Significant Increase In Production Fuels 213% Growth In Revenue For Third Quarter 2008

Nordic Oil and Gas Ltd. (TSXV: NOG) today announced the Company's financial results from operations for its third quarter and nine months ended September 30, 2008. All amounts referenced herein are in Canadian dollars.

Financial Highlights
--------------------
- Increased average production in Q3 by 63% to approximately 130 BOE/d*
- Increased revenue in Q3 by 213% to $437,694 compared to similar period a year ago; highest quarterly revenue total since Q4 2004

    -   Increased revenue for nine months by 91% to $962,418 versus $504,105
        last year
    -   Increased quarterly net cash flow from operations in Q3 by 130% to
        $163,894 compared to Q3 2007
    -   Increased net cash flow from operations for nine months by 44% to
        $372,383 as compared to last year
    -   First production of oil from Lloydminster wells

    9-Months Results
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    >>

Revenue from oil, natural gas and Coal Bed Methane ("CBM") sales for the nine-month period (including liquids and transport revenue and interest revenue) totalled $962,418 up 91% from the $504,105 reported for same period in 2007. The increase for the period was due to a sharp rise in oil and gas revenue to $870,128 as compared to $474,686 a year ago. The revenue increase is a direct result of the start of production from the Company's new oil wells in Lloydminster, along with an increase in interest income to $64,016 as compared to $5,469 in 2007.

Net cash flow from operating activities (cash received from operators minus cash paid to suppliers and for royalties) was up $114,770 for the first nine months of 2008 to $372,383 as compared to $257,613 during the same period a year ago. This was due to the increase in revenue to date. Cash, short term investments, accounts receivable, deposits and deferred costs for the first nine months of the year totalled $4,046,553, an increase of more than $877,000 over the $3,169,248 at the end of December, 2007 and up some $2,439,000 over the first nine months of 2007.

Total assets as at September 30, 2008 were $14,107,265 up 82% from the $7,713,059 as at December 31, 2007.

General and administrative expenses for the first nine months of 2008 totalled $414,099, up from the $117,101 reported for the same period in 2007. Total expenses for the period (excluding production costs) were $1,438,895 compared to $774,063 for the first nine months of 2007.

The Company recorded a net loss of $581,525 for the first nine months of 2008, up from the $367,068 during the same period a year ago.

Revenue for the three-month period ended September 30, 2008 totalled $437,694, the highest three-month total since Q4 2004. This represents an increase of approximately $62,000 over the Q2 2008 total of $375,622 and an increase of about $300,000 over the 2007 Q3 total of $139,537. The increase in quarter over quarter revenue totals was due mainly to new production from the Company's oil wells at Lloydminster.

Net cash flow from operating activities (cash received from operators minus cash paid to suppliers and for royalties) totalled $163,894 for the quarter, as compared to $71,110 during the same period a year ago.

General and administrative expenses for the three months under review totalled $196,019, up from the $38,077 in the same period in 2007. Overall expenses for the third quarter under review totalled $509,371 up from the $232,814 reported in Q3 2007.

For the quarter, the Company recorded a net loss of $309,292, as opposed to the $272,233 loss reported in Q2 2008 and the $12,322 net loss reported in Q3 2007; the Q3 2008 loss was due primarily to the increase in the production costs associated with the new wells along with higher G & A expenses.

Average production volume for gas for the three months ended September 30, 2008 was 11.07 10(3)m(3)/day or 406.42 GJ/day, as opposed to 11.00 10(3)m(3)/day, or 404.14 GJ/day during the second quarter this year. This equates to approximately 82 BOE/d. The Company received $7.2183/GJ as an average gas price during the third quarter of 2008 compared to $9.6846/GJ for the second quarter.

During the latter part of August and throughout the month of September, the Company produced 1,644 barrels of oil from its Lloydminster operations for an average daily production of nearly 51 BOPD. Several of the wells were on production for only a few days during this period. Average price was $76.74 per barrel.

Drilling of the Company's first two oil wells commenced in Lloydminster in July. These two wells, along with two existing well bores, were placed on production in late August.

Two additional well bores at Lloydminster were subsequently placed on production in September, bringing the total to six the number of new oil wells on production in the area.

At Joffre, Alberta, the Company licensed, drilled and cased a new Belly River well which should come on production in the fourth quarter. Also at Joffre, the Company obtained another surface lease and expects to drill a new well during the fourth quarter.

At Preeceville, Saskatchewan, the Company completed the cementing of the existing perforations at its 14-14 well, which was initially drilled to 400 metres in 2005 and began the process of re-entering the well to the basement.

Mr. Benson stated that the Company is upbeat about the remainder of 2008 despite the current economic conditions within the marketplace: "When looking at our revenue and production totals, the quarter under review was clearly our best in some time. The start of shipping oil from the first of our new wells at Lloydminster was the main factor in our stronger revenue and production totals for the third quarter and will be a major reason for continued growth in the fourth quarter beyond.

"We see this trend being maintained throughout the fourth quarter, given the fact that we have identified three additional drilling locations at Lloydminster," he added. "Surveying consent has been granted and we are presently waiting to receive our surface leases. Furthermore, we have also identified more than 60 abandoned wells on our property of which 15 are deemed good candidates for re-entry. Within this group, we are presently acquiring two wells from the Crown at no cost to Nordic; these wells last produced at a combined rate of 200 barrels of oil per day."

Continuing, Mr. Benson also stated, "At Joffre, the Company's new Belly River well is expected to be put on production in the coming weeks. Furthermore, the Company has received its license to drill a new Viking oil well in search of sweet, light crude in Joffre. While gas is more extensive in the region, oil is also prevalent in the area. Drilling is expected to commence during Q4.

"When all of these additional wells are on full production, both our production volumes and revenue totals will be significantly enhanced," Mr. Benson added.

Given the above, Nordic has an exit target of 280 BOE/d by the end of the year (with near record revenue totals), ramping up to approximately 400 BOE during the first quarter of 2009.

At Preeceville, Saskatchewan, the analysis of the open hole logs on Nordic's 14-14 well that was re-entered in September has led the Company to now undertake more sophisticated case hole logs.

"We believe oil is present in the region," Mr. Benson stated. "We saw extensive staining on the cuttings and the rock samples. The data is telling us that we now need to undertake some 3-D seismic in the area, which should commence in December."

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. Nordic is one of the "2008 TSX Venture 50" companies, a ranking of the top 10 public venture capital companies in five industry sectors listed on the TSX Venture Exchange.

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, should change.

%SEDAR: 00015188E

SOURCE: Nordic Oil & Gas Ltd.

Donald Benson, Chairman & CEO, Nordic Oil and Gas Ltd., Tel. (204) 956-5042, Fax. (204) 897-7154, E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.; Don Bain, Corporate Secretary, Nordic Oil and Gas Ltd., Tel. (204) 943-1810, Fax. (204) 943-1829, E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.; www.nordicoilandgas.com