/THIS PRESS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES/
WINNIPEG, May 25 /CNW/ - Donald Benson, Chairman and Chief Executive Officer of Nordic Oil and Gas Ltd. (the "Corporation"), today announced the closing on May 21, 2010 of the Corporation's private placement offering (the "Offering") of royalty interests ("Royalty Interests"). The Corporation issued $600,000 principal amount of Royalty Interests to a number of subscribers resident in various provinces of Canada. Each $25,000 principal amount of Royalty Interests entitles the holder thereof to a 0.125% gross overriding royalty (the "Royalty") on certain oil and gas properties held by the Corporation in the Lloydminster, Alberta area (the "Properties"). Accordingly, the Corporation has sold an aggregate 3% Royalty on the Properties to subscribers for Royalty Interests. The Royalty Interests cannot be sold by subscribers for a period of four months and a day in accordance with applicable securities laws.
Certain finders assisted the Corporation by introducing potential subscribers for the Offering and each finder received fees equal to a maximum of 8% of the purchase price of the Royalty Interests sold to subscribers for the Offering introduced by such finder.
"This Offering will significantly enhance the Corporation's financial position, and do so without any dilution of shareholder value," Mr. Benson noted. "It will allow us to move forward on a number of fronts, including now being able to equip and bring on to production the five new wells that were drilled in Lloydminster at the end of 2009.
"Over the past few weeks we have taken steps to strengthen our presence in Lloydminster, and with our new partners in the region, Western Plains Petroleum, we are now in position to make significant inroads in the Lloydminster area," he added.
The closing of the Offering is subject to the final approval of the TSX Venture Exchange.
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. 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.
SOURCE Nordic Oil & Gas Ltd.
For further information: For further information: Don Bain, Corporate Secretary, Nordic Oil and Gas Ltd., Tel. (204) 229-7751, Fax: (204) 943-1829, E-mail: email@example.com, www.nordicoilandgas.com