Growth Through Successful Exploration and Drilling Strategies
April 30, 2010 NEWS RELEASE
NORDIC OIL AND GAS ANNOUNCES FINANCIAL RESULTS FOR YEAR ENDED DECEMBER 31, 2009
WINNIPEG, MB. (APRIL 30, 2010) – Nordic Oil and Gas Ltd. (TSXV: NOG), today
announced the Company's financial results from operations for its fourth quarter and year ended
December 31, 2009. All amounts referenced herein are in Canadian dollars.
12-Months Results
Revenue from oil and natural gas sales (including liquids and transport revenue) in 2009 totalled
$1,259,969 compared to $1,487,971 in 2008. Total revenue (including interest income) was
$1,269,144 as compared to $1,564,973 a year ago. The slight decrease is a direct result of the fact
that a number of the Company’s heavy oil wells in Lloydminster were down for maintenance
during the fourth quarter.
Cash, short term investments and accounts receivable for the year totalled $1,088,669
compared to $3,090,315 at the end of December, 2008. The primary reason for the drop
was the decrease in short-term investment for the year, which was much higher in 2008
due to the success of several private placement financings the Company undertook in
2008. Cash and cash equivalents at the end of the year were $162,216, as compared to
$161,172 at the end of 2008.
Total assets as at December 31, 2009 were $17,357,549, an increase of more than $3.2 million -
23% - from the 2008 total of $14,113,291. The main reasons for the increase are the large jump in
property and equipment to $16,168,787 from last year’s total of $10,857,791.
Overall expenses, including operating costs, increased by approximately $540,000 on a
comparative basis to $3,079,810 for the year ended December 31, 2009 compared to $2,538,902
for the year prior. The primary reason for the increase in total expenses was the rise in operating
costs to $1,293,414 from $707,268, and increases in G & A expenses to $1,028,860 from
$860,743, and in depletion and amortization expense to $642,291 from $529,196.
The net loss for the year was up only marginally from last year - $1,230,218 versus $995,869.
The slight increase in the 2009 loss can be attributed to the aforementioned rise in the Company’s
expenses. Net loss per share in 2009 was $0.02, the same as it was in 2008.
Fourth Quarter Results
Revenue, including interest income for the three-month period ended December 31, 2009 totalled
$256,041 compared to $602,557 during the same period a year ago and $385,882 in Q3 2009. The
decrease in quarter over quarter revenue totals was due mainly to new the fact that several of the
Company’s heavy oil wells in Lloydminster were down for maintenance.
General and administrative expenses for the three months under review totalled $785,495, up
from the $446,644 in the same period in 2008. Overall expenses for the fourth quarter under
review totalled $1,080,557 up from the $747,577 reported in Q4 2008.
For the quarter, the Company recorded a net loss of $443,759, as opposed to the $426,402 loss
reported in Q4 2008.
Production Comparisons
Average production volume for gas for the year ended December 31, 2008 was 6.33 10³m³/day or
224.38 GJ/day, compared to 10.71 10³m³/day or 352.34 GJ/day in 2008. This equates to
approximately 40 BOE/d in 2009, versus 72 BOE/d last year. The Company received $3.93/GJ as
a weighted average gas price during the year under review compared to $7.58/GJ last year.
Average production volume for gas for the three months ended December 31, 2009 was 2.84
10³m³/day or 71.19 GJ/day compared to 9.83/10³m³/day or 357.22 GJ/day during the fourth
quarter last year. This year’s total equates to approximately 28 BOE/d versus 64 BOE/day for the
same period in 2008. The Company received $3.64/GJ as a weighted average gas price during the
fourth quarter of 2008 compared to $6.33/GJ for the fourth quarter last year.
Average daily heavy oil production for the year ended December 31, 2010 was approximately 52
BOPD, with an average price received of $50.66 per barrel. For the fourth quarter of 2009,
average daily heavy oil production was approximately 53 BOPD, with an average price received
of $49.31 per barrel.
In other news, Mr. Benson also announced that pursuant to the terms and conditions of Nordic’s
Stock Option Plan, the Board of Directors has approved the granting of 1,425,000 stock options
to directors and officers of the Company, along with selected Nordic consultants and employees.
The options, which are effective immediately, are priced at $0.10 per share and will run for a
period of five years from today’s date.
The Company currently has 69,741,626 issued and outstanding Class A Common shares listed on
the TSX Venture Exchange.
About Nordic Oil and Gas Ltd.
Nordic Oil and Gas Ltd. is a junior oil and gas company engaged in the exploration and
development of oil, natural gas and Coal Bed Methane in Alberta and Saskatchewan. The
Corporation is listed on the TSX Venture Exchange and trades under the symbol NOG. Nordic
was one of the “2008 TSX Venture 50” companies, a ranking of the top 10 public venture capital
companies in five industry sectors listed on the TSX Venture Exchange.
This news release contains certain statements that may be deemed "forward-looking statements". All
statements in this release, other than statements of historical fact, that address events or developments that the Corporation expects to occur, are forward looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Corporation believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, exploration and drilling success, continued availability of capital and financing and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward looking statements are based on the beliefs, estimates and opinions of the Corporation’s management on the date the statements are made. The Corporation undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.
* The term BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1 barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined
in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy
of the contents of this News Release.For additional information, contact:
Don Bain
Corporate Secretary
Nordic Oil and Gas Ltd.
Tel. 204-943-1810
Fax. 204-943-1829
E-mail: donbain1@mts.net
