September 29, 2005 17:21 ET

Colonia Corporation Releases Financial Statements for the First Quarter Ended July 31, 2005

CALGARY, ALBERTA--(CCNMatthews - Sept. 29, 2005) -

(Not for dissemination in the United States of America)

Colonia Corporation ("Colonia") (NEX:CRP.H) released today its unaudited financial statements for its first quarter ended July 31, 2005.

The net loss for the period was $138,768. After accounting for non-cash charges, funds flow was a deficit of $23,741. The complete financial statements may be viewed on SEDAR at The second fiscal quarter of 2005 will show the first oil and gas production revenues for the Company, and the continuation of our return to active company status.

Since Colonia's April 30, 2005 fiscal year-end, the Company has achieved progress on a number of fronts, as detailed below.

Colonia has hired experienced and capable management in the persons of Mr. Don Campbell, P.Eng, as President and Mr. George Bowley, P.Geol., as Executive Vice President. In addition, Mr. Timothy Hoar, LLB, and Mr. John McGilvary, P.Geol. have agreed to stand for election to our Board at our upcoming Annual and Special meeting.

A $350,000 private placement carried out in June of 2005, and the Company has recently executed an engagement letter with Leede Financial Markets Inc. to raise up to $3,000,000 in an offering of units. Each unit will consist of one common share plus one half of a warrant to purchase another common share for $0.20 within 12 months.

The Company has purchased a 74.75% interest in a producing oilwell, and completed the fieldwork necessary to conserve the related solution gas. This property is expected to yield $35,000 per month of steady cash flow to the Company's interest.

The Company has also executed an agreement with Yangarra Resources Inc. whereby each of the companies will enjoy a reciprocal right to 25% of each other's newly developed exploration or exploitation projects in western Canada for a 12 month period. The Company is currently actively building its prospect inventory in both the drilling and acquisition opportunity areas.

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
    Mr. Don Campbell
    (403) 663-9849
    Colonia Corporation
    Mr. George Bowley
    (403) 663-9849