Nordic Oil and Gas acquires P & NG rights on one-half section of land in
Drumheller, Alberta

WINNIPEG, Oct. 1 /CNW/ - Donald Benson, Chairman and Chief Executive Officer of Nordic Oil and Gas Ltd. ("Nordic" or the "Company") today announced that the Company, in conjunction with its joint venture partner, Western Warner Oils Ltd. ("Western Warner") has acquired the Petroleum and Natural Gas (P & NG) rights on one-half section of its land in Drumheller, Alberta. The rights are from the surface to the base of the Belly River zone.

Nordic will immediately be moving to arrange for pooling of its newly acquired interest with the owner of the remainder of the land.

"This is an important step for the Company in the process to develop our Drumheller property," Mr. Benson stated. "This will enable us to move forward on the Underground Coal Gasification (UCG) project that we announced in July of this year.

"It is a requirement for us to own both the P & NG and the Coal rights in order for us to proceed on the UCG project," he added.

The basic UCG process involves drilling two wells into the coal - one for injection of the oxidants (water/air or water/oxygen mixtures), and another some distance away to bring the product gas to the surface. The technique offers an alternative to conventional coal mining methods.

Nordic and Western Warner own 3,856 hectares (9,528 acres) of coal leases located at Drumheller, Alberta.

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. The Corporation is listed on the TSX Venture Exchange and trades under the symbol NOG.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of the contents of this News Release.

This press release contains forward-looking statements with respect to Nordic Oil and Gas Ltd. and matters concerning the business, operations, strategy, and financial performance of Nordic. These statements generally can be identified by use of forward-looking words such as "may", "will", "expect", "estimate", "anticipate", "intends", "believe" or "continue" or the negative thereof or similar variations. Such forward-looking statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Forward-looking statements are based on a number of assumptions which may prove to be incorrect. Unless otherwise stated, all forward looking statements speak only as of the date of this press release and Nordic does not undertake any obligation to update such statements except as required by law.

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SOURCE Nordic Oil & Gas Ltd.

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; Don Bain, Corporate Secretary, Nordic Oil and Gas Ltd., Tel. (204) 229-7751, Fax: (204) 943-1829, E-mail: donbain1@mts.net; www.nordicoilandgas.com

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Nordic Oil & Gas Ltd.

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