CREDO Updates Successful Drilling Results in the Northern Anadarko Basin of Oklahoma.

Business Editors

DENVER--(BUSINESS WIRE)--Aug. 8, 2002

CREDO Petroleum Corporation (Nasdaq: CRED) today provided additional information regarding the status of its continuing drilling program in the Anadarko Shelf of northwestern Oklahoma.

In Ellis County, Oklahoma, the previously announced 8,600-foot Thurmond #2-36 well was drilled on the company's 640-acre Thurmond Prospect. The well unexpectedly cut a fault in the Morrow formation that eliminated several of the objective sands. It has been completed from two Morrow sands totaling 10 feet with average porosity of 9%. After fracture treatment, the well commenced pipeline sales in July. It is currently producing at a daily rate of 300 Mcfg (thousand cubic feet of gas) and no liquids. CREDO owns 37% of the well and is the operator.

In Harper County, Oklahoma, the Easterwood #1-28 well was previously reported as a "tight hole," meaning that for proprietary business reasons the company had elected not to release detailed information about the well. The well was drilled about one mile north of the company's Redfearn #1-33 well on its 2,900-acre Sand Creek Prospect, and is the third successful well drilled on the prospect. The 7,400-foot well encountered two Morrow sands totaling 10 feet with average porosity ranging from 13% to 16%. It is currently awaiting pipeline connection prior to being completed for production. Completion results will be released when available. CREDO owns 40% of the well and is the operator.

Also in Harper County, the company participated in drilling the Weiszbrod #1-34. This well is located on the company's 2,900-acre Sand Creek Prospect about one mile east of the Redfearn #1-33 well. The Weiszbrod well targeted the Morrow sands at 7,400-feet and is the fourth well drilled on the prospect. It is currently classified as a tight hole. CREDO owns 33% of the well.

Five miles north of the Easterwood well, the company is preparing to drill a second well on its 2,300-acre Two Springs Prospect. The Emet #1-2 well will be an east offset to the previously announced Wills #1-3 which had an initial production rate of 1.9 MMcfgd (million cubic feet of gas per day). The well is scheduled to test the Morrow and Chester formations at 7,400 feet. CREDO will own approximately 35% of the well and will be the operator.

James T. Huffman, President, stated: "We continue to be very pleased with the success of our Northern Anadarko Basin drilling program. Our geological and engineering data indicate that further reservoir extension is likely on both our 2,900-acre Sand Creek Prospect and our 2,300-acre Two Springs Prospect. We have scheduled additional wells on both prospects, and we are currently evaluating a number of other drilling locations."

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.