Nordic announces new flow-through offering



    WINNIPEG, June 20 /CNW/ - Donald Benson, Chairman and Chief Executive
Officer of Nordic Oil and Gas Ltd. ("Nordic" or the "Corporation"), today
announced the Corporation's intention to undertake an offering (the
"Offering") by way of a non-brokered private placement, of up to 4,000,000
units (the "Units") at a price of $0.30 per Unit for aggregate gross proceeds
of up to $1,200,000. In this regard, Form 4A has been filed with the TSX
Venture Exchange.
    Each Unit will consist of one Flow-Through Common Share, within the
meaning of the Income Tax Act (Canada), plus one-half of a Share Purchase
Warrant (the "Warrant") of the Corporation. Each full Warrant will entitle the
holder to purchase one regular Class A Common Share of the Corporation at a
price of $0.40 for a period of two years from the date of issuance. The
Flow-Through Shares and the warrants underlying the Units will be subject to a
4-month hold period.
    Proceeds from the Offering will be used to fund the Corporation's initial
2007 drilling program at Joffre, Alberta, Canada, which will consist of one
Coal Bed Methane ("CBM") well, one Viking well and three Belly River wells.
    Directors and officers of the Corporation may participate in the
Offering. Purchases of Units by a director and/or officer of the Corporation
will be a "related party transaction" within the meaning of Policy 5.9 Issuer
Bids, Insider Bids, Business Combinations and Related Party Transactions
("Policy 5.9"), but will be exempt from the valuation and minority shareholder
approval requirements of Policy 5.9 by virtue of the fact that the fair market
value of the consideration for the transaction, insofar as it relates to
related parties, will not exceed 25% of the market capitalization of the
Corporation.
    Commenting on the proposed financing, Mr. Benson stated: "We have a
number of drilling initiatives in Joffre, and we especially want to move
forward as quickly as possible with the three Belly River, one Viking and one
CBM well. These funds will allow us to proceed in the coming weeks."
    In other news, Mr. Benson also stated that Nordic and its industry
partner have severed their relationship with the Cote First Nation of Kamsack,
Saskatchewan, with respect to the development of oil and gas resources on land
owned by Cote First Nation. The Corporation has been waiting for Cote
officials to sign the surface lease agreement since August 2006, which would
have allowed Nordic onto the land to drill the first test well.
    "Unfortunately, this has not happened, and this has led to the Cote First
Nation feeling that we have not fulfilled the requirements of the original
contract," Mr. Benson. "This simply is not the case, as we had every intention
of drilling this well had we been granted the surface lease, however we could
not do so. Rather than pursue legal action, we felt it was in the best
interests of both the Corporation and our shareholders to sever our
relationship with the Cote First Nation and simply move on to other
initiatives."
    In addition, Mr. Benson also stated today that the Corporation had made
its first dividend payment with respect to its 2-Year 8% Convertible
Debentures issued in December 2006.

    About Nordic Oil and Gas Ltd.

    Nordic Oil and Gas Ltd. is a junior oil and gas company engaged in the
exploration and development of oil, natural gas and Coal Bed Methane in
Alberta and Saskatchewan. Nordic Oil and Gas Ltd. presently has seven
producing wells in the Joffre area. In addition, it has three Coal Bed Methane
wells drilled and cased awaiting tie-in. The Company is listed on the TSX
Venture Exchange and trades under the symbol NOG.

    The TSX Venture Exchange has not reviewed nor accepts responsibility for
    the adequacy or accuracy of the contents of this News Release.

    %SEDAR: 00015188E




For further information:

For further information: Donald Benson, Chairman & CEO, Nordic Oil & Gas
Ltd., Tel: (204) 956-5042, Fax: (204) 897-7154, E-mail: dbenson57@shaw.ca

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Nordic Oil & Gas Ltd.

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