Colonia Energy Corp. announced that they have drilled their fourth successful Midale oil well on its core Florence South property of southeast Saskatchewan.

The well, in which Colonia operates and holds a 37.5 per cent working interest, was rig released on Jan. 7 and came on regular production two weeks ago at rates in excess of 200 barrels of oil per day.

Expectations are that production will stabilize after the initial flush period at or above 150 barrels of oil per day. A pipeline tie-in to Colonia's battery was completed last week.

The company also completed the construction of storage, treating and salt water disposal facilities at its Florence South field in the latter part of 2007. These projects have enabled the company to conserve the area's solution gas, maintain better control over oil production activities and minimize operating costs.

Plans for the Florence South property include the drilling of one additional, 37.5 per cent working interest, horizontal well immediately and an additional well be April.