May 17, 2005 Newsrelease

May 17, 2005

NORDIC OIL AND GAS ANNOUNCES MODIFICATIONS TO FINANCING PLANS;

Company Considering Selling Production at Joffre

Focus Will Centre on Development and Drilling Programs at Preeceville, Kamsack and High Level Properties

WINNIPEG, MB. (May 17, 2005) - Donald Benson, Chairman and Chief Executive Officer of Nordic Oil and Gas Ltd. today announced certain changes and modifications to the Corporation's previously announced plan to raise up to a maximum of $5,600,000 by way of a Private Placement Offering of Flow-Through Common Shares and a Public Offering of Class A Common Share Units (the "Offerings").

Effective immediately, the Public Offering of up to 11,200,000 Common Shares via a long-form prospectus has been cancelled. However, the Private Placement Offering of Flow-Through Share Units ("FT Units") will continue at a revised price $0.50 per Unit on a best commercial efforts basis to residents in the provinces of British Columbia, Alberta, Saskatchewan, Manitoba and Ontario. Up to 2,000,000 Flow-Through Shares will be offered as part of this revised financing.

Each FT Unit will continue to consist of one Flow-Through Common Share and one-half Class A Common Share Purchase Warrant ("Warrant"). Each full Warrant will entitle the holder to purchase one Class A Common Share of the Corporation at a price of $0.75 for a period of one year from the date of issuance. It is expected that this revised Offering will close on or about May 27, 2005. All the terms of the Offering are subject to regulatory and TSX Venture Exchange approval.

"The difficulties in raising funds through equity financing have been well documented in recent weeks. Flow-Through Shares continue to be popular with Canadian investors as they are the only remaining tax-assisted investment vehicle still available. As such, we believe that it is in the best interests of Nordic Oil and Gas and its shareholders to allow interested parties to participate in the reduced Offering," Mr. Benson stated.

In other news, Mr. Benson noted that the Company is also entertaining an offer to sell its gas production at Joffre, Alberta: "We are currently in discussions to sell our property at Joffre. Should we be successful in this venture, we will combine the proceeds from the sale with those from the revised Private Placement Offering to further our exploration and drilling activities at our other three locations in Saskatchewan and Alberta.

"The Company will focus on its Preeceville, Saskatchewan property, along with our recently acquired First Nations' lands at Kamsack, Saskatchewan and High Level, Alberta respectively," Mr. Benson added. "We are extremely optimistic about each of these areas and we feel it is imperative that we move forward as quickly as possible with the development and drilling programs that we have planned for the coming months."

In particular, Nordic plans to commence with its exploration program on the Cote First Nation property near Kamsack, and the Beaver First Nation property near High Level, beginning with seismic surveys on the Cote land, followed by the drilling of a test well later this Summer after interpretation of the seismic. The funds raised will also pave the way for the Company to drill at least two shallow gas wells on the Beaver First Nation land, along with one, and perhaps two new test wells at its Preeceville property, also during the Summer months.

Nordic received further validation of the outstanding potential of its Preeceville property when it was announced recently that a US-based oil and gas company is planning to immediately commence drilling on approximately 235,000 acres immediately adjoining the Company's Preeceville land.

"The exploration program on the lands adjacent to ours is a clear indication that this is a very highly prospective region and we are eagerly anticipating the start of our own drilling program at Preeceville in the coming weeks," Mr. Benson added.

Mr. Benson also noted that the Company is contemplating the amalgamation of Nordic Oil and Gas Ltd. and Western Warner Oils Ltd. In 1989, Nordic Management Ltd., a Company founded by Mr. Benson in 1982, acquired control of Western Warner Oils Ltd., one of Canada's oldest oil and natural gas exploration and development companies founded back in 1926. Mr. Benson became Chairman and CEO of Western Warner upon the acquisition. It is anticipated that this amalgamation would take place during the fourth quarter of 2005.

"This would represent a natural progression for the Company as both Western Warner and its subsidiary, Desoto Resources Limited are joint venture partners with Nordic in each of its four regions of operations, and Desoto Resources is Nordic's largest single shareholder," Mr. Benson explained.

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

Don Bain
Director, Communications & Investor Relations
Nordic Oil & Gas Ltd.
Tel: 204-229-7751
Fax: 204-334-3764
E-mail: donbain@mts.net