NORDIC OIL AND GAS ANNOUNCES FINANCIAL RESULTS FOR YEAR ENDED DECEMBER 31, 2010

WINNIPEG, April 29 /CNW/ - Nordic Oil and Gas Ltd. (TSXV: NOG), today announced the Company's financial results from operations for its fourth quarter and year ended December 31, 2010. All amounts referenced herein are in Canadian dollars.

Financial Results
Revenue from oil and natural gas sales (including liquids and transport revenue) during the fourth quarter of 2010 totalled $285,954 up from the $259,711 reported in Q4 2009. When taking into account any interest earned, the Q4 revenue for 2010 totalled $285,594 versus $256,041 for the same period in 2009.

For the 12 months ended December 31, 2010, oil and gas, liquids and transport revenue was down to $806,064 from the $1,259,969 reported at the end of December 2009, a decrease of 36%.

The revenue decrease for the year was due to several factors: the Company's revenue for most of the second half of the year from its Lloydminster wells was based on a 33 1/3% ownership position, as opposed to the 100% ownership position ion 2009; the Company's heavy oil wells at Lloydminster were shut-in during February, March and much of April, thereby significantly depleting revenue; and, due to continuing low gas prices, production was also shut-in for a period of time in 2010 at the Company's natural gas wells at Joffre. The gas wells did not resume production until November 2010.

Total assets, including cash, short-term investments, accounts receivable, property and equipment and other assets (deposits), at the end of the year under review totalled $13,292,811, down approximately $5 million from the 2009 year end total of $17,357,549. The primary reason for the drop in assets was a result of the sale of property and equipment related to the Company's disposition of a 66 2/3% interest in its Lloydminster property. As such, the value of the Company's property and equipment decreased from $16,168,787 at the end of 2009 to $11,847,967 at the end of 2010.

Overall expenses for the year ended December 31, 2010 totalled $2,465,138, down approximately $600,000 from the 2009 total of $3,079,810. The primary reason for the drop in expenses was the decrease in operating costs to $681,700 in 2010 versus $1,293,414 in the previous year. This is a result of more efficient operating procedures at the Lloydminster wells. General and administrative costs were on par with last year: $1,037,315 in 2010 against $1,028,860 in 2009.

For the fourth quarter of 2010, expenses totalled $626,683 as opposed to $1,162,290 in Q4 2009. Again, the main reason for the sharp drop in expenses was the reduction in operating costs to $173,542 during the fourth quarter of 2010 from $374,064 in the same period a year ago, and the drop in general & administrative costs from $503,528 last year to just $229,540 in the fourth quarter of 2010.

Earnings for the year before interest, taxes, depreciation and amortization (EBITDA) were negative ($3,504,259) compared to ($1,225,472) in 2009. The increase resulted from the aforementioned loss on the sale of assets of ($2,289,101).

The net loss for the three months ended December 31, 2010 before income taxes was ($1,171,824), compared to a loss of ($875,188) recorded during the same period a year ago. For the full year under review, the net loss was $3,061,719 up approximately $1.8 million from the $1,230,218 in 2009. The increase in the 2010 loss can largely be attributed to the drop in the revenue by approximately $450,000 and the previously mentioned $2,289,101 loss on the sale of the 66 2/3% interest in the Company's Lloydminster assets.

Production Comparisons
Average production volume for gas for the year ended December 31, 2010 was 4.02 10³m³/day or 154.72 GJ/day, compared to 6.33 10³m³/day or 224.38 GJ/day in 2009. This equates to approximately 25 BOE/d in 2010, versus 40 BOE/d last year. The Company received $3.82/GJ as a weighted average gas price during the year under review compared to $3.93/GJ last year. During most of 2010, the Company shut-in its natural gas wells at Joffre due to continued low prices for gas. The wells were subsequently placed back on production in November.

Average production volume for gas for the three months ended December 31, 2010 was 5.30 10³m³/day or 204.14 GJ/day compared to 2.84/10³m³/day or 143.52 GJ/day during the fourth quarter last year. This year's total equates to approximately 33 BOE/d for the quarter versus 18 BOE/day for the same period in 2009. The increase in production from the Company's wells at Joffre in the fourth quarter is due to the fact that three new CBM wells were placed on production during this period, as were two natural gas wells (6-20 and 3-18 wells), both of which came back on production in late November.

The Company received $3.82/GJ as a weighted average gas price during the fourth quarter of 2010 compared to $3.64/GJ for the fourth quarter last year.

Average daily heavy oil production for the year ended December 31, 2010 was approximately 37 BOPD, with an average price received of $64.53 per barrel. For the fourth quarter of 2010, average daily heavy oil production was approximately 35 BOPD, with an average price received of $65.19 per barrel. This compares to approximately 53 barrels of oil produced per day in 2009 and an average net price per barrel of $62.63. Oil production was impacted due to the fact that the heavy oil wells at Lloydminster were also shut-in for a period of time early in the year; in addition, the Company's production was recorded on the basis of a 33 1/3% ownership at Lloydminster for most of the second half of the year.

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. Nordic was one of the "2008 TSX Venture 50" companies, a ranking of the top 10 public venture capital companies in five industry sectors listed on the TSX Venture Exchange.

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. 

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.

SOURCE Nordic Oil

For further information:

Don Bain
Corporate Secretary
Nordic Oil and Gas Ltd.
Tel. 204-943-1810
Fax. 204-943-1829
E-mail: donbain1@mts.net

Twitter: www.twitter.com/Nordic_Oil

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