CREDO Updates Drilling Activity.

DENVER -- CREDO Petroleum Corporation (NASDAQ:CRED) today updated drilling activity.

The previously announced Skyler #1-6 is the first well drilled on the company's 1,280 gross acre Gage Prospect in Ellis County, Oklahoma. The 9,175-foot well encountered 92 feet of productive Morrow sand and is producing into the pipeline. Due to the sand thickness, the well is being completed in intervals. After fracture stimulation, the second sand interval (totaling 35 feet) is currently producing at daily rates up to 2.4 MMcf (million cubic feet of gas) with 10 barrels of oil and 10 to 15 barrels of load water. Production is currently constrained by an 18/64ths choke resulting in a flowing tubing pressure of 1,000 psi. The well's calculated absolute open flow is 3.0 to 3.5 MMcf per day. CREDO owns a 51% working interest and is the operator. The company currently expects to drill three offset locations on the prospect.

Approximately 25 miles to the north, the company previously announced a second exploratory well on its 3,840 gross acre Glacier Prospect located in Harper County. This wildcat targeted the Morrow and Chester formations at 7,500 feet and has been completed for production. It is currently awaiting construction of a two-mile pipeline. The well continues to be classified as a "tight hole" meaning that further information is not being released for competitive business reasons. CREDO is the operator and owns a 70% working interest. The first well on the prospect encountered only two feet of porous Morrow channel sand and was plugged due to the likelihood of marginal production.

In addition, the company is finalizing an agreement for an exploration program using 3-D seismic to define the Vicksburg and Frio sands in Hidalgo, Jim Hogg and Star Counties located in south Texas. Due to the size of the project, the agreement provides for a minimum two-year term.

James T. Huffman, President stated: "The south Texas exploration program provides an excellent opportunity for our company to expand into another prolific gas region. Like our Anadarko Shelf team, the south Texas exploration team has many years of experience and a proven track record in the region."

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.