August 11, 2005 12:50 ET

Colonia Announces Asset Purchase

CALGARY, ALBERTA--(CCNMatthews - Aug. 11, 2005) -

(Not for dissemination in the United States of America)

COLONIA CORPORATION (the "Corporation") (NEX BOARD:CRP.H) is pleased to advise that it has completed an acquisition of a 45.00% working interest in a Cardium oil well located in the Fir area of Alberta. The purchase price was $397,000 and the effective date of the purchase is May 1, 2005. This purchase is in addition to the 29.75% working interest previously purchased in the same property and announced on June 23, 2005 and brings the Corporation's total working interest to 74.75%.

The well has produced for over 15 years, most recently at a rate of 11 barrels per day, but was shut-in in early May 2005 pending conservation of the associated gas volumes from the well. The return to regular production is expected to occur by mid-August 2005 at a gross estimated rate of 50 BOE/D, including the newly conserved solution gas and associated NGLs. The Corporation expects that its share of production will yield a cash flow of approximately $35,000 per month.

The Corporation continues to seek other opportunities and assets.

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