Colonia Energy Corp. Sets Record Date for Rights Offering

NOT FOR DISSEMINATION OR DISTRIBUTION IN THE UNITED STATES OR TO UNITED STATES
NEWS WIRE SERVICES.


Colonia Energy Corp. ("Colonia" or the "Corporation") (TSX VENTURE:CLA) is
pleased to announce that it is proceeding with its previously announced rights
offering to shareholders of Colonia ("Rights Offering") resident in the
provinces of Alberta, British Columbia, Saskatchewan, Manitoba, Ontario, Nova
Scotia, Prince Edward Island, Newfoundland and Labrador and the Northwest
Territories (the "Qualifying Jurisdictions"). Pursuant to the terms of the
Rights Offering, shareholders of the Corporation residing in the Qualifying
Jurisdictions as at December 23, 2009 (the "Record Date") will be granted rights
(the "Rights") evidenced by transferable Rights certificates to purchase up to
13,915,875 common shares in the capital of the Corporation ("Common Shares"). A
holder of Common Shares as at the Record Date will be entitled to one (1) Right
per Common Share held and four (4) Rights will entitle the holder thereof to
purchase one (1) Common Share at $0.14 per Common Share. There is no standby
commitment or additional subscription privilege. Details of the Rights Offering
are described in the Rights Offering Circular to be mailed to shareholders in
connection with the Rights Offering.


The Corporation has received conditional approval from the TSX Venture Exchange
Inc. (the "Exchange") for posting and listing the Rights and the Common Shares
issuable thereunder, subject to the Corporation satisfying certain conditions
pursuant to the policies of the Exchange. The Rights expire at 4:00 p.m.
(Calgary time) on January 13, 2010 (the "Expiry Date").


Pursuant to the Exchange Bulletin dated December 10, 2009, the Common Shares are
expected to commence trading on the Exchange on an ex-rights basis at the
opening of business on December 21, 2009. This means that Common Shares
purchased on or following December 21, 2009 will not be entitled to receive
Rights under the Rights Offering. At that time, the Rights are expected to be
posted for trading on a "when issued" basis on the Exchange under the symbol
"CLA.RT". Trading of the Rights is expected to continue until 10:00 a.m.
(Calgary time) on the Expiry Date.


Pursuant to the requirements under applicable securities legislation, a Rights
Offering Circular dated December 4, 2009 has been accepted for filing by the
securities regulatory authorities in the Qualifying Jurisdictions. The Rights
Offering Circular and related materials will be delivered to all shareholders of
the Corporation as of the Record Date. Rights certificates will not be issued or
delivered to registered shareholders who are residents of jurisdictions other
than the Qualifying Jurisdictions ("Non-Qualified Shareholders"). Olympia Trust
Company will use its best efforts to sell the Rights evidenced by such Rights
certificates on behalf of all such respective holders prior to the Expiry Date.
The net proceeds (less any applicable withholding tax) of such sale will be paid
to such holders on a pro rata basis after the Expiry Date.


Subscribers pursuant to Colonia's unit and common share private placement, which
closed on November 19 and 23, 2009 (the "Private Placement"), have agreed not to
exercise, sell, trade or otherwise convey any interest in any of the Rights
issued to them in relation to the securities purchased pursuant to the Private
Placement. Holders of the outstanding subscription receipts of Colonia will not
receive any Rights as they will not be shareholders of the Corporation on the
Record Date.


If all of the Rights are exercised, Colonia will receive gross proceeds of
$1,948,222.50. The completion of the Rights Offering is not conditional upon
Colonia receiving any minimum amount of subscriptions from shareholders. The
proceeds of the Rights Offering will be used by the Corporation to fund general
working capital and capital expenditures of the Corporation as well as to fund
the expenses incurred by the Corporation in connection with its recent
reorganization and the Private Placement.


Completion of the Rights Offering is subject to receiving all necessary
regulatory and Exchange approvals.


Note Regarding Forward Looking Statements

This document contains forward-looking statements. More particularly, this
document contains statements concerning the use of proceeds of the Rights
Offering. The forward-looking statements are based on certain key expectations
and assumptions made by Colonia, including expectations and assumptions
concerning timing of receipt of required regulatory approvals and the
satisfaction of other conditions to the completion of the Rights Offering.


Although Colonia believes that the expectations and assumptions on which the
forward-looking statements are based are reasonable, undue reliance should not
be placed on the forward-looking statements because Colonia can give no
assurance that they will prove to be correct. Since forward-looking statements
address future events and conditions, by their very nature they involve inherent
risks and uncertainties. Actual results could differ materially from those
currently anticipated due to a number of factors and risks. These include, but
are not limited to, risks that required regulatory consents are not obtained on
terms satisfactory to the parties or the board of directors of Colonia
determines that it would be in the best interests of Colonia to deploy the
proceeds for some other purpose and risks that other conditions to the
completion of the Rights Offering are not satisfied on anticipated timelines or
at all.


The forward-looking statements contained in this press release are made as of
the date hereof and Colonia undertakes no obligation to update publicly or
revise any forward-looking statements or information, whether as a result of new
information, future events or otherwise, unless so required by applicable
securities laws.