NDOL/North-West Still Bubbly About Magma

Nord Oil International, Inc.

Nord Oil International, Inc. (NDOL)/North-West Oil Group announced Friday that it is eager to continue the process of acquiring of OAO NK Magma.

The tender to which NDOL/North-West had previously referred was a private tender that permitted it to negotiate with Magma directly without the necessity of dealing with other interested buyers. Although the acquisition price is not yet determined, NDOL/North-West expects it to be in the range that was referred to earlier. This transaction is mportant for the company because it would immediately increase the company's oil production fivefold.

North-West is in negotiations to purchase the oil producing company OAO NK Magma and intends to acquire the shareholders' block of common shares, which constitute 98% of NDOL/North-West’s share capital. North-West offered $350 million for the present asset. Following a positive result, the present transaction would be finalized at some point from July to September 2006. Recovery of the investment made in the present acquisition will be from 3 to 5 years, depending on the price of oil on the world market.

Magma holds licenses for exploration and production at the Yuzhnoye and the Orehovskoye oil fields in Russia’s Nizhnevartovskiy district of the Khanty-Mansi Autonomous Area (KhMAO).

TheYuzhnoye oil field has initial recoverable C1+C2 oil reserves approved by the State Reserves Committee under the Russia Federation Ministry of Natural Resources (SRC) and which amount to 102,718,000 barrels--of oil, of which category Cl reserves totaled 97,294,000 barrels. As of January 2005, the total oil production reached 18,359,000 barrels, and the remaining recoverable reserves amounted to 84,358,000 barrels of oil, where category Cl reserves equal 78,934,000 barrels. The Orehovskoye field has a total initial recoverable category C1+C2 reserves in the state reports that amount to 52,684,000 barrels, of which Cl reserves total 47,530,000 barrels. The total category C1+C2 remaining recoverable reserves of the Yuzhnoye and the Orehovskoye oil fields amount to 137,042,000 barrels, of which category Cl reserves total 126,465,000 barrels.

The year 2005 production is 2,409,000 barrels, which is 37.5% more than in 2004. NDOL/North-West plans to bring 15 new wells into operation. Over a 9-month period, it drilled 10 new wells and produced 1,832,000 barrels of oil. In September 2005, daily oil output reached 7,263,000 barrels, corresponding to an annual output of 2,649,000 barrels. The average oil output for 2004 totaled 225 barrels per day; for 2005 the daily average was 233 barrels per day. The production peak is planned for 2008 at the rate of 5,548,000 barrels per annum.

As of October 1, 2005, the Yuzhnoye oil field infrastructure consists of 33 producing oil wells, an automatic group custody transfer meter, two booster-pumping stations, power lines, and a field pipeline system. NDOL/North-West also owns a pipeline to the oil filling station in ÎÀÎ "Nizhnevartovskoye Neftegazodobyvayuschee Predpriyatie" (the NNP) owned by ÎÀÎ TNK-BP, and a custody transfer station. In the last quarter of 2005 a block cluster pumping station was put into operation providing facilities for total utilization of water produced as a result of oil separation, and the finishing organization of the reservoir pressure maintenance system. Nord Oil International Inc. is a reporting, publicly traded oil and gas company trading under the ticker symbol NDOL on the U.S. Pinksheets market as well as on the Frankfurt Exchange under symbol CXIA. NDOL and the North-West Oil Group merged on May 11, 2006. The company is in the process of filing all regulatory statements and will change its name to the North-West Oil Group and will be issued a new ticker symbol. The company presently produces more than 120,000 metric tons of crude oil yearly.