November 16, 2007 13:04 ET

Colonia Announces Successful Oilwell and Updates Activity

CALGARY, ALBERTA--(Marketwire - Nov. 16, 2007) -


COLONIA ENERGY CORP. (the "Company") (TSX VENTURE:CLA) is pleased to announce the drilling of its third successful Midale oil well on its Florence property of SE Saskatchewan in the third quarter of this year. The well, with a surface location at 4D9-24-1-1W2M is a 50% working interest horizontal follow-up to the previously announced 2-13 vertical and 2D8-13 horizontal oil wells and is currently producing at approximately 50 bopd.

In order to effect gas conservation, maintain better control over oil production activities and minimize operating costs, the Company is completing the construction of storage, treating and salt water disposal facilities located at its 9-24 location. Production from the 1C5-1-1-1W2M horizontal well, which has been waiting on U.S. regulatory approval for salt water disposal shall commence once the Company's own facility is operational near year-end.

Solution gas conservation has already commenced on the property from the 2D8-13-1-1W2M well providing an additional 12 BOE/d net to Colonia. An additional 10 BOE/d net to the Company from solution gas conservation is expected once the facility is fully operational.

Plans are underway for the drilling of one additional 37.5% working interest horizontal well in this area before year-end. Current production for the Company is approximately 125 BOE/d with over 75% of this production being 40o API sweet crude attracting a premium price. The balance of the Company's production is natural gas liquids and high heat content solution gas. With current oil prices and the pending completion of Company owned salt water disposal facilities, Colonia's corporate average netbacks will exceed $50.00 per BOE.

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.

Contact Information