July 26, 2004

NORDIC OIL AND GAS ANNOUNCES 2003 YEAR-END AND FIRST QUARTER 2004 FINANCIAL RESULTS

WINNIPEG, MB. (JULY 26, 2004) - Nordic Oil and Gas Ltd. (TSXV: NOG) today reported the results of operations for its year ended December 31, 2003 and its first quarter ended March 31, 2004. Reporting of the 2003 financial statements was delayed because the Company had to secure the services of a new auditor, as the previous auditor no longer undertakes this type of work. All amounts referenced herein are in Canadian dollars.

YEAR-END RESULTS

Revenue for the year ended December 31, 2003 totaled $479,261, up significantly from the $28,113 reported for 2002. The year's total included $419,261 in oil and gas revenue, compared to no revenue during 2002. As a result of this strong growth in revenue, net income for the year 2003 was $101,090, compared to a net loss of $63,359 for the previous year. This translated into positive earnings per share (EPS) of $0.0121 (basic) and $0.0119 (fully diluted) for 2003, versus losses of $0.0145 and $0.0141 respectively in 2002. Cash and cash equivalents was down slightly from a year ago to $499,973 from $600,650 in 2002, however cash flow from operating activities totaled $458,667 at the end of 2003, compared to a loss of $11,035 in 2002. Total assets as at December 31, 2003 were $2,645,168 (including $1,945,839 in property and equipment) as opposed to $1,549,745 for the same period last year.

2003 HIGHLIGHTS

The strong financial results for the year 2003 are a direct result of the active drilling program the Company undertook in Joffre, Alberta during the year. Overall, the year was highlighted by the following:

• The Company strengthened its financial position with two successful Private Placement financings ­ the first in the amount of $400,000 through the sale of 1 million Common Shares of the Company on a flow-through basis, at a price of $0.40 per share, and the second in the amount of $170,000 through the sale of 425,000 Common Shares of the Company, also at a price of $0.40 per share;
• The Company acquired a significant interest in certain lands in the Joffre area, along with options to purchase the Petroleum & Natural Gas (P&NG) Rights to an additional 480 acres of land adjacent to its existing property;
• The Company acquired an 80% interest in a Special Exploration Permit for the P&NG rights covering approximately 65,000 acres in Preeceville;
• The Company commenced drilling its first Natural Gas well in Joffre in May and began testing it later in the Fall; the well flow tested at 600 MCF per day, was subsequently tied-in and commenced production in October;
• Seismic work was completed in Preeceville and plans were announced to drill an exploration well on these lands;
  

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