Here is part of the reasons why, next post will explain why financing at 0.60

Nordic Oil and Gas Announces First Quarter 2008 Results

Extract of...

Current assets, including cash, term deposits and accounts receivable at
the end of the first quarter were 5,847,257, up significantly from the
$3,169,248 at the end of 2007. This was due largely to the successful
financing completed during the first quarter of the year. Total assets as at
March 31, 2008 were $10,882,995, up significantly from the 2007 year-end total
of $7,713,059. This was due primarily to the substantial increase in short
term investments which increased to $3,907,439 from $204,191 in 2008.

Commenting on the financial results Mr. Benson stated: "We are pleased to
see that our revenue has increased when compared to the previous two quarters
and we expect this trend to continue in the quarters ahead. In addition, we
are also delighted that we are in such a strong cash position at the end of
the quarter. Our ability to raise a record amount of money in 2007, coupled
with the successful financing that closed in March of this year, we are on the
strongest financial ground we have ever been on.
"This will allow us to undertake our most aggressive and largest capital
expenditures program in our history, beginning with our exploration drilling
initiatives in Preeceville, Saskatchewan and our development drilling
activities in both Joffre and Lloydminster, Alberta," he added.


And about financing:

In other news, Mr. Benson also announced today that Nordic has retained
Raymond James Ltd. ("Raymond James") to act as the Company's agent for a
brokered private placement financing. Raymond James will be offering this
financing to a predetermined select group of clients. The Offering will
consist of up to 4,166,666 Units ("Units") at a price of $0.60 per Unit for
total gross proceeds of $2.5 million.
Each Unit will consist of one Class A common share of the Company issued
as a "flow-through share" within the meaning of the Income Tax Act (Canada)
and one half of one Class A common share purchase warrant (a "Warrant"). Each
whole Warrant will entitle the holder thereof to purchase one non flow-through
regular Class A common share of the Company at a price of $0.85 for a period
of two years from the date of issuance

http://www.newswire.ca/en/releases/a...

ecce