interest earned) totaled $74,269 for the year, up substantially from the $14,058 reported in prior year.

Total assets as at December 31, 2004 were $3,403,501 compared to $2,605,560, which represents an increase of 30%. This included $2,135,083 in property and equipment, versus $1,906,232 for the same period last year. General and administration expenses continued to be kept low relative to industry norms, thanks to prudent management of funds. In 2004, the Company recorded G & A expenses of $99,048 an increase of less than $31,500 from prior year.

The Company recorded a net loss of $195,333 for the year. This result was due to the costs related to stock options, Asset Retirement Obligation (ARO) and higher depletion costs which were recorded as expenses on the income statement. The stock options had an estimated cost of $263,302 for the past two years. The 2003 comparative statement of operations has been restated for these accounting changes.

Commenting on the financial results Mr. Benson stated: "We are obviously pleased with the strong growth that we saw in our revenue for 2004. We exited the year with an average production of 770MCF/D from our Joffre wells thanks to our strong and active drilling program in the region, which in turn, resulted in the growth in our revenue.

"The continued growth in cash flow from operations and our overall growth in cash and cash equivalents is also an area of satisfaction for us," he added. "In addition, we would have recorded a net income for the year had it not been for the special cost related to the issuance of stock options, which now must be shown as an expense on our income statements and the adjustment that had to be made to the depletion and amortization expense."

2004 HIGHLIGHTS

The strong financial results for the year 2004 were complemented by several key initiatives and highlights, including the following:

Announced in January that the well drilled in October 2003 at Joffre had been re-completed and placed back on production. This well brought the Company's daily production to over 1 MCF/D at the time.
Drilled initial Coal Bed Methane well in Joffre, which included coring and canister testing to prove the gas content and potential amount recoverable, and ran a gas detector which indicated preliminary positive results.
Completed surveying in Sections 12 and 14 at Joffre, and plans call for a drilling program of up to three wells in 2005. When productive, these new wells could bring production in the region to two million cubic feet per day.
In Preeceville, the Company undertook further testing of its initial well in the area, and although no commercial volumes of gas were present, tests indicated that gas was detected in water samples that were taken. The presence of benzene in the water suggests there may be gas in the region.
Approximately 37 kilometers of seismic were shot in Preeceville in 2004 and results, which were announced in March 2005, will assist the Company in determining where it will drill its next well.
Near the end of the year, the Company successfully completed a private placement offering of 2,109,598 units at a price of $0.44 per Unit for aggregate gross proceeds of $928,223.

While 2004 can be considered a landmark year for Nordic Oil and Gas, 2005 is shaping up to be even more impressive. The Company has begun the year with several significant announcements, including the following:

An agreement with Trident Exploration Corp. for the pooling of each company's interests in section 20-38-24 W4 in Joffre with the intent to drill a Coal Bed Methane well this Spring.
An agreement with the Cote First Nation of Kamsack, Saskatchewan to develop oil and gas reserves on 14,355 gross acres of Cote land north of Kamsack. The Company will carry out seismic surveys in the Spring of 2005, and then drill a test well during the Summer months.
Plans for raising $5.6 million by way of a Private Placement Offering of Flow Through Common Shares and a Public Offering of Class A Common Share Units. The Offerings will include up to 11,200,000 Common Share Units ("CS Units") at $0.50 per unit and/or up to 9,333,333 Flow-Through Share Units ("FT Units") at $0.60 per Unit on a best commercial efforts basis.
The successful completion of 37 kilometres of 2-D seismic data in Preeceville that confirmed the structural trends that had previously been mapped in the southern four townships of Nordic's six-township property are seen to extend into the two most recently acquired townships. These structural trends in the southern four townships have produced over 10 possible and four drillable locations, many of them deep exploratory oil and gas targets.
An agreement with the Beaver First Nation of Alberta, for exploration and development of oil and gas resources on land owned by the Beaver First Nation near High Level in the northwestern part of the province. Nordic will be granted access to 27.5 sections (approximately 17,600 gross acres) and will undertake exploration activities on the property beginning in the Summer of 2005.

"We look at the remainder of 2005 with great enthusiasm and optimism," stated Mr. Benson. "Our goal is to continue focusing on identifying and acquiring new opportunities while capitalizing on our growing land base. We also will continue to remain dedicated to our exploration activities and when combined with the amount of prospective land that we now have at our disposal, these will be key elements in the future success and growth of our Company. Our strategic acquisitions thus far in 2005, including our two new First Nations' properties near Kamsack and High Level, will undoubtedly be major components to a successful year.

"Nordic Oil and Gas will continue focusing its activities and initiatives in its key operating areas, maintaining a high working interest at all our properties, thereby ensuring that we will competently manage all aspects of its operations. We also look forward with great anticipation toward developing our new Cote First Nation and Beaver First Nation properties," he concluded.

Nordic Oil and Gas is a junior oil and gas exploration company, which is listed on the TSX Venture Exchange and trades under the symbol NOG.

For additional information, contact:

Donald Benson
Chairman & CEO
Nordic Oil & Gas Ltd.
Tel: 204-956-5042
Fax: 204-897-7154
E-mail: dbenson57@shaw.ca

Don Bain
Director, Communications & Investor Relations
Nordic Oil & Gas Ltd.
Tel: 204-229-7751
Fax: 204-334-3764
E-mail: donbain1@mts.net