CLA Colonia Energy (Tier2)

NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA

COLONIA ENERGY CORP. ("Colonia" or, the "Company") (TSX VENTURE:CLA) released
today its un-audited financial statements for the three and nine month periods
ended September 30, 2008.


Colonia showed continuing growth in the quarter ended September 30, 2008 in
comparison to the corresponding quarter one year ago. Quarterly production grew
by 75% to 172 BOE per day, oil and gas revenues increased 160% to over
$1,771,000, cash flow rose 155% to $1,070,000, and earnings jumped more than
five fold to $570,000.


The Company focuses almost exclusively in the Williston Basin where its
production is comprised entirely of light, 40 degree API gravity sweet crude oil
and related solution gas. Colonia's production is pipeline connected to Company
owned and operated central battery and saltwater disposal facilities, leading to
cost efficient operations. Average revenue for the third quarter was virtually
identical to that received in the second quarter of 2008 at just over $110 per
BOE. Colonia's average field netback for the most recent two quarters was $85.16
per BOE. These metrics compare to the third quarter 2007 revenue of $75.34 per
BOE and corresponding field netback of $51.86 per BOE. The high revenue and
field netbacks on a per BOE basis allow the Company to withstand large commodity
price fluctuations while maintaining a robust cash flow.


In September, the Company equipped its 45% working interest well in the Florence
South area at 4-1-1-1 W2M for an extended production test. The test confirmed
the well's capability at 40 - 45 barrels of oil per day and pipeline tie-in
operations to the Company's central battery facilities are currently underway.


Throughout the third quarter of 2008, the Company continued its leasing
activities in southeastern Saskatchewan, focusing on acreage prospective for
Midale and Bakken production. Colonia's leasing efforts for Bakken potential
have resulted in a meaningful acreage position in very prospective areas.


The Company has developed several Midale prospects in southeastern Saskatchewan
and is proceeding to mature them to a drill ready stage. We expect that the
first of these plays will be drilled prior to spring breakup 2009 and look
forward to reporting on our results at that time.


Colonia enters the fourth quarter of 2008 with a strong balance sheet having no
debt, an available bank line of $2,000,000 and working capital of $1,176,000. In
addition to growth through the drill bit, the Company continues to evaluate
asset acquisitions and corporate combination opportunities that are increasingly
coming available.


Additional information on Colonia Energy Corp. may be viewed on SEDAR at
www.sedar.com.


Advisory

This news release contains forward looking statements which may include
assumptions related to the Company's drilling success, production, capital
expenditures and cash flow. These statements are based on current expectations
that involve a number of risks and uncertainties which could cause actual
results to vary from those anticipated.


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.

Colonia Energy (Tier2) (TSXV:CLA)
Gráfica de Acción Histórica
De Oct 2024 a Nov 2024

Colonia Energy (Tier2) (TSXV:CLA)
Gráfica de Acción Histórica
De Nov 2023 a Nov 2024