Mr. Donald Benson reports

NORDIC OIL AND GAS ANNOUNCES 2014 Q2 AND SIX MONTHS FINANCIAL RESULTS

Nordic Oil & Gas Ltd. has released the company's financial results from operations for its second quarter and six months ended June 30, 2014. (All amounts referenced herein are in Canadian dollars.)

Financial results

Revenue from oil and natural gas sales (including liquids and transport revenue) during the second quarter of 2014 totalled $56,874 down from the $90,063 reported during the second quarter of 2013.

The primary reason for the decrease in revenue for the quarter was the fact that several of the company's gas wells at Joffre, Alta., remained shut in, resulting in the fact that minimal revenue has been forthcoming from that area. The wells at Lloydminster were also off production during the quarter.

On a year-to-date basis, production revenue for the six months ended June 30, 2014, totalled $128,208, as opposed to $160,331 for the same period in 2013. The revenue decrease for the year to date is due in large part to the factors noted herein.

Total assets, including cash, short-term investments, accounts receivable, property and equipment, and other assets (deposits), for the period ended June 30, 2014, were $9,083,134, down slightly from the Dec. 31, 2013, total of $9,280,162 and the second quarter 2013 total of $10,666,028. The primary reason for the marginal decrease in assets was the fact that no short-term investments were accounted for in 2014.

Royalties paid in the second quarter of 2014 totalled $2,650, down from the $13,884 paid during the same period last year, as fewer wells were on production this year. For the six months ended June 30, 2014, royalties totalled $5,414 versus $16,978 for the same period in 2013.

Overall expenses for the quarter ended June 30, 2014, totalled $289,458, up approximately $64,000 from the second quarter 2013 total of $225,163. Production and operating expenses, however, were down during the second quarter of 2014: $42,964 this year compared with $82,353 in 2013. The primary reason for the increase in overall expenses was due to the fact that the company recorded a stock option expense of $100,000.

On a year-to-date basis, overall expenses were down for the first six months of 2014 as they totalled $421,080, down about $15,700 from the $436,820 for the same period last year. The primary reason for the decrease was the drop in production and operating costs from $143,353 for the first six months of 2013 to $107,794 for the first six months of this year -- a 25-per-cent decrease -- and a $52,500 decrease in general and administrative expenses.

The net comprehensive loss for the three months ended June 30, 2014, before income taxes was $291,985, compared with a loss of ($194,346) recorded during the same period a year ago. When applying deferred taxes, the second quarter loss for 2013 was $152,134. There were no deferred taxes applied for the first six months of 2014.

Year to date, the net comprehensive loss before taxes was $398,037, up approximately $12,000 over the net loss of $385,684 for the first six months of 2013.

When applying deferred taxes, the loss for 2013 was $293,850. There were no deferred taxes reported during the first six months of 2014.

Other news

In other news, Donald Benson announced today that operatorship of the company's wells at Lloydminster, Alta., has been transferred to Nordic's joint venture partner, which will be putting the wells back on production as soon as possible. In addition, on Aug. 1, Nordic's four natural gas wells at Joffre were placed back on production by the operator. The wells were shut in for a couple of months while new contracts were signed with the operator.

Finally, Mr. Benson also announced today that the date of the maturity and the interest payment for the company's Series B, three-year, 10-per-cent secured convertible redeemable debenture, scheduled for Aug. 21, 2014, have been extended to Nov. 21, 2014. Debentureholders representing the requisite percentage of the principal amount of the debentures required to facilitate the extension provided written consent to the trustee of the debenture, Computershare Trust Company of Canada.

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