May 1, 2006 Newsrelease

May 1, 2006

NORDIC OIL AND GAS ANNOUNCES 2005 YEAR-END RESULTS

WINNIPEG, MB. (MAY 1, 2006) - Donald Benson, Chairman and Chief Executive Officer of Nordic Oil and Gas
Ltd. (TSXV: NOG) announced the Company’s financial results from operations for its year ended December 31,
2005. All amounts referenced herein are in Canadian dollars.

Revenue for the year totaled $1,093,807, a decrease of $682,050 from the $1,775,857 reported for 2004. The 2005
total included $1,180,663 in Natural Gas revenue, compared to $1,524,304 during 2004. The decrease in total
revenue was a largely due to a negative total for liquid sales – ($130,205) as opposed to $190,352 in 2004. In the
fourth quarter of 2005, the operator adjusted the gas analysis of the wells and made an adjustment for amounts paid
for natural gas liquids and for the heat value of natural gas. This resulted in a reduction to the gross revenue in 2005
in the amount of $303,000.

Cash, including term deposits for 2005, was up from a year ago to $1,457,601 compared to $934,890 in 2004. In
addition, net cash flow from operating activities (cash received from operators minus cash paid to suppliers and for
royalties, plus interest earned) totaled $385,526 for the year ended December 31, 2005, a significant increase from
the $74,269 reported in prior year.

Total assets as at December 31, 2005 were $4,695,849, compared to $3,403,501 in 2004, which represents an
increase of approximately 40%. General and administration expenses for the year were up over 2004 - $139,404
versus $99,048. This was due primarily to an increase in the Company’s Investor Relations initiatives and the legal
and other fees associated with the proposed $5.6 million financing that did not close. Overall expenses decreased to
$1,353,661 in 2005 compared to $1,506,365 in 2004.

The Company recorded a net loss of $276,925 for the year, compared to the 2004 loss of $195,333. As was the case
last year, the 2005 loss can be attributed to the costs related to stock options, Asset Retirement Obligation (ARO)
and higher depletion costs which were recorded as expenses on the income statement. The stock options had an
estimated cost of $77,752 for the year under review, compared to $74,440 in 2004.

Commenting on the financial results Mr. Benson stated: "We are generally pleased with the overall results for the
year, despite the decrease in revenue. This is a one-time anomaly and should not be viewed negatively toward the
final results. We exited the year with two new wells on production and two successful financings. Our average
production for the year was 503 MCF/D, or 84 BOE/day from our Joffre wells and this will grow significantly
throughout 2006 when our new CBM wells are on production.”

The continued growth in cash from operations and the Company’s overall cash position, including short-term
investments, are also areas of strength, Mr. Benson added. “The past year has been a strong one for Nordic Oil and
Gas on the operational front as well,” he said. “I feel we accomplished a great deal during the year and we have seen
the Company move forward in many aspects.”

In February, Nordic reached an agreement with Trident Exploration Corp. (an industry leader in the field of
Coal Bed Methane (CBM) exploration and development) for the pooling of each company's interests in
section 20-38-24 W4 in Joffre with the intent to drill a Coal Bed Methane well in the Spring. This well
subsequently was drilled, perforated and put on production at year-end.
Later that same month, Nordic Oil and Gas and its JV partner, Western Warner Oils, signed an agreement
with Indian Oil & Gas Canada and the Cote First Nation of Kamsack, Saskatchewan to develop oil and gas
reserves on 14,355 gross acres of Cote land north of Kamsack.
March saw the successful completion of the processing of 37 kilometres of 2-D seismic data in Preeceville,
and preliminary analysis of the data confirmed the structural trends that had previously been mapped in the
southern four townships of Nordic’s six-township property are seen to extend into the two most recently
acquired townships.
During the summer, AJM Petroleum Consultants, a leading reservoir engineering company was hired to
evaluate the potential of Nordic’s Coal Bed Methane interests in Joffre. The report subsequently suggested
that Nordic’s possible recoverable CBM reserves on its Joffre property exceeds 10 Billion Cubic Feet
(BCF).
In September, the Company commenced shooting four lines of seismic over a 28.2 kilometre area on its
Cote First Nation land. The seismic data helped Nordic identify the location for the Company’s first well in
the area.
Also in September, Desoto Resources Ltd., another of Nordic’s Joint Venture Partners, applied for down
spacing on three sections of land in Joffre – 18-38-24 W4, 20-38-24 W4 and 24-38-25 W4. The down
spacing allows the companies to drill four wells per pool, per section in the Edmonton and Belly River
zones. The Holding Application is approved, resulting in Nordic having access to 20 new drilling
opportunities on these lands.
In early October, the Company licensed its 14-14-39-5 W2 well in Preeceville, and began preparing to have
the well drilled in November. The well was spud at the end of November and was drilled and cased at a
depth of 400 metres. This well may be re-entered in the Spring and drilled to 1,200 metres.
In November, Nordic signed an agreement with a major Calgary-based exploration company specializing in
Coal Bed Methane exploration and development, to farm-out certain interests on two sections of land in the
Joffre area. The agreement calls for two new CBM wells to be drilled on sections 18-38-24 W4 and 24-38-
25 W4, at no cost to Nordic.
In early December, the Company’s 102-3-24-38-25 W4 Belly River well at Joffre, which was drilled during
the fourth quarter of 2004, was tied-in and placed on production.
In mid-December, the Company announced the successful closing of the first of two private placement
offerings. This Offering consisted of the sale of 3,000,000 units at a price of $0.40 per Unit for aggregate
gross proceeds to the Corporation of $1,200,000.
Later the same month, the Company successfully closed a second Private Placement Offering of 424,175
units of the Corporation at a price of $0.40 per Unit for gross proceeds of $169,670.
The year closed out with the Company tying-in its first Coal Bed Methane well in Joffre on section 5-20-
38-24 W4 and bringing the well on production. This new CBM well brought to five the number of wells
Nordic Oil and Gas had on production in the Joffre area at year-end.
The Company has begun 2006 with several significant announcements regarding the drilling of new Coal Bed
Methane wells in Joffre, along with other key initiatives:

JANUARY

The Company and its industry partner completed drilling a new Coal Bed Methane well at 10-18-38-24 W4 in
Joffre. This well will be paid for 100% by Nordic’s 50/50 partner.

FEBRUARY

The Company and its industry partner completed drilling the second of three new Coal Bed Methane wells on
its Joffre property, located at 14-18-38-24.

MARCH

The Company and its Joint Venture industry partner completed the drilling of their third new Coal Bed Methane
well located at 7-24-38-25 W4 on Nordic’s Joffre property. The well was drilled and paid for 100% by Nordic’s
JV partner, with the JV partner earning a 50% interest in the Edmonton sands and coals in the section. The
completion of this new CBM well brings to eight the number of wells in which Nordic Oil and Gas has an
interest in the Joffre area. Furthermore, an additional two wells are scheduled to be drilled in the area following
break-up.

Looking ahead to the remainder of 2006, Mr. Bensons stated: “We began the year with a strong and extensive
drilling program in Joffre and the two successful financings at the end of 2005, along with cash from existing
operations, will allow us to quickly move forward with our plan to drill up to 15 new wells in the region. The four
months of production from our first CBM well and these three new wells drilled in 2006, have given us eight
additional CBM locations within the same three sections of land, and in addition, we have nine Belly River
locations.”

In Saskatchewan, the Company expects to drill a new exploration well on the land owned by the Cote First Nation
near Kamsack.

"Nordic Oil and Gas will continue focusing its activities and initiatives in its key operating areas, maintaining a high
working interest at all our properties, thereby ensuring that we will competently manage all aspects of its operations.
We also look forward with great anticipation toward developing our new Cote First Nation property later this year,"
Mr. Benson concluded.

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