June 20, 2005 19:13 ET

Colonia Announces Asset Purchase

CALGARY, ALBERTA--(CCNMatthews - June 20, 2005) -

(Not for dissemination in the United States of America)

COLONIA CORPORATION (the "Corporation") (NEX:CRP.H) announces that it has entered into a purchase and sale agreement dated June 20, 2005 with a mid-sized oil and gas producer (the "Agreement") providing for the acquisition of a 29.75% working interest in a Cardium oil well located in the Fir area of Alberta. The purchase price is $250,000 and the effective date of the purchase is May 1, 2005.

The well has historically produced at 11 barrels per day, but was shut-in in early May, pending conservation of the associated gas volumes from the well. The return to regular production is expected to occur by August 1, 2005.

Subject to regulatory approval, the closing of the purchase is expected to occur later this week.

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

Contact Information

  • Colonia Corporation
    Donald Campbell
    (403) 540-2003
    Colonia Corporation
    Suite 1530, 715 - 5th Avenue S.W.
    Calgary, AB T2P 2X6