Nordic Oil and Gas Ltd. Announces Creation of Nordic Oil Royalty Trust


WINNIPEG, Jan. 11 /CNW/ - Mr. Donald Benson, Chairman and Chief Executive Officer of Nordic Oil and Gas Ltd. (the "Corporation"), today announced the intention of the Corporation to create an oil royalty trust named "Nordic Oil Royalty Trust" (the "Nordic Trust"). The Nordic Trust is being created to acquire a gross overriding royalty (the "Royalty") on oil and gas production on certain properties of the Corporation located in or around Lloydminster, Alberta. (the "Properties") from the Corporation. There are currently eight wells on the Properties and it is anticipated that an additional seven wells will be put on production in the near future.

In order to fund the acquisition of the Royalty, the Nordic Trust will undertake a private placement offering up to 40 trust units of the Nordic Trust ("Units") at a price of $25,000 per Unit for gross proceeds of up to $1,000,000 (the "Offering"). The proceeds of the Offering will be used by the Nordic Trust to acquire the Royalty from the Corporation. Each Unit will entitle the holder thereof to earn a 0.125% royalty interest in all oil and gas production on the Properties. In the event that all 40 Units are sold pursuant to the Offering, the Nordic Trust will acquire a 5% Royalty on the Properties from the Corporation. All expenses of the Offering will be paid by the Corporation.

It is anticipated that the Corporation will act as manager of the Nordic Trust.

Certain persons will assist the Corporation and the Nordic Trust by introducing potential subscribers for the Offering and will be paid a finder's fee of 4% of the total subscription proceeds received from subscribers introduced by each particular person. No broker warrants will be issued in connection with the Offering.

The proceeds of this Offering will be used for general corporate and working capital purposes by the Corporation.

All the terms of the Royalty, the creation of the Nordic Trust and the Offering are subject to the 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.

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.

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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:,

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