Nordic Oil and Gas announces 2007 third quarter and nine months results



    WINNIPEG, Nov. 29 /CNW/ - Nordic Oil and Gas Ltd. (TSXV: NOG) today
announced the Company's financial results from operations for its third
quarter and nine months ended September 30, 2007. All amounts referenced
herein are in Canadian dollars.

    Year-to-Date Results

    Revenue from natural gas and Coal Bed Methane ("CBM") sales for the
nine-month period (including liquids and transport revenue and interest
revenue) totaled $504,105, down slightly from the $520,717 reported for same
period in 2006.
    Cash, including term deposits and accounts receivable for the first nine
months of the year totaled $39,778 compared to $269,540 for the same period in
2006. In addition, net cash flow from operating activities (cash received from
operators minus cash paid to suppliers and for royalties) was down slightly
for the first nine months of 2007 to $252,144 compared to $265,846 for the
same period in 2006.
    Total assets as at September 30, 2007 were $4,428,198, up from the
$4,309,480 at the end of 2006.
    General and administrative expenses for the first three quarters of the
year totaled $117,101, virtually level with the $118,967 reported during the
same period in 2006. Overall expenses for the first three quarters of 2007
were up approximately $170,000 at $774,062 compared to the same period in 2006
at $606,064. This was due primarily to the significant increase in depletion
and amortization expenses from $194,138 to $385,130.
    The Company recorded a net loss before income taxes of $516,449 for the
first nine months of 2007, up from the loss of $328,990 over the same period a
year ago. However, this improves to a loss of $367,067 when the future income
tax recovery of $149,382 is applied.
    Average monthly production volume for the nine months ended September 30,
2007 was 46.16 BOEs(*)/day, and 42.61 BOEs(*)/day for the third quarter. The
Company received $6.2089/GJ as an average gas price during the first nine
months of the year.

    Quarterly Results

    Revenue for the three-month period ended September 30, 2007 totaled
$139,538 up approximately $6,000 over the Q3 2006 total of $133,500, but down
about $40,000 over last quarter's total of $175,429. The marginal decline in
quarter over quarter revenue totals this year was due to the continued slump
in natural gas prices, coupled with the fact that the Company's 15-12-38-25 W4
well in Joffre did not come onto production until early November.
    Cash, including term deposits and accounts receivable for the three
months ended September 30, 2007 totaled $29,902 compared to $66,578 for the
same period last year. In addition, net cash flow from operating activities
(cash received from operators minus cash paid to suppliers and for royalties)
was up for the quarter under review to $69,268 as compared to $61,577.
    G & A expenses were down for the quarter under review, over the
comparable period in 2006 - $38,077 this year versus $47,101 last year, while
overall expenses for the third quarter were up from those recorded in Q3 2006
at $232,813 compared to $167,565. This was due primarily to the increase in
depletion and amortization costs to $164,233 for the quarter, compared to
$60,164 in Q3 2006 and an increase in professional fees from $12,066 to
$29,445.
    During the quarter, the Company recorded a net loss before taxes of
$161,703 compared to a loss of $103,413 reported in Q3 2006; however this was
an improvement over the $239,056 net loss reported last quarter. Furthermore,
the quarter improves to a loss of $12,321 when the future income tax recovery
of $149,382 is applied.

    Quarterly Highlights

    One of the highlights of the third quarter came near the end of September
when the Company finalized its purchase of approximately 8,000 acres of
Petroleum & Natural Gas leases in the Peace River Arch and Lloydminster
regions of Alberta. These lands will provide Nordic with new core areas for
the Corporation and represent a strategic fit for its current production and
future drilling activity at Joffre, Alberta.
    In August, the Company announced that the field measurement results from
the flow test on the Corporation's 11th well in Joffre, Alberta, Canada showed
that the middle Belly River zone had gas rates of 18.5 10(3)m(3) at between
649.5 metres and 651 metres. Furthermore, the combined 23 10(3)M(3) for the
three intervals within the well that was tested, equated to 820 MCF/day. This
well is expected to come on production in early December.
    Also during the quarter under review, the Company closed a Private
Placement offering of 1 million Units of Nordic Oil and Gas at a price of
$0.20 per Unit for gross proceeds of $200,000 to certain funds in the
EnergyFields Group. Each Unit consisted of one Class A common share of the
Corporation issued as a "flow-through share" within the meaning of the Income
Tax Act (Canada) and one-half of a Class A common share purchase warrant. Each
Warrant entitles the holder thereof to purchase one regular Class A common
share of the Corporation at a price of $0.30 per share for a period of two
years from the date of issuance. In September, the Company announced the
closing of another private placement offering, this one totaling 752,500 units
at a price of $0.20 per Unit for gross proceeds of $150,500 to various
subscribers.

    Events Subsequent to the End of the Quarter

    Several major announcements have taken place subsequent to the end of the
third quarter. The most notable came in early November when the Company
announced it had discovered a series of oil seeps in its most northerly permit
in Township 40, Ranges 4 and 5 W2 Preeceville, Saskatchewan. Various samples
were sent to a laboratory in Calgary, and the analysis revealed the presence
of oil. All together, evidence of 29 seeps was found on the property, of which
three were very extensive. The oil seeps were discovered as a result of
hydrocarbon soil gas surveys undertaken by Petro-Find Geochem Ltd.
    In addition, the Company announced the closing of three Private Placement
financings, two in October and the other one during November. On October 1,
2007, Nordic closed a private placement offering of Units of the Corporation
at a price of $0.17 per Unit. The Corporation issued 600,000 Units to a member
of the FrontierAlt Group for aggregate gross proceeds of $102,000. Each Unit
consists of one Class A common share of the Corporation plus one-half of one
Class A common share purchase warrant. Each whole Warrant entitles the holder
thereof to purchase one Class A common share of the Corporation at a price of
$0.30 per share for a period of two years from the date of issuance. The
securities issued pursuant to the Offering are subject to a four-month holding
period, ending February 2, 2008.
    On October 24, the Company issued 1,375,000 units at a price of $0.20 per
Unit for gross proceeds of $275,000 to various subscribers. Each Unit
consisted of one Class A common share of the Corporation issued as a
"flow-through share" within the meaning of the Income Tax Act (Canada) and one
half of one Class A common share purchase warrant. Each whole Warrant entitles
the holder thereof to purchase one regular Class A common share of the
Corporation at a price of $0.30 for a period of two years from the date of
issuance.
    Finally, on November 20, the Company announced the second closing of its
previously announced private placement offering of units of the Corporation at
a price of $0.20 per Unit by issuing 3,600,000 Units for aggregate gross
proceeds of $720,000 to various subscribers. Each Unit consisted of one Class
A common share of the Corporation and one half of one Class A common share
purchase warrant. MAK Allen & Day Capital Partners was paid a finder's fee of
$30,000 and was issued 200,000 Warrants as partial compensation for their
services.
    Mr. Benson stated that the Company is very upbeat with respect to both
the remainder of 2007 and into 2008. "The fact that we intend to place our new
well in Joffre on production before the end of the year will set the tone for
what we feel will be a pivotal year in 2008 for Nordic Oil and Gas.
    "However, we are most excited about our recent findings in Preeceville.
It is our intention to move forward with applications for multiple well
licenses and start drilling as soon as possible. We have a large land base in
Preeceville, and when combined with the proprietary seismic that we have
already undertaken, along with the Geo-Chem samples and the current oil seeps
analysis, we are confident that the possibility exists for one or more pools
to be identified on our property."

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

    This news release contains certain statements that may be deemed
"forward-looking statements". All statements in this release, other than
statements of historical fact, that address events or developments that the
Corporation expects to occur, are forward looking statements. Forward looking
statements are statements that are not historical facts and are generally, but
not always, identified by the words "expects", "plans", "anticipates",
"believes", "intends", "estimates", "projects", "potential" and similar
expressions, or that events or conditions "will", "would", "may", "could" or
"should" occur. Although the Corporation believes the expectations expressed
in such forward-looking statements are based on reasonable assumptions, such
statements are not guarantees of future performance and actual results may
differ materially from those in forward looking statements. Factors that could
cause the actual results to differ materially from those in forward-looking
statements include market prices, exploration and drilling success, continued
availability of capital and financing and general economic, market or business
conditions. Investors are cautioned that any such statements are not
guarantees of future performance and actual results or developments may differ
materially from those projected in the forward-looking statements. Forward
looking statements are based on the beliefs, estimates and opinions of the
Corporation's management on the date the statements are made. The Corporation
undertakes no obligation to update these forward-looking statements in the
event that management's beliefs, estimates or opinions, or other factors,
should change.

    (*) The term BOEs may be misleading, particularly if used in isolation. A
    BOE conversion ratio of 6 Mcf: 1 barrel is based on an energy equivalency
    conversion method primarily applicable at the burner tip and does not
    represent a value equivalency at the wellhead.

    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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