Colonia Energy Corp. Posts Steady First Quarter Results

NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA

COLONIA ENERGY CORP. ("Colonia" or, the "Company") (TSX VENTURE:CLA) released
today its unaudited financial statements for the three month period ended March
31, 2009. 


Against a backdrop of continued contraction in the western Canadian oil and gas
industry where benchmark prices for both oil and gas decreased a further 25%
from the prior quarter, Colonia posted steady results. Production for the
quarter averaged 139 BOE per day, 1% lower than the prior quarter. A well
purchased in late March 2009 added an additional 15 bopd to the corporate
production at the end of the reporting period.


Cash flow for the quarter was $276,000, down 5% from the fourth quarter of 2008
and off 66% from the $812,000 achieved in the first quarter of 2008. The
differences are almost exclusively attributable to the outstanding revenue and
field netback values achieved in Q1 2008 of $85.67 and $64.28 per BOE
respectively, as compared to the significantly more modest metrics of $44.17 and
$31.00 respectively for Q1 2009. The Company showed a loss of $41,000 for the
quarter compared to earnings of $355,000 for the corresponding period the year
prior. Based upon current production levels of more than 160 BOE per day and
significantly improved oil prices to date in the second quarter of 2009, the
Company expects to report a marked improvement in cash flow and earnings for our
next reporting period.


The Company's working capital at the end of the current quarter stands at
$540,000, versus a year previous value of $535,000. Our bank line of credit
remained un-drawn at the end of each of those reporting periods.


The Company's prospect inventory has never been stronger and contains more than
half a dozen potential locations, each with an expectation of yielding 100 BOE
per day or more. Going forward, Colonia believes that the outlook for our
industry is sufficiently stable and predictable to allow the Company to
participate in several impact operations in the latter half of 2009.


Colonia has concentrated its asset base exclusively on light oil properties,
primarily in southeast Saskatchewan. The Company's solid and growing inventory
of mainly Bakken and Midale light oil prospects, a pristine balance sheet, and
sharply recovering oil prices of late are factors that will permit the Company
to be amongst the first to reinstate the pattern of growth that was disrupted by
the world economic events of mid-2008.


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.