Click Here To Go Back To Home Page

February 1, 2005

NORDIC OIL AND GAS , TRIDENT EXPLORATION REACH AGREEMENT TO DRILL UP TO FOUR COAL BED METHANE WELLS AT JOFFRE, ALBERTA

WINNIPEG, MB, (February 1, 2005) - Donald Benson, Chairman and Chief Executive Officer of Nordic Oil and Gas Ltd. is pleased to announce that the Company has signed an agreement with Trident Exploration Corp. of Calgary, for the pooling of each company's interests in section 20-38-24 W4 for all formations from the surface to the base of the Edmonton Group. The agreement calls for the two companies to drill a Coal Bed Methane (CBM) well on the property by April 15, 2005. It is anticipated that Nordic and Trident will eventually drill four CBM wells on the property.

This agreement comes following Nordic's successful initial test for CBM in November 2004, which included coring and canister testing to prove the gas content and the potential amount that is recoverable.

Nordic has an interest in 10 sections of land on its Joffre property, which contain coal seams in the Horseshoe Canyon formation at a depth of approximately 500 metres. It is thought that the Coal Bed Methane from these seams is capable of producing 200 to 300 thousand cubic feet per day (MCFD).

"We are extremely pleased to have the opportunity to work with Trident Exploration, one of Canada's largest Coal Bed Methane Producers, on this exciting project," Mr. Benson stated. "Trident has drilled in excess of 500 CBM wells during the past two years, and Nordic will certainly benefit from the CBM knowledge and technology that they have developed over the years."

Nordic also has plans to arrange the financing necessary to drill up to 15 CBM well on its adjoining lands in Joffre.

Coal Bed Methane is the largest untapped natural gas resource opportunity in North America. Industry analysts have suggested that producers will continue to migrate toward such unconventional natural gas opportunities, in which Canadian CBM will be a primary focus. The Petroleum Services Association of Canada has predicted that more than 3,000 CBM wells will be drilled in Canada this year compared to just 1,000 well in 2004.

"Coal Bed Methane production could represent one of the biggest growth opportunities in the Canadian oil and gas industry, and we are well-positioned to capitalize on this trend" said Mr. Benson. "We had identified the area as a strong candidate for Coal Bed Methane production some years ago, and we are excited about the prospects that this holds for the Company."

ABOUT COAL BED METHANE

Coal Bed Methane is natural gas contained in coal. It consists primarily of methane (the gas that is used in most residences). The methane is trapped or bonded to coal in coal seams. This trapping is the reason why the gas is not migrating elsewhere in the coal seams and surrounding rock units.

CBM is commonly referred to as an "unconventional" form of natural gas because of this trapping effect and that is primarily stored through absorption to the coal itself, rather than in the pore space of the rock, like most "conventional" gas.

The gas is released in response to a drop in the pressure in the coal. The gas must be liberated from its bond with the coal before it is recoverable. This generally requires at least some initial stimulation to begin the process and then a consistent high level of pressure must be maintained throughout the recovery area in order to maintain the pressure in the formation.

In other news, Mr.. Benson stated that the Company's Board of Directors has approved extended stock options as follows:

Donald Benson Chairman & CEO 30,000

Keith Peterson, Secretary-Treasurer 30,000

Michael Mann, Director 30,000

Barry Palka, Director 30,000

Brahm Silverstone, Director 30,000

In addition to the above-noted options, a further 110,000 stock options have been granted to three Nordic Oil and Gas consultants, for an overall total of 260,000 options. The options are effective January 31, 2005 and will run for a period of five years at a price of $0.45 per share.

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 does not accept responsibility for the adequacy or accuracy of this release.

For further information contact:

Donald Benson
Chairman and Chief Executive Officer
Nordic Oil and Gas Ltd.
Tel. (204) 956-5042.