Nordic Oil and Gas Files 2010 Reserves and Engineering Report

WINNIPEG, April 29 /CNW/ - Donald Benson, Chairman and Chief Executive Officer of Nordic Oil and Gas Ltd. ("Nordic" or the "Company"), today announced that the Company has filed its annual statement of reserves data and other oil and gas information for the year ended December 31, 2010 (NI 51-101 F1, F2 and F3) on SEDAR. The independent Reserves and Economic Evaluation of Oil and Gas Properties was prepared by Chapman Petroleum Engineering Ltd. ("Chapman") in accordance with National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI 51-101").

The following tables summarize the oil and natural gas reserves and the value of future net revenue of the Company as evaluated by Chapman as at December 31, 2010 in its report dated March 24, 2011 (the "Chapman Report"), and summarized in the Company's forthcoming NI 51-101 F1 to be filed on SEDAR. All evaluations of future revenue are after the deduction of future income tax expenses, unless otherwise noted in the tables, royalties, development costs, production costs and well abandonment costs but before consideration of indirect costs such as administrative, overhead and other miscellaneous expenses.

The estimated future net revenue contained in the following tables does not necessarily represent the fair market value of the Company's reserves. There is no assurance that the forecast price and cost assumptions contained in the Chapman Report will be attained and variances could be material. Other assumptions and qualifications relating to costs and other matters are included in the Chapman Report. The recovery and reserves estimates on the Company's properties described herein are estimates only. The actual reserves on the Company's properties may be greater or less than those calculated.

NOTE: During the year under review, the Company sold a 66 2/3% interest in its Lloydminster holdings. Therefore, the summary prepared in the Chapman Report for Nordic's heavy oil reserves is based on Nordic having a 33 1/3% ownership interest in the Company's Lloydminster property, as opposed to a 100% ownership position noted in the 2009 reserves report.



SUMMARY OF OIL AND GAS RESERVES BASED ON FORECAST PRICES AND COSTS - AS AT 12/31/2010
        Company Reserves(1)
         Heavy
Oil 
    Natural
Gas(9)
  Coal Bed
Methane
  Natural
 Gas Liquids
        Gross     Net    Gross   Net    Gross     Net    Gross     Net 
Reserves Category   MSTB   MSTB   MMscf   MMscf   MMscf   MMscf   Mbbl   Mbbl
PROVED                                  
  Developed Producing(2)(6)   68   58   152   132       367       332   0   0
  Developed Non-Producing(2)(7)   10   8   388   335   0         0   0   0
  Undeveloped(2)(8)   47   38   0   0       273       267   0   0
TOTAL PROVED(2)   125   104      540   467   639   598   0   0
TOTAL PROBABLE(3)   106   85   1,238   1,105   614   577   3   3
TOTAL PROVED + PROBABLE(2)(3)   230   188   1,779   1,572   1,254   1,176   3   3
TOTAL POSSIBLE(4)   -   -   -   -   -   -   -   -
TOTAL PROVED + PROBABLE + POSSIBLE   230   188   1,779   1,572   1,254   1,176   3   3

Note: (1) Includes associated, non-associated and solution gas where applicable.




SUMMARY OF NET PRESENT VALUES

  Net Present Values of Future Net Revenue
    Before Income Tax   After Income Tax
    Discounted at   Discounted at
    0%   5%/yr.   10%/yr.   15%/yr.   20%/yr.   0%/yr   5%/yr.   10%/yr.   15%/yr.   20%/yr.
Reserves Category   $M   $M   $M   $M   $M   $M   $M   $M   $M   $M
                                         
PROVED                                        
Developed Producing(2)(6)   3,697   3,070   2,635   2,319   2,080   3,697   3,070   2,635   2,319   2,081
                                         
Developed Non-Producing(2)(7)   1,694   1,331   1,076     891     752   1,694   1,331   1,076     891     752
Undeveloped(2)(8)   1,571   1,208     928     708     532   1,571   1,208     928   708   532
TOTAL PROVED(2)   6,962   5,609   4,639   3,918   3,365   6,962   5,609   4,639   3,918   3,365
TOTAL PROBABLE(3)   9,002   6,002   4,241   3,104   2,315   7,144   4,780   3,369   2,448   1,802
TOTAL PROVED + PROBABLE(2)(3)   15,964   11,611   8,880   7,022   5,680   14,105   10,389   8,008   6,366   5,167
TOTAL POSSIBLE(4)   -   -   -   -   -   -   -   -   -   -
TOTAL PROVED + PROBABLE + POSSIBLE   15,964   11,611   8,880   7,022   5,680   14,105   10,389   4,639   6,366   5,167




OIL AND GAS RESERVES AND NET PRESENT VALUES BY PRODUCTION GROUP
BASED ON FORECAST PRICES AND COSTS
             
    Reserves   Net Present   Unit Values
    Oil   Gas(9)   NGL   Value (BIT)   @ 10%/yr
Reserve Group by Category   Gross   Net   Gross   Net   Gross   Net   10%    
    MSTB   MSTB   MMscf   MMscf   Mbbl   Mbbl   M$    
Heavy Oil                                
Proved                                
   Developed Producing   68   58   -   -   -   -   2,001   34.58
   Developed Non-Producing   10     8   -   -   -   -     271   34.59
   Undeveloped   47   38   -   -   -   -     677   17.81
Total Proved   125   104   -   -   -   -   2,949   28.43
Probable   106   85   -   -   -   -   2,126   24.94
Proved Plus Probable   230   188   -   -   -   -   5,075   27.00
Possible   -   -   -   -   -   -   -   -
Proved + Probable + Possible   230   188   -   -   -   -   5,075   27.00
                                 
Assoc & Non-Assoc Gas                                
Proved                                
   Developed Producing   -   -   152   132   0   0   116   0.88
   Developed Non-Producing   -   -   388   335   0   0   806   2.41
   Undeveloped   -   -   0   0   0   0   0   0
Total Proved   -   -   540   467   0   0     922   1.98
Probable   -   -   1,239   1,105   3   3   1,464   1.33
Proved Plus Probable   -   -   1,799   1,572   3   3   2,386   1.52
Possible   -   -   -   -   -   -   -   -
Proved + Probable + Possible   -   -   1,799   1,572   3   3   2,386   1.52
Coal Bed Methane                                
Proved                                
   Developed Producing   -   -   367   332   0   0   517   1.56
   Developed Non-Producing   -   -   0   0     0   0     NA
   Undeveloped   -   -        273   267   0   0   251   NA
Total Proved   -   -   639   598   0   0   768   1.28
Probable   -   -   615   578   0   0   652   1.13
Proved Plus Probable   -   -   1,254   1,176   0   0       1,419   1.21

Notes:

  1. "Gross Reserves" are the Company's working interest (operating or non-operating) share before deducting of royalties and without including any royalty interests of the Company.  "Net Reserves" are the Company's working interest (operating or non-operating) share after deduction of royalty obligations, plus the Company's royalty interests in reserves.
  2. "Proved" reserves are those reserves that can be estimated with a high degree of certainty to be recoverable.  It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves.
  3. "Probable" reserves are those additional reserves that are less certain to be recovered than proved reserves.  It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated proved plus probable reserves.
  4. "Possible" reserves are those additional reserves that are less certain to be recovered than probable reserves.  It is unlikely that the actual remaining quantities recovered will exceed the sum of the estimated proved plus probable plus possible reserves.
  5. "Developed" reserves are those reserves that are expected to be recovered from existing wells and installed facilities or, if facilities have not been installed, that would involve a low expenditure (e.g. when compared to the cost of drilling a well) to put the reserves on production.
  6. "Developed Producing" reserves are those reserves that are expected to be recovered from completion intervals open at the time of the estimate.  These reserves may be currently producing or, if shut-in, they must have previously been on production, and the date of resumption of production must be known with reasonable certainty.
  7. "Developed Non-Producing" reserves are those reserves that either have not been on production, or have previously been on production, but are shut in, and the date of resumption of production is unknown.
  8. "Undeveloped" reserves are those reserves expected to be recovered from know accumulations where a significant expenditure (for example, when compared to the cost of drilling a well) is required to render them capable of production.  They must fully meet the requirements of the reserves classification (proved, probable, possible) to which they are assigned.
  9. Includes associated, non-associated and solution gas where applicable.

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.

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. 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.

SOURCE Nordic Oil

For further information:

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

Twitter: www.twitter.com/Nordic_Oil

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