CREDO Completes New Well Producing Approximately 1.9 Million Cubic Feet of Gas Per Day.

Business Editors

CREDO Petroleum Corporation (Nasdaq:CRED) today provided details of a new well located in the Anadarko Shelf of northwestern Oklahoma.

The company previously reported the well as a "tight hole."

The 7,400-foot Wills No. 1-3 well is located on the company's 2,300-acre Two Springs Prospect in Harper County, Oklahoma. It was completed from two Morrow sands totaling 13 feet. After a small fracture treatment, the well was tested at an absolute open flow rate of 2.7 million cubic feet of gas per day (MMcfgd). Pipeline sales commenced in mid-May at a daily rate of 1.9 MMcfgd, 14 barrels of condensate and no water. The well is currently producing 1.4 MMcfgd, a trace of condensate and no water. CREDO owns 29% of the well and is the operator.

The company is preparing to drill the Emet No. 1-2 well, an east offset to the Wills well. This confirmation well will test the Morrow and Chester formations at approximately 7,400 feet. CREDO will own approximately 35% of the well and will be the operator.

James T. Huffman, President, stated: "The Wills well was drilled approximately six miles north of the company's previously announced Glendena No. 1-5 and Redfearn No. 1-33 wells. We are pleased with continued successful results from our Northern Anadarko Shelf drilling program." Huffman further stated, "Our geological and engineering data indicate that further reservoir extension is likely on the Two Springs Prospect, and several additional drilling locations are presently being evaluated."

CREDO Petroleum Corporation is a publicly traded independent energy company headquartered in Denver, Colorado. The company is engaged in the exploration for, and the acquisition, development and marketing of, natural gas and crude oil in the Mid-Continent and Rocky Mountain regions. The company's stock is traded on the NASDAQ System under the symbol "CRED" and is quoted daily in the "NASDAQ Small-Cap Issues" section of The Wall Street Journal.

This press release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements included in this press release, other than statements of historical facts, address matters that the company reasonably expects, believes or anticipates will or may occur in the future. Such statements are subject to various assumptions, risks and uncertainties, many of which are beyond the control of the company. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those described in the forward-looking statements.