Colonia Announces Second Quarter Financials and Updates Activity

(NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA)

COLONIA ENERGY CORP. (the "Company") (TSX VENTURE:CLA) released today its
unaudited financial statements for the three and six month periods ended June
30, 2007.


Production for the six month period averaged 45 barrels of oil equivalent,
comprised of 65% oil and 35% gas and NGLs. Gross revenues totaled $498,583 and
the net loss for the period was $87,714. After accounting for non-cash charges,
cash flow from operations was $139,239. The complete financial statements may be
viewed on SEDAR at www.sedar.com.


The Company is also pleased to present an update of its recent and upcoming
activities.


In the second quarter of 2007, the Company drilled and cased a horizontal Midale
oilwell in its core area of Florence South in southeast Saskatchewan. Subsequent
to the quarter end, the well was completed and equipped and has indicated
production capability in excess of 100 barrels of oil per day. Colonia's working
interest in this well and the original vertical new field wildcat discovery well
is 37.5%. Current Company production is 115 BOE per day.


A follow-up horizontal well in the Florence South area is expected to spud in
late August and Colonia's working interest is 50%. This operation if successful,
together with currently pending area solution gas conservation, will permit the
Company's production to reach approximately 200 BOE per day in the third
quarter, exceeding its budgeted 2007 exit target rates of 170 BOE per day. In
addition, the Company expects to carry out operations on at least one gas
prospect in Alberta and one oil prospect in North Dakota prior to year-end that
have potential to add a further 100 BOE per day to Colonia's interest.


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.