August 29, 2005 Newsrelease

August 29, 2005

Nordic Oil and Gas Announces First Half Results for 2005

WINNIPEG, MB. (AUGUST 29, 2005) Nordic Oil and Gas Ltd. (TSXV: NOG) today announced the Company's financial results from operations for its second quarter and six-months ended June 30, 2005. All amounts referenced herein are in Canadian dollars.

Revenue for the first six months of 2005 totaled $705,786 down from the $844,263 reported for the same period in 2004. This year's total includes $628,821 in oil and gas revenue, compared to $729,766 during the first half of 2004. Total assets as at June 30, 2005 were $3,077,504 up almost $500,000 from the $2,519,755 as at the same date in 2004. The primary reason for the growth in assets to date this year is the increase in Term Deposits to $500,321 from $200,321 a year ago and the increase in accounts receivable to $388,382 versus $261,268 for the same period in 2004. Cash flow before depletion and amortization expenses and stock option expenses totals $227,857 for the first six months of 2005.

"Our cash and cash equivalents remain strong as we continue through the second half of the year and move forward with our exploration initiatives," stated Donald Benson, Nordic's Chairman and CEO. "It should also be noted that we would have recorded a net income for the first half had it not been for the re-stating and adjustments that had to be made to the depletion and amortization expense."

The second quarter of 2005 was highlighted by the following key announcements:

Nordic's Coal Bed Methane (CBM) well in Joffre on section 5-20-38-24 W4 that was drilled and cased by Trident Exploration Corp. of Calgary in late May received a nitrogen frac (stimulation) and has been perforated. Nordic expects to tie-in the well in the next few weeks at which time it will be in production and will result in new revenue for the Company.

AJM Petroleum Consultants, a reservoir engineering company from Calgary, was hired to evaluate the potential of Nordic's Coal Bed Methane interests in Joffre. The Report suggests that Nordic's possible recoverable Coal Bed Methane reserves on its Joffre property exceeds 1 bcf. Once the first CBM well is on production, the Company may obtain a new Report reflecting its proven, probable and possible CBM reserves on its Joffre property.

Analysis of the 37 kilometres of 2-D seismic shot recently at Preeceville, Saskatchewan was completed and the seismic data indicates that there are up to 80 potential sites for drilling on the Company's 110,225 net acres of land, many of them deep exploratory gas and oil targets. Gas and oil hydrocarbon potential is seen in at least 10 zones from the second white specs to Winnipegosis Sand some with aerial extent in the order of 2 square miles. The Company anticipates that it will drill a well in the region in the coming months to prove the existence of gas and/or oil. The well will be drilled to the basement.

Looking ahead to the remainder of 2005, Mr. Benson stated that the Company is extremely optimistic and excited about the initiatives it has planned beginning in September.

The Company will be re-entering its 102-3-24-38-25 W4 well and will be testing at the Basel Belly River zone. During initial drilling of the well an error occurred whereby excess cement remained in the well bore. The Company is arranging for a service rig to drill out the cement allowing for the logging to determine the interval of the Basel Belly River. Previous mapping indicates a potential pay zone of 1.5 metres.

"Given the success of the 5-20-38-24 W4 well, Nordic will be testing another CBM well over the course of the next month or two," he said. "Trident Exploration has shown considerable interest in working with us on the drilling of a second CBM well in the area. We remain very high about the potential for Coal Bed Methane on our property in Joffre, and look forward to working with Trident on this and other projects throughout the remainder of the year.

"The east-central region of Saskatchewan has become one of Western Canada's 'hottest areas' for the exploration and development of natural gas, and we are very excited about our opportunities there," Mr. Benson added. "Analysis of the recent seismic that was shot in the region identifies up to 80 exploration and development drillable locations - many deep exploratory gas and oil targets, which reinforces our optimism about the potential for both shallow and deeper gas plays in this region. This is further strengthened by the continuing surge in the price of Natural Gas, which has been hovering around the $10 mark throughout the second half of August."

In other news, Nordic also announced that the preliminary agreement that it had with the Beaver First Nation of High Level, Alberta, for exploration and development of oil and gas resources on land owned by the Beaver First Nation has been cancelled.

Nordic Oil and Gas is a junior oil and gas exploration company, which is listed on the TSX Venture Exchange and trades under the symbol NOG.

For additional information, contact:

Donald Benson
Chairman & CEO
Nordic Oil & Gas Ltd.
Tel: 204-956-5042
Fax: 204-897-7154
E-mail: dbenson57@shaw.ca

Don Bain
Director, Communications & Investor Relations
Nordic Oil & Gas Ltd.
Tel: 204-229-7751
Fax: 204-334-3764
E-mail: donbain@mts.net