August 27, 2004

NORDIC OIL AND GAS ANNOUNCES SECOND QUARTER AND SIX-MONTH FINANCIAL RESULTS

WINNIPEG, MB. (AUGUST 27, 2004) - Nordic Oil and Gas Ltd. (TSXV: NOG) today reported the results of operations for its second quarter and six-month period ended June 30, 2004. All amounts referenced herein are in Canadian dollars.

Revenue for the six months ended June 30, 2004 totaled $844,263 up significantly from the $163,171 reported for the same period in 2003. The 2004 total included $729,766 in oil and gas revenue, compared to $119,152 during the first six months of 2003. Cash and cash equivalents totaled $65,583 versus $449,345 in 2003. Total assets as at June 30, 2004 were $2,519,755 as opposed to $1,577,768 for the same period last year.

Net income for the first six months of 2004 was $28,118 compared to $9,239 for the first six months last year. However, when non-cash items such as stock option expenses, amortization and depletion are taken into account, net income for the six-month period would have been $287,110, a substantial increase over the first six months of 2003.This would represent a 34% Return on Revenue.

The solid growth in revenue and increased net income for the first half of 2004 are a reflection of the strong and active drilling program the Company has undertaken in Joffre, Alberta during the past several months.

Commenting on both the financial results and the Company's operational activities to date, Donald P. Benson, Nordic Oil and Gas's Chairman and Chief Executive Officer said: "We are pleased at the overall strength of the financial results that we have achieved thus far and I am optimistic that these results will improve even further as our oil and gas revenue increases throughout the balance of 2004."

Nordic Oil and Gas Ltd.'s current production in Joffre now exceeds one million cubic feet per day. The Company is in the process of pooling its interests in two additional sections and plans to drill those wells during the fourth quarter of 2004.

"These new wells would, in all likelihood, bring our production in the region to two million cubic feet per day, which is the exit rate we are targeting for year-end," he added.

Mr. Benson went on to say the Company also looks forward to similar success in Preeceville. "We have licensed two new wells there and we anticipate that drilling of one of these wells, and perhaps even both, will commence before the end of 2004. We also expect to conduct further seismic surveys in the region, which may yield additional locations for drilling."

The Company has completed further testing of its initial well drilled in Preeceville and although no commercial volumes of gas were present, "tests indicated that gas was detected in water samples that were taken," Mr. Benson noted. "The presence of benzene in the water suggests there may be gas in the area."

Nordic Oil and Gas Ltd. is a junior oil and gas company listed on the TSX Venture Exchange. It 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