January 25, 2007 Newsrelease

January 25, 2007

NORDIC TO ISSUE NEW CLASS OF PREFERRED SHARES TO FINANCE EXTENSIVE DRILLING PROGRAM IN 2007

WINNIPEG, MB. (January 25, 2007) - Donald Benson, Chairman and Chief Executive Officer of Nordic Oil and Gas Ltd. (the “Corporation”, or “Nordic”), today announced several new initiatives the Corporation will be undertaking in the coming weeks.

The Corporation’s upcoming Annual General Meeting, to be held on March 2, 2007, will also be a Special Meeting in that shareholders will be asked to approve a new class of preferred shares. These new shares will provide the Corporation with more flexibility in raising capital for the future development of its properties.

“In the past, we have raised most of our funds through the issue of flow-through shares, which do not always meet our needs, as costs of things like pipelines and compressors can not be financed with flow-through shares,” Mr. Benson stated. “In addition, development drilling does not lend itself to flow-through shares either, as the 100% tax write-off does not apply.”

The drilling program the Corporation is planning for Joffre Alberta this year calls for seven Coal Bed Methane wells, two Viking wells and seven Belly River wells. “We will require a minimum of $4,000,000 to drill and tie-in these wells and we will be marketing the preferred shares once approved by the shareholders at a price of $1.00 per share with the conversion to common shares on a one-for-one basis. This should meet the needs of the investor, and at the same time minimize dilution,” Mr. Benson added.

These are wells that will be drilled in a proven area where the Corporation has been proving the lands over the last four years. Nordic anticipates that its drilling program will begin during the first week in March and accordingly, the Corporation has just completed surveying three new locations - 6-24-38-25 W4, 5-18-38-24 W4 and 1-24-38-25 W4. Two wells are planned at each location.

In other news the well announced at 1-3-58-07 W4 has been drilled and the initial interpretation of the logs suggest two meters of sand to be gas bearing and the companies involved are currently planning to perforate and test the well.

“Until we know the initial formation pressure it is not certain what the size of the reservoir is, but we are please that we have gas indicated on the logs,” Mr. Benson said. The well was drilled into the Mannville zone and Nordic will be paying 37.5 % of the costs to earn a 20% interest in the well and 960 acres of land.

At Preeceville, Mr. Benson stated that the Corporation is encouraged by the recent press release from a company which drilled 16 wells just south of the Nordic property. “They are planning on perforating a number of these wells shortly and will then determine a frac

program to stimulate the formation,” he said.

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