November 29, 2006 Newsrelease

November 29 , 2006

NORDIC OIL AND GAS ANNOUNCES FINANCIAL RESULTS FOR Q3 AND FIRST NINE MONTHS OF 2006

WINNIPEG, MB. (NOVEMBER 29, 2006) – Nordic Oil and Gas Ltd. (TSXV: NOG) today announced the Company’s financial results from operations for its third quarter and nine-months ended September 30, 2006. All amounts referenced herein are in Canadian dollars.

Revenue for the first nine months of 2006 totaled $520,717 down from the $1,028,509 reported for the same period in 2005. This year's total includes $484,009 in oil and gas revenue, compared to $936,938 during the first nine months of 2005. The decrease in revenue is due mainly to the significant drop in gas prices during the year.

Total assets as at September 30, 2006 were $3,777,225 up over $740,000 from the $3,032,283 as at the same date in 2005. The primary reason for the growth in assets to date is the increase in the oil and gas interests owned by the Company – during the year to date, Nordic has completed three new wells in the Joffre area. Gross profit from operating activities (production revenue minus production costs) for the nine months ended September 30, 2006, totaled $232,191 compared to $609,045 during the same period in 2005. Earnings before non-cash items were ($6,704), compared to $349,406 during the third quarter of 2005. Cash and cash equivalents as at September 30, 2006 totaled $269,540 compared to $376,480 as the same period in 2005. The Company recorded a net loss of $328,990 for the nine months under review.

Overall, expenses for the first nine months of 2006 were down significantly - $849,706 compared to $1,074,949 in the first nine months of 2005. The main reason for the substantial decrease in expenses was the drop in depletion and amortization expense to $194,138 from $313,026 last year. Production costs for the nine months under review also decreased sharply to $277,298 compared to $413,668 during the same period in 2005. This was due largely to the decrease in royalty costs for the period to $118,063 from $255,065 in 2005.

Average monthly production volume for the nine months ended September 30, 2006 was 8,515 Gigajoules (GJ), or47 BOE/day. The Company received $6.01/GJ as an average gas price during the nine months under review.

Revenue for the third quarter of 2006 totaled $133,499, a decrease of approximately $27,400 from the second quarter of this year. Cash and short term investments for Q3 2006 decreased by approximately $1.2 million compared to the end of Q2 2006. Total assets increased marginally during the quarter - by approximately $20,000.

General and administration expenses for the third quarter of 2006 totaled $47,101 up slightly from the $43,914 versus reported in the second quarter of this year. Overall, third quarter expenses were down to $156,349, compared to $157,892 during the previous quarter. In addition, production costs for the third quarter also decreased compared to the last quarter - $80,563 compared to $87,627 in Q2 2006.

“The year to date has been categorized by considerably lower gas prices compared to what we saw in 2005,” stated Mr. Benson. “Although both our revenue and production totals are down somewhat from a year ago, we continue to maintain volumes of natural gas generating sufficient revenue to meet our overhead costs, and we expect to see our production rise to higher levels in the coming months as we prepare to bring up to five new wells onto production before the end of the year.

“In addition, our cash and cash equivalents will be further enhanced with the closing of the debenture financing that was recently announced,” he said.

The Company announced several important initiatives, both during Q3 and subsequent to the end of the quarter, including the following:

In July, the Company announced plans to commence drilling of the 15-12-38-25 W4 well in Joffre, pending approval of an Authorization for Expenditure from its partner. Drilling of this well subsequently commenced and was completed in early November;
In August, the Company’s 14-14-39-5 W2 well located near Preeceville, Saskatchewan was perforated and results indicated a small show of pressure from inflow to the well bore, which Nordic believes suggests the presence of shale gas;
Subsequent to the end of the quarter, in October, the Company announced that its special exploratory permit in Preeceville, issued in 2001, was converted into two five-year petroleum and natural gas leases for rights from the surface to the basement, covering 10.5 sections of land;
Also in October, the Company announced a proposed financing of secured convertible debt instruments of up to $1 million. The first draw down from the financing is expected to occur on November 29, 2006 for an amount in excess of $500,000;
At the end of October, the Company completed its farmin agreement, which was previously announced earlier in the year, giving Nordic a 20% interest in a new Mannville well at section 3, twp. 57, range 07 W4 ;
In November, drilling and casing was completed at the Company’s 16-20-38-24 W4 and 15-12-38-25 W4 well locations in Joffre and logs are now being analyzed.

Looking ahead to the remainder of 2006, Mr. Benson stated that Nordic is optimistic and excited about the current initiatives it has undertaken and how they will strengthen the Company’s position as it moves into the start of 2007.

“Our financing will allow us to continue with our exploration initiatives in both Alberta and Saskatchewan, and we eagerly await the recently drilled and cased new wells to be tied-in and on production,” he stated. “When all are on production, we will have 10 producing wells in Joffre, which could see the Company exit the year at approximately 200BOE/day.

“In addition, we are also very excited about the strong prospects for the development of shale gas in Saskatchewan,” he added. “Although still in its infancy in Canada, shale gas today is at the same stage of development that Coal Bed Methane was in 2002. The Preeceville area is currently being heavily explored for shale gas, with over 20 new wells having been drilled in recent months, and Nordic Oil and Gas lands are right in the middle of all this activity.”

In other news, Nordic also announced that its has re-filed an amended version of its Management’s Discussion and Analysis Document for the year ended December 31, 2005, to now include comment on the effectiveness of disclosure controls and procedures of the Company, which was inadvertently omitted from the original document. The MD&A has been re-filed through the System for Electronic Document Analysis and Retrieval (SEDAR). The content of the amended MD&A otherwise remains unchanged from the original document filed on May 1, 2006.

In addition, the Company has also re-filed through SEDAR, Form 52-109F1 duly signed by Mr. Benson and Barry Palka, acting Chief Financial Officer. Both documents, along with this News Release will also be filed on the Company’s website at www.nordicoilandgas.com.

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