October 25, 2006 Newsrelease

October 25, 2006

DRILLING OF NEW BELLY RIVER WELL AT JOFFRE TO COMMENCE THIS WEEK

WINNIPEG, MB. (October 25, 2006) - Donald Benson, Chairman and Chief Executive Officer of Nordic Oil and Gas Ltd. (TSXV: NOG) today announced several updates to initiatives either underway or planned for the immediate future.

JOFFRE

A new well will be drilled this week at the Company’s 16-20-38-24 W4 Joffre site and will be drilled to a depth of 915 metres into the basal belly river formation. A rig has moved onto the location and Nordic expects the well will be finished this week.

The Company has an 85% interest in some 4,400 acres of petroleum and natural gas leases in Joffre

PREECEVILLE

Nordic’s first special exploratory permit, issued in 2001, has now been converted into two five- year petroleum and natural gas leases for rights from the surface to the basement covering 10.5 sections of land. “Our exploration efforts have rewarded us with these five-year leases, which are over lands where we have shot substantial seismic,” Mr. Benson stated. “We are very excited about the shale gas play that has developed in the area as well as the deep targets, which we see on the seismic.”

The company also has an 80% interest in a further 159 sections in the two remaining special exploratory permits at Preeceville.

Of further note at Preeceville, the Saskatchewan Government land sale on October 17, 2006, saw the sale of two large land packages adjoining the Nordic Oil and Gas properties - one to the east of the Nordic lands totaling 103,763.41 hectares for a work commitment of $2,199,784.30 or approximately $20.00 per hectare; and the second to the west of the Nordic property totaling 107,938.96 hectares, for a work commitment of $1,268,282.78, or approximately $12.00 per hectare.

“We see this as a very significant development in the Preeceville area, given that our total work commitments on our three special exploratory permits averaged $5.00 per hectare,” Mr. Benson noted. “Our property is now totally surrounded by other companies and this increase in activity in the area can only be positive for Nordic Oil and Gas.”

KAMSACK

At Kamsack, Nordic is currently waiting on the Cote First Nation to sign a surface lease, which will allow the Company to drill its first well on these promising lands.

“The last few months have seen natural gas prices fall off dramatically, however they now seem to be returning toward the heights we experienced last year,” Mr. Benson said. “As we approach the coming winter, the weather in the month of November in the USA and Canada will dictate whether we see upward or downward pressure on natural gas prices.”

Currently, Nordic has five producing wells on production in Joffre, and the three CBM wells drilled earlier this year are awaiting tie-in and should be on production shortly. When added to the new well at 16-20-38-24 W4, this could see the Company meet its 2006 exit target of 200 BOED.

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