CREDO Updates Calliope Gas Recovery System Operations; Nine Wells Acquired for New Calliope Installations.

Business Editors

DENVER--(BUSINESS WIRE)--Nov. 21, 2002

CREDO Petroleum Corporation (Nasdaq:CRED) today announced it has acquired nine wells (two previously announced) for application of its patented Calliope Gas Recovery System.

The company also updated progress on its Calliope multimedia presentation.

CALLIOPE OPERATIONS

As previously reported, CREDO owns the exclusive right to a patented technology known as the Calliope Gas Recovery System. Calliope can generally achieve substantially lower flowing bottom hole pressure than conventional gas production methods because it does not rely on reservoir pressure to lift liquids. In many gas wells, lower bottom hole pressure translates into recovery of substantial additional gas reserves.

CREDO's existing Calliope applications have proven the technology to be low risk, cost effective and repeatable over a wide range of depths and applications. For example, the 12,800-foot J.C. Carroll well had been dead for several years when the company purchased it and installed Calliope. Calliope immediately restored production to 643 Mcfgd (thousand cubic feet of gas per day). In the succeeding three years, the well has produced over 550 MMcfg (million cubic feet of gas) and it is currently producing at an excellent rate of 400 Mcfgd. Total reserves added by Calliope are estimated to be 1.7 Bcfg (billion cubic feet of gas) which, at today's values, are worth over $5,000,000. CREDO owns 80% of the well and is the operator.

James T. Huffman, President, stated, "Calliope has made a very positive impact on CREDO's production and reserves. It is highly unusual for a new technology to be profitable during the research, development and testing stages." Huffman further stated, "Our learning curve has been very steep. We look forward to applying that knowledge on the newly acquired wells to streamline installations, drive-down costs, and enhance the value created by Calliope."

The company's cost to acquire the nine wells was about $420,000. Additional interests may be acquired in several of the wells. Each well has substantial Calliope reserve potential ranging from several hundred million up to 2.0 billion cubic feet of gas.

Huffman said, "Well records indicate that the wellbores (except the Green Estate) are in good condition for Calliope installations. We are very optimistic that most of the installations will be successful. However, unforeseeable down-hole mechanical problems and reservoir damage caused by the `parting shots' of previous owners make it unrealistic to expect successful installations on all nine wells."

The 18,400-foot Green Estate well located in Beckham County, Oklahoma has produced 28.8 Bcfg and a minor amount of oil from the Hunton formation. It has been dead for over a year. This well will provide a very rigorous test for Calliope in terms of both extreme depth and the challenge of reviving a dead well. The company is currently attempting to remove fill that is covering some of the perforations and to mitigate reservoir damage caused during a workover by the previous owners. If current operations are successful, Calliope will be installed. The well has good remaining pressure and high Calliope reserve potential. CREDO is the operator and owns a 65% interest in the well.

The 12,400-foot Horn well located in Grady County, Oklahoma has produced 12.9 Bcfg and minor amounts of oil from the Springer formation. This well has also been dead for over a year. The company removed coil tubing which was stuck in the well and has obtained new leases. CREDO is the operator and owns an 80% interest in the well.

The 11,100-foot Fee well is located in Hemphill County, Texas and has produced 8.0 Bcfg and 152,000 barrels of oil from the Morrow formation. The well is currently dead. CREDO is operator of the well and owns an 80% interest.

The 8,350-foot Patterson well is located in Blaine County, Oklahoma and has produced 14.8 Bcfg and 72,000 barrels of oil from the Morrow formation. The well is currently dead. The company is the operator and owns an 80% interest in the well.

The remaining five wells are located in the Anadarko Basin of Oklahoma. CREDO is operator of the wells and currently owns interests between 26% and 65%. The wells range in depth from 7,800 to 12,300 feet, and all but one of the wells are currently dead. The individual wells have produced between 3.4 and 22.0 Bcfg-equivalent. Further information about these wells is not provided at this time for proprietary business reasons.

CALLIOPE MULTIMEDIA PRESENTATION

As previously reported, the company is preparing a highly sophisticated multimedia presentation about Calliope, including animation of underground operations. The presentation will be used to introduce Calliope to certain companies with the objective of joint venturing, licensing or providing Calliope for a fee.

"We have proven Calliope will add .5 billion to 2.0 billion cubic feet of gas reserves to many dead and uneconomic wells. Now we must ramp-up the volume of Calliope installations. The multimedia presentation is designed to help us accomplish that objective," Huffman said.

Huffman further stated, "Completion of the multimedia presentation was significantly delayed because we changed production companies during the project. Additional delays have resulted from time limitations on our staff as resources are allocated among various projects. Nevertheless, we are very pleased with the quality of the project and expect to have it completed early in 2003. In the meantime, we have ample work ahead to install Calliope systems on the recently acquired wells."

For more information about the Calliope Gas Recovery System, including its track record on certain wells, visit CREDO's website, www.credopetroleum.com.

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.