Nordic Oil and Gas Announces Two New Private Placement Offerings

Funds to be Used to Drill New Test Well at Talbot lake + 7 New Wells at Lloydminster

WINNIPEG, Jan. 21 /CNW/ - Donald Benson, President of Nordic Oil and Gas Ltd. ("the Company" or "Nordic") announced today that the Company intends to undertake two new non-brokered private placement offerings ("The Offerings") . They will be comprised of up to 20,000,000 units at a price of $0.15 per Unit for gross proceeds of $3,000,000 to various subscribers; and, 2.0 million units at a price of $0.12 per Unit for gross proceeds of $240,000.

Each Unit priced at $0.15 will consist of one Class A common share of the Company 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 ("a Warrant"). Each whole Warrant would entitle the holder thereof to purchase one regular Class A common share of the Company at a price of $0.18 for a period of 18 months from the date of issuance.

Each Unit priced at $0.12 will consist of one Class A common share of the Company plus one-half of one Class A common share purchase Warrant. Each whole Warrant would entitle the holder thereof to purchase one Class A common share of the Company at a price of $0.14 per share for a period of two years from the date of issuance.

The securities issued pursuant to both Offerings are subject to a four-month holding period from the date of closing. The Company anticipates multiple closings in the coming weeks.

Certain finders are expected to assist the Company by introducing potential subscriber(s) to the new Offering and, subject to compliance with applicable legislation, will be entitled to receive fees equal to 8% of the purchase price of the new Units sold pursuant to the new Offering, as well as warrants ("Finder's Warrants") equal to 8% of the number of new Units sold pursuant to the new Offering. Each new Finder's Warrant shall entitle the holder thereof to purchase one regular Class A common share of the Company at a price of $0.18 and $0.14 respectively for a period of 18 months from the date of issuance.

All terms of the new Offerings are subject to the approval of the TSX Venture Exchange.

"A portion of the funds generated from these two Offerings will be used to drill a new deep test well - 1,500 metres - on our Talbot Lake property, with the remainder of the money used to drill an additional seven new heavy wells at Lloydminster," Mr. Benson. "This would pave the way for us to begin our drilling program in Talbot Lake and, will bring to 25 the total number of wells at Lloydminster."

With regard to the seven wells drilled at Lloydminster prior to the end of 2009, the first two that were placed on production, "are producing at levels consistent with our initial projections," Mr. Benson stated. The remaining five wells will be placed on production shortly.

"We continue to anticipate that our production levels will be between 200 and 250 barrels of oil per day** when all wells are on production*," he added.

Also at Lloydminster, Mr. Benson noted that work continues in preparation for drilling a new horizontal well. "Interpretation of the 3-D seismic will be completed in the first quarter and will assist us in determining the first of what will be multiple locations for new horizontal wells to be drilled in the second quarter of this 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.

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.

* The projections in this new release are consistent with the Company's current Reserves and Engineering Report prepared by Chapman Petroleum Engineering Ltd.

** 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.

This press release contains forward-looking statements with respect to Nordic Oil and Gas Ltd. properties, 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, including that the estimates and projections regarding the properties are realized. 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.

%SEDAR: 00015188E

SOURCE Nordic Oil & Gas Ltd.

For further information: For further information: Don Bain, Corporate Secretary, Nordic Oil and Gas Ltd., Tel. (204) 832-7717, Fax. (204) 943-1829, E-mail: donbain1@mts.net

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