January 24, 2006 Newsrelease

January 24, 2006

NORDIC OIL AND GAS ANNOUNCES NEW COAL BED METHANE WELL TO SPUD THIS WEEK

WINNIPEG, MB. (JANUARY 24, 2006) - Donald Benson, Chairman and Chief Executive Officer of Nordic Oil and Gas Ltd., today announced that the Company has received confirmation from its industry partner that they will spud a Coal Bed Methane (CBM) well at 10-18-38-24 W4 in Joffre later this week. This well will be paid for 100% by Nordic’s 50/50 partner.

Two additional wells are planned for this section and it is anticipated that the rig will move to these locations next week.

In other news, the Nordic Oil and Gas Board of Directors has approved the granting of 350,000 stock options to various officers, directors and consultants of the Company at an exercise price of $0.40 per common share.

The breakdown of the newly issued stock options is as follows:

Donald Benson Chairman & CEO 80,000

Keith Peterson, Secretary-Treasurer 50,000

Michael Mann, Director 50,000

Barry Palka, Director 50,000

Brahm Silverstone, Director 50,000

In addition to the above, a further 70,000 stock options have been granted to three Nordic Oil and Gas consultants, bringing the overall total of 350,000. The options are effective January 23, 2006 and will run for a period of five years.

The Company currently has 15,343,480 issued and outstanding Class A Common Shares.

Nordic Oil and Gas Ltd. is a junior oil and gas company listed on the TSX Venture Exchange. It 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