/THIS PRESS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR
DISTRIBUTION TO U.S. NEWS WIRE SERVICES/
First close brings in nearly $800,000 - almost two-thirds of overall
WINNIPEG, Aug. 18 /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
6,388,500 flow-through units (the "Units") at a price of $0.125 per Unit for
gross proceeds of $798,562.50 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 $0.13 for a period of one year
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 a maximum
of 8% 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 a
maximum of 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
$0.13 for a period of 12 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 by the end of
Commenting on today's closing, Mr. Benson stated: "With market conditions
continuing to be uncertain, we are very pleased that the initial closing
represents 65% of our overall goal. There are very few companies raising money
these days so in our view, this speaks of the confidence shareholders have in
Nordic Oil and Gas. We look forward to bringing in additional funds in the
remaining days of August and hitting our goal of $1,250,000."
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
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.
For further information:
For further information: Donald Benson, Chairman & CEO, Nordic Oil and
Gas Ltd., Tel: (204) 956-5042, Fax: (204) 897-7154, E-mail: email@example.com;
Don Bain, Corporate Secretary, Nordic Oil & Gas Ltd., Tel. (204) 229-7751,
Fax: (204) 943-1829, E-mail: firstname.lastname@example.org, www.nordicoilandgas.com