Mr. Donald Benson reports

NOEL RECOMPLETION UPDATE

Nordic Oil & Gas Ltd.'s recompleted existing well at Noel South currently has casing pressure of 6,500 kilopascals, an increase of 20 per cent since January. This bodes well with the company's being able to put this well on production shortly. The Cardium well planned for the same location has been surveyed, and the licensing process continues. In addition, the corporation has had a discussion regarding the purchase of a copy of existing 3-D seismic over its Noel North property. This will at a very reasonable cost enable it to take a lot of risk out of the drilling of further wells, as 3-D identifies potential locations in a very precise manner. The company is entitled to drill as many as nine additional wells on Noel North.

At Lloydminster, Nordic has completed a swap of assets with its previous partner, wherein Nordic now owns 100 per cent of two wells and an additional three spacing units where it can drill three additional wells. The company is now exploring the opportunity of selling its oil direct to asphalt contractors.

In the last month, the corporation began paying interest on its outstanding debentures. Nordic intends to seek the consent of its debentureholders to allow for the payment of interest on a quarterly basis to reduce administration costs.