Click Here To Go Back To Home Page

September 26, 2006

NORDIC OIL AND GAS ANNOUNCES PROGRESS IN SHALE GAS EXPLORATION IN SASKATCHEWAN

WINNIPEG, MB. (SEPTEMBER 25, 2006) - Donald Benson, Chairman and Chief Executive Officer of Nordic Oil and Gas Ltd. (TSXV: NOG) (the “Company”), today announced the 14-14-39-5 W2 well located near Preeceville, SK. was perforated during August and the Company noted that there was a small show of pressure from inflow to the well bore, which the Company believes indicates the presence of shale gas. In order to produce shale gas it is required that the formation be “fraced”, a process that stimulates the formation allowing the gas to flow. Another location in the area is now licensed and the Company contemplates coring this well and having the analysis completed by a major core analysis firm from the USA.

Shale gas exploration is in its infancy in Canada. We are today at the same stage that development of Coal Bed Methane was in Canada in 2002. In the USA, shale gas development is much more advanced with more than 35,000 shale gas wells on production. The Preeceville area is now being heavily explored with over 20 wells having been drilled in the last six months.

The Company is obtaining a surface lease at Cote near Kamsack and plans to drill a well there later this year.

At Joffre, the Company has three wells drilled that will be tied-in shortly and the Company plans to drill two additional wells on locations which have been licensed.

Since May, Nordic has been contemplating the closing of a financing by an Ontario based brokerage firm. Nordic has not ruled out the financing, however, at this time, it is unclear if the financing will be completed. Therefore, Nordic is looking at other options. According to Nordic Chairman, Donald Benson, “The four months spent waiting patiently has led to the need to look at other avenues. I certainly hope that they can complete a financing, however we are proceeding in a manner that allows us to look at all opportunities.

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