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August 30, 2006

NORDIC OIL AND GAS ANNOUNCES 2006 SECOND QUARTER AND FIRST HALF RESULTS

WINNIPEG, MB. (AUGUST 29, 2006) ­ Nordic Oil and Gas Ltd. (TSXV: NOG) today announced the Company's financial results from operations for its second quarter and six months ended June 30, 2006. All amounts referenced herein are in Canadian dollars.

Revenue for the first six months of 2006 totaled $387,218 down from the $705,686 reported for the same period in 2005. This year's six-month total included $355,022 in oil and gas revenue, compared to $628,821 during the first half of 2005. Total assets as at June 30, 2006 were $3,757,402, up over $698,000, or approximately 23% from the $3,059,189 as at the same date in 2005. The primary reason for the growth in assets to date this year is the increase in oil and gas assets to $3,449,148 from $2,166,982 a year ago and the increase in cash to $71,182 versus negative $42,817 for the same period in 2005. Net cash flow from operations totaled $25,329 for the first six months of 2006. Cash and cash equivalents (including short term investments) for the first half of 2006 totaled $377,669, versus $457,504 for the same period a year ago.

General and administration expenses for the first six months of 2006 were down over the comparable period in 2005 - $71,866 versus $75,183. Overall expenses decreased by approximately 17% to $416,059 for the six months of 2006, compared to $500,872 in 2005. Production costs for the period decreased marginally compared to the same timeframe a year ago – $99,508 compared to $107,867 for the first six months of 2005.

The Company recorded a net loss of $225,577 for the first six months of 2006, compared to a loss of $72,886 during the first half of 2005.

Average monthly production volume for the six months ended June 30, 2006 was 9,153.33 GJ, or 52 BOE/day. The Company received $6.37/GJ as an average gas price during the first half of the year.

Revenue for the second quarter of 2006 totaled $160,977, a decrease of approximately $142,400 from the $304,394 recorded during the same period in 2005. Cash and short term investments for Q2 2006 decreased by approximately $730,400 compared to Q1 2006.  Total assets for the quarter decreased by approximately $746,000 from the $4,503,598 as at March 31, 2006. Accounts payable for the quarter decreased by $672,079 from $970,317 as at March 31, 2006.

General and administration expenses for the second quarter of 2006 were up slightly over the first quarter of the year - $43,914 versus $27,952. Overall expenses decreased by approximately 39% to $157,892 for the quarter, compared to $258,167 in the first quarter of 2006. In addition, production costs for the second quarter also decreased compared to the first quarter – $87,627 compared to $109,108.

“Although both our revenue and production totals are down somewhat from a year ago, we continue to maintain volumes of natural gas generating sufficient revenue to meet our overhead costs,” Mr. Benson stated. “We have a significant amount of natural gas in the ground and we expect to see our production rise to higher levels in the coming months at prices that will be meaningful to the Company.”

During the second quarter of 2006, Nordic licensed a new Belly River well in Joffre at 16-20-38-24 W4.

Looking ahead to the remainder of 2006, Mr. Benson stated that the Company has a number of initiatives planned in the coming weeks:

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