October 26, 2006 Newsrelease

October 26, 2006

NORDIC ANNOUNCES NEW DEBENTURE FINANCING

WINNIPEG, MB. (October 26, 2006) - Donald Benson, Chairman and Chief Executive Officer of Nordic Oil and Gas Ltd. (TSXV: NOG) today announced a proposed financing of secured convertible debt instruments (“Debentures”) of up to $1 million.

The conversion terms of the Debentures will be that each holder may covert the Debentures into common shares of Nordic Oil and Gas at any time within 24 months of their issuance at a conversion price of $0.25 per share. The first draw down from the financing is expected to take place within the next two weeks, with the final draw down occurring by December 12, 2006.

Nordic negotiated the terms of the Debenture financing with a national investment dealer. They will assist the Corporation with respect to the Offering and will be paid a fee of 8% of the gross proceeds of the Offering.

Commenting on the proposed financing, Mr. Benson stated: “These funds will be used to continue our exploration initiatives in Alberta and Saskatchewan and for general corporate operations.”

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