December 12, 2002

NORDIC OIL AND GAS COMPLETES FIRST SEISMIC SURVEY AT PREECEVILLE, PREPARES FOR DRILLING AT JOFFRE

WINNIPEG ­ Donald Benson, Chairman and Chief Executive Officer of Nordic Oil and Gas Ltd., an emerging oil and gas exploration, development and production company, announced today that the Company has completed its initial seismic survey in the Preeceville area of southeast Saskatchewan, and is applying for a well license to commence drilling at its Joffre, Alberta property.

"Fourteen kilometres of seismic work have been completed at Preeceville and our geologists are studying and analyzing the data," Mr. Benson said.

From the oil sands in Alberta's northeast, to the oil and gas fields in the Lloydminster/Kindersley area, to the oil region of southeastern Saskatchewan and southwestern Manitoba, migrating oil and gas is trapped by a huge salt collapse structure. The Preeceville area, located approximately 100 kilometres north of Yorkton, is a shallow, cost-effective oil target. "It is situated in an area where we believe there are enormous quantities of oil are trapped along a geological trend called the 'prairie evaporite salt collapse edge'," said Mr. Benson

"In addition to our investment in seismic activity, we also plan to drill a test well in this area in 2003,"he added. "For a modest expenditure, we have an opportunity to drill for a world-class target."

At Nordic's Joffre property, drilling work is expected to commence as soon as the Company has received its well license. "We are hopeful that we will be spudding a new well in the region by the end of this year," stated Mr. Benson.

The Joffre property is located in West Central Alberta, approximately 30 kilometres north- east of Red Deer, and is a rich hydrocarbon area of the province. It consists of existing natural gas production as well as a significant land base with strong development opportunities.

"Joffre is what we call a 'bricks and mortar' prospect," explained Mr. Benson. "It already has an existing infrastructure of pipelines and facilities available; current gas production; pipelines generating transportation fees; and, existing development drilling locations."

In addition, Nordic owns and operates a profitable river crossing in the Joffre area, which currently is tied to the Canadian Natural Resources pipeline system. This is of some significance given that gas producers north of the Red Deer River that use this river crossing must pay applicable fees to Nordic Oil and Gas.

"We intend at some point to invest further in this opportunity by enhancing our marketing initiatives and upgrading our equipment," said Mr. Benson. "We have the ability to twin our line across the Red Deer River, thereby significantly increasing our revenue potential."

This current activity comes as a result of Nordic Oil and Gas recently completing the acquisition of certain oil and gas properties and equipment from Desoto Resources, which represented Nordic's Qualifying Transaction as a former Capital Pool Company on the TSX Venture Exchange. Pursuant to the acquisition, Nordic acquired an 85% interest in Desoto's interests in natural gas production, petroleum and natural gas leases, certain associated equipment and natural gas pipelines located in and around the Joffre area of central Alberta.

The agreement calls for Nordic Oil and Gas to drill three wells in Joffre and carry out seismic and other qualifying surveys and exploration activities with respect to 42 sections of land near Preeceville.

Nordic Oil and Gas Ltd. currently is listed on the TSX Venture Exchange (TSXV: NOG) as a Tier 2 oil and gas company.

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