/THIS PRESS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR
DISTRIBUTION TO U.S. NEWS WIRE SERVICES/
WINNIPEG, Feb. 22 /CNW/ - Donald Benson, Chairman and Chief Executive
Officer of Nordic Oil and Gas Ltd. (the "Corporation"), today announced the
first closing of the Corporation's previously announced private placement
offering of flow-through units (the "Offering"). The Corporation issued
2,416,094 flow-through units (the "Units") at a price of $0.425 per Unit for
gross proceeds of $1,026,840 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) (a "Flow-through Share") and
one half of one Class A common share purchase warrant (a "Warrant"). Each
whole Warrant entitles the holder thereof to purchase one regular Class A
common share of the Corporation at a price of $0.65 for a period of two years
from the date of issuance. The Flow-through Shares and Warrants will be
restricted from transfer for a period of four months and a day from the date
hereof in accordance with applicable securities laws and the policies of the
TSX Venture Exchange.
Certain finders assisted the Corporation by introducing potential
subscribers for the Offering and each finder received fees equal to 6% of the
purchase price of the Units sold to subscribers for the Offering introduced by
such finder as well as warrants ("Finder's Warrants") equal to 8% of the
number of Units sold to subscribers for the Offering introduced by such
finder. Each Finder's Warrant entitles the holder thereof to purchase one
regular Class A common share of the Corporation at a price of $0.60 for a
period of 24 months from the date of issuance.
The closing of the Offering is subject to the final approval of the TSX
Venture Exchange. A second closing is expected to take place in early March
In other news, Mr. Benson also noted today that a recent article in the
Regina Leader-Post stated the surge of drilling activity in the Preeceville,
Saskatchewan area, is due largely to the work that Nordic Oil and Gas has been
undertaking in the region. "As a result of our exploration work, there are now
many companies exploring in the area," Mr. Benson said.
Ed Dancsok, Director of the Geology and Petroleum lands branch of
Saskatchewan Energy and Resources, is quoted in the article as saying, "the
Preeceville area has seen about 50 wells drilled in the last three or four
years." He went on to say, "Nordic's exploratory work has led to an influx of
about five to 10 companies into the Preeceville area, including PanTerra
Resource Corp., Vermillion Energy Trust, Propel Energy Corp. and even Hunt Oil
Canada, the subsidiary of giant Hunt Oil of Dallas, Texas, which has drilled a
half dozen wells."
"We're hopefully going to make a huge discovery here," Mr. Benson said.
"We believe it's going to be light crude. We have acquired a tremendous amount
of land in the region, consisting of about 112,000 acres and we expect this
will be a very substantial new area for Saskatchewan, and we'll be right in
the heart of it."
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.
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,
The TSX Venture Exchange has not reviewed nor accepts responsibility for
the adequacy or accuracy of the contents of this News Release.
For further information:
For further information: Donald Benson, Chairman & CEO, Nordic Oil & Gas
Ltd., Tel: (204) 956-5042, Fax: (204) 897-7154, e-mail:firstname.lastname@example.org,