November 26, 2007 14:16 ET

Colonia Announces Record Third Quarter

CALGARY, ALBERTA--(Marketwire - Nov. 26, 2007) -


COLONIA ENERGY CORP. (the "Company") (TSX VENTURE:CLA) released today its unaudited financial statements for the three and nine month periods ended September 30, 2007.

Production for the third quarter averaged 98 BOE per day, up 123% from the second quarter while current production rates have climbed to 125 BOE per day. Revenue for the nine month period was $1,177,890 up 171% while cash flow from operations was $558,451, up 380% from the year prior. The majority of Colonia's production base consists of high quality 40( API sweet crude resulting in field netbacks for the most recent quarter that were outstanding, averaging $52.00 per BOE.

Colonia continues to focus its efforts upon further developing its core area of Florence South in southeastern Saskatchewan. The Company is completing construction of storage, treating and salt water disposal facilities located at its recently drilled successful 4D9-24 horizontal oil well in order to effect gas conservation and minimize operating costs. Production from the 1C5-1-1-W2M well which indicated productivity of up to 85 bopd at high water cuts on initial completion will commence once the Company's facility is fully operation near year end.

The Company will drill an additional 37.5% working interest horizontal well on its Florence South property before year end. As well, in North Dakota on the Company's Missouri Ridge re-entry prospect, revised spacing approval is expected in the first quarter to allow for subsequent field operations. The Company's holdings average 54% and immediately offset two vertical Mississippian oil wells that had an average initial productivity of 130 bopd and to date have each produced approximately 200,000 barrels of oil. Initial plans are for the re-entry of an abandoned well with indicated bypassed Ratcliffe oil potential, followed if successful by a horizontal well in the same zone.

Additional information on Colonia Energy Corp. may be viewed on SEDAR at or visit our website at

BOE Presentation - The term barrels of oil equivalent (BOE) may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. All BOE conversions in this report are derived by converting gas to oil in the ratio of six mcf of gas to one bbl of oil.

The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy and accuracy of this release.

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