CREDO Petroleum Corporation Announces Closing of Strategic Investment in the Company by RCH Energy.

Alford B. Neely Elected Vice President and Chief Financial Officer

DENVER -- CREDO Petroleum Corporation (NASDAQ:CRED), an independent oil and gas company, reported today that the previously announced transaction with RCH Energy closed on July 3, 2008, and that Alford B. Neely has been elected to serve as the company's Vice President and Chief Financial Officer.

RCH ENERGY INVESTMENT IN CREDO CLOSED

AND TWO RCH REPRESENTATIVES ELECTED TO THE BOARD OF DIRECTORS

RCH Energy Opportunity Fund II, LP and RCH Energy Opportunity Fund III, LP ("RCH" or the "Funds") have acquired 17.5% of CREDO's outstanding common stock, or 1,837,000 shares, at a price of $14.50 per share. The Funds are public/private oil and gas exploration and production equity investment funds based in Dallas, Texas.

All of the shares acquired by RCH will initially be restricted and not freely tradable in the open market, however, RCH has certain future registration rights. The stock purchase agreement contains a standstill provision providing that RCH will not purchase additional CREDO stock for a period of two years from the date of the agreement without the consent of the Board of Directors.

Pursuant to the agreements, CREDO's Board of Directors has been expanded to seven members including two directors nominated by RCH, W. Mark Meyer and John A. Rigas, who have been elected to the Board. Mr. Meyer is President of RR Advisors, LLC, the General Partner of the Funds, and he is a Principal of the Funds. Mr. Meyer graduated from Texas A&M University in 1986 with a Bachelor of Science Degree (cum laude) in Petroleum Engineering. His industry career involved domestic and international operational engineering and managerial assignments with Exxon, Chevron and Union Texas Petroleum. After receiving his MBA from the University of Chicago in 1996, he worked as a management consultant with A.T. Kearney. More recently, Mr. Meyer was an energy Portfolio Manager for CastleArk Management, a Chicago-based investment counsel, and a Senior Equity Research Analyst of the exploration and production sector for Simmons & Company International and Goldman Sachs. Mr. Meyer is a past director of GFI Oil & Gas Corp. and is currently a director of several RCH Energy portfolio companies.

Mr. Rigas is Vice President of RR Advisors, LLC and a Partner in the Funds. He graduated from Texas A&M University in 1986 with a Petroleum Engineering degree. His industry career has involved oil and gas operation and energy trading assignments with Atlantic Richfield Company (ARCO) and Vastar Oil and Gas. In 1998, Mr. Rigas served on the senior management team of the energy capital group at Mirant Energy. While at Mirant he was responsible for originating, structuring, closing and managing upstream mezzanine debt and equity facilities. More recently, Mr. Rigas was a principal in Odyssey Energy Capital I, LP, managing a portfolio of oil and gas mezzanine loans and an independent consultant in business development for various oil and gas companies. He is currently a director of several RCH Energy portfolio companies.

James T. Huffman, CREDO's Chief Executive Officer and Chairman of the Board of Directors, stated, "The RCH transaction represents the culmination of an extensive evaluation process started last year whereby the company's management and directors, in consultation with Merrill Lynch & Co., have thoroughly reviewed and explored strategic options and alternatives available to CREDO. In addition to new capital, this transaction brings directors to CREDO's Board who have extensive oil and gas engineering backgrounds as well as financial and capital market experience in the oil and gas industry. RCH is a successful and highly regarded investor in oil and gas companies, both public and private. We are excited about the knowledge and experience they will bring to our business, and we are pleased to have RCH as a strategic partner."

"CREDO has a strong asset base with excellent growth potential in both its conventional oil and gas and intellectual property assets," Huffman said. "The RCH transaction will allow us to accelerate development of our oil and gas properties and to consolidate our Calliope ownership. Both CREDO and RCH expect this relationship to substantially increase CREDO's opportunities to monetize Calliope."

ALFORD B. NEELY ELECTED VICE PRESIDENT

AND CHIEF FINANCIAL OFFICER

Effective immediately, Alford B. Neely has been elected as the company's Vice President and Chief Financial Officer. Mr. Neely has served as the company's Manager of Regulatory Compliance since July 2006 and was formerly the company's Vice President and Chief Financial Officer from 1998 to 2000. Mr. Neely replaces David E. Dennis who has been serving on a part time basis as the company's interim Chief Financial Officer.

Huffman further stated, "Al Neely served as CREDO's Vice President and Chief Financial Officer until he left to join his family business. He returned to CREDO in 2006 just as we were implementing Sarbanes-Oxley regulations and he has managed the company's regulatory compliance during the critical period of SOX implementation. We are very confident in Al's capabilities and we are pleased to elevate him back to the position of Chief Financial Officer."

Mr. Neely was previously Vice President Finance of Unidata, Inc. He also served as a Director of Sprint Corporation and Senior Vice President Finance and Administration of Technical Oil Tool Corporation (a subsidiary of Baker Oil Tools). He graduated with a B. S. Degree in Accounting from California State Polytechnic University and initially joined the audit staff at Deloitte & Touche.

About CREDO Petroleum Corporation -- 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 and in application of its patented Calliope Gas Recovery System. CREDO owns working and royalty interests in approximately 1,445 wells. The company's stock is traded on the NASDAQ System under the symbol "CRED" and is quoted daily in the "NASDAQ Global Market" section of The Wall Street Journal.

About RCH Energy Opportunity Fund II, LP and RCH Energy Opportunity Fund III, LP -- RCH Energy Opportunity Fund II, LP and RCH Energy Opportunity Fund III, LP are private investment funds headquartered in Dallas, Texas that focus exclusively on the oil and gas sector. The Funds' investments in CREDO Petroleum Corporation are managed by John A. Rigas and W. Mark Meyer, both of whom have extensive operating, technical and financial experience in the oil and gas industry.

For more information about the company, visit http://www.credopetroleum.com.

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. Investors are encouraged to read the "Forward-Looking Statements" and "Risk Factors" sections included in the company's 2007 Annual Report on Form 10-K for more information. Although the company may from time to time voluntarily update its prior forward looking statements, it disclaims any commitment to do so except as required by securities laws.