May 30, 2006 Newsrelease

May 30, 2006

NORDIC OIL AND GAS ANNOUNCES 2006 FIRST QUARTER RESULTS

WINNIPEG, MB. (MAY 30, 2006) - Donald Benson, Chairman and Chief Executive Officer of Nordic Oil and Gas Ltd. (TSXV: NOG) today announced the Company’s financial results from operations for its first quarter ended March 31, 2006. All amounts referenced herein are in Canadian dollars.

Revenue for the first three months of 2006 totaled $226,476, a decrease of $175,456 from the $401,932 reported for the first quarter in 2005. This year’s total included $213,632 in Natural Gas revenue, compared to $356,309 during 2005. The decrease in total revenue in the first quarter was also impacted by a decrease in liquids revenue – $4,271 as opposed to $29,343 for the first three months of 2005. This resulted from an adjustment by the operator of the gas analysis of the wells, which in turn led to an adjustment for amounts paid for natural gas liquids and for the heat value of natural gas.

Cash and cash equivalent, including term deposits for the quarter, was up from a year ago to $1,108,073 compared to $666,684 in the first quarter of 2005. Net cash flow from operating activities (cash received from operators minus cash paid to suppliers and for royalties, plus interest earned) totaled $117,368 for the first quarter in 2006, a decrease from the $219,756 reported in prior year.

Total assets as at March 31, 2006 were $4,503,598, compared to $3,165,961 at the same period in 2005, which represents an increase of approximately 43%. General and administration expenses for the quarter were down over the comparable period in 2005 - $27,952 versus $34,774. Overall expenses decreased by approximately 12% to 258,167 for the first quarter of 2006, compared to $294,571 in 2005. In addition, production costs for the quarter also decreased compared to the same period a year ago - $109,108 compared to $182,176 last year.

The Company recorded a net loss of $140,799 for the period compared to a loss of $74,814 during the first quarter of 2005.

Average monthly production volume for the quarter ended March 31, 2006 was 10,979 GJ, or 58 BOE/day. The Company received $7.07/GJ as an average gas price during the quarter.

Commenting on the financial results Mr. Benson stated: “While we are somewhat disappointed at our revenue total for the quarter, we expect this to improve significantly as we move forward through 2006 when our new CBM wells that were drilled earlier this year, are placed on production.

“However, our continuing strong cash and cash equivalents position, including short-term investments, along with our growth in overall assets are areas of strength for the Company, “ Mr. Benson added. “We have started the year strongly in terms of advancing our drilling program and our recent announcement of a proposed $4 million financing will certainly enhance our bottom line.”

The Company has begun 2006 with several significant announcements regarding the drilling of new Coal Bed Methane wells in Joffre:

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 later in the year.

Subsequent to the end of the first quarter, Nordic announced that it had licensed a new Belly River well at 16-20-38-24 W4 at Joffre and that it was seeking a rig and will commence drilling as soon as one is secured. The licensing of this Belly River well complements Nordic’s recent announcements that three new Coal Bed Methane (CBM) wells have been drilled at Joffre.

In addition, Nordic also announced its intention to raise up to $2 million in units by way of a Private Placement Offering, at a price of $0.40 per Unit and, up to a further $2 million in common shares on a flow-through basis at a subscription price of $0.55 per Flow-Through Common Share. The Units will consist of one common share and one-half of one common share purchase warrant (“Warrant”), with each whole Warrant exercisable into one common share of the Corporation for a period of 18 months from Closing at a price of $0.60 per share. It is expected that the Offering will close on or about June 12, 2006, subject to regulatory approval. All the terms of the Offering are also subject to the approval of the TSX Venture Exchange.

Looking ahead to the remainder of 2006, Mr. Benson stated: “We began the year with a strong and extensive drilling program in Joffre and the recent announcement regarding the proposed financing, 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 the three new wells drilled in 2006, leave us with eight additional CBM and nine additional Belly River well locations within the same three sections of land.”

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

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