Nordics First Two Wells at Lloydminster to Come on Production Shortly

Nordics First Two Wells at Lloydminster to Come on Production Shortly

Tuesday, August 12th 2008

Donald Benson, Chairman and Chief Executive Officer of Nordic Oil and Gas Ltd., announced that the perforating and testing have been completed at the Company’s first two wells at Lloydminster, Alberta and that the results indicate the wells will produce between 60 and 75 barrels of oil per day (bbls/d) combined.

The wells are currently being fitted with the required production equipment and it is expected that both will be on production in the coming days. Furthermore, testing will now begin on the third of the three Lloydminster wells drilled recently, along with the four well bores that the Company acquired earlier this year.

“When these two new wells come on production, we will nearly double the Company’s overall production totals from approximately 85 barrels of oil equivalent per day (boes/d(x)) to between 145 and 160 boes/d,” Mr. Benson stated. “This will obviously have a positive impact on our revenue stream for the balance of the year, and will be enhanced even further once the third Lloydminster well and the four well bores are evaluated.”

At Joffre, Alberta, where the Company presently has its six wells on production, “we are currently in the process of licensing a new gas well, which, we anticipate will be drilled in the next few weeks,” Mr. Benson added.

At Preecevile, Saskatchewan, the Company has completed the cementing of the existing perforations at its 14-14 well, which was initially drilled to 400 metres in 2005. The Company is now in the process of applying for a re-entry license to the basement.

“This location was originally identified back in 2005 as the best possible candidate for drilling based upon the analysis of the seismic data,” said Brahm Silverstone, Nordic’s consulting geo-physicist. “The seismic data indicated that this location is on a seismic high with four-way closure.”

Upon receiving the re-entry license, “we will arrange for a drilling rig to be deployed to the site to commence drilling this well to the basement,” said Mr. Benson.

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.

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