January 03, 2007 Newsrelease

January 3, 2007

NORDIC COMPLETES TESTING OF TWO RECENTLY DRILLED WELLS IN JOFFRE; VOLUME EQUATES TO 83 BOE/D

Non-Brokered Private Placement Financing Also Completed

WINNIPEG, MB. (January 3. 2007) - Donald Benson, Chairman and Chief Executive Officer of Nordic Oil and Gas Ltd. (the “Corporation”), today announced that the Corporation has completed testing of the two most recently drilled Belly River wells in Joffre, Alberta, Canada and that the wells have tested at 310 mcf and 190 mcf after a 24-hour test.

“This equates to approximately 83 boe/d of additional production for Nordic,” stated Mr. Benson. “However, during the test, the wells were choked back, which suggests they may be capable of greater volumes.”

Nordic expects to have the wells tied in shortly.

Also at Joffre, Nordic has completed satellite imagery over its land holdings and is awaiting the interpretations. “We believe this will assist us in determining where best to drill additional wells in the area,” Mr. Benson added.

In addition, the Corporation is also arranging for a rig to commence drilling up to eight additional Belly River wells in Joffre, starting March 1, 2007.

“We expect to have the new locations surveyed and licensed over the next 60 days,” said Mr. Benson

In other news, the Corporation also announced the first closing of its previously announced offering of a non-brokered private placement at a price of $0.30 per unit. A total of 406,665 units were issued and the Corporation received aggregate gross proceeds of approximately $122,000.

Each Unit consisted of one Flow-Through Common Share, within the meaning of the Income Tax Act (Canada), plus one-half of a Share Purchase Warrant (the “Warrant”) of the Corporation. In addition, each full Warrant entitles the holder to purchase one regular Class A Common Share of the Corporation at a price of $0.40 for a period of two years from the date of issuance.

Directors and officers of the Corporation were eligible to participate in the Offering. Purchases of Units by officers and directors were considered a “related party transaction” within the meaning of Policy 5.9 Issuer Bids, Insider Bids, Business Combinations and Related Party Transactions (“Policy 5.9”), but were exempt from the valuation and minority shareholder approval requirements of Policy 5.9 by virtue of the fact that the fair market value of the consideration for the transaction, insofar as it relates to related parties, did not exceed 25% of the market capitalization of the Corporation.

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