August 28, 2003

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

WINNIPEG, MB. (AUGUST 28, 2003) ­ Nordic Oil and Gas Ltd. (TSXV: NOG) today reported the results of operations for the second quarter and six-month period ended June 30, 2003. All amounts referenced herein are in Canadian dollars.

Revenue for the six months ended June 30, 2003 totaled $163,172, up significantly from the $952 reported for the same period in 2002. This year's total included $119,152 in oil and gas revenue, compared to no revenue during the same period a year ago. Net income for the first half of 2003 was $9,239, compared to a net loss of $26,524 for the first six months last year. Cash and cash equivalents were also up substantially from a year ago at $449,345 versus $92,642 in 2002. Total assets as at June 30, 2003 were $1.6 million as opposed to $105,716 for the same period last year.

The strong financial results for the first six months of 2003 are attributed mainly to the fact that the Company commenced drilling its first well in Joffre, Alberta during the second quarter of the year. Other highlights during the second quarter included:

• In April, the Company acquired an 80% interest in a Special Exploration Permit for the Petroleum and natural Gas rights covering nearly 65,000 acres in the Preeceville area of east central Saskatchewan;
• In May, the Company signed an agreement to undertake the shooting of a further 16 kilometres of seismic, also in the Preeceville area;
• A new member of the Board of Directors was appointed during the second quarter. Brahm Silverstone, a Calgary-based geophysicist with some 30 years' experience in the oil and gas industry, joined the Board in late May.

Subsequent to the end of the quarter, the Company also announced that it had completed testing of its first natural gas well in Joffre and that the well flow tested at 600 MCFD. In addition, the Company announced that it had completed its seismic survey in Preeceville (these results are currently being analyzed and that it planned to drill an exploration well on these lands.

Commenting on the first half financial results, Donald Benson, Nordic Oil and Gas's Chairman and Chief Executive Officer said: "We are pleased with the results to date and feel that we are well positioned for a strong second half of the year.

"We were particularly happy to have commenced drilling our first well in Joffre and the pipeline is now being tied in. In addition, we are optimistic about our prospects in Joffre, having exercised our option earlier in the year; plus, we have surveyed three new locations in the Preeceville area and we are planning to drill there in Fall as well," he added. "As we have stated in the past, we are pleased at the progress we have made to date and we remain optimistic about the oil and gas prospects at all of our sites."

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.

The TSX Venture Exchange has neither approved nor disapproved the contents of this Release.

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