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Credo Updates Oklahoma Drilling Results.

Business Editors

DENVER--(BUSINESS WIRE)--Jan. 16, 2003

CREDO Petroleum Corporation (Nasdaq:CRED) today updated drilling results for its Northern Anadarko Basin drilling program and other areas of Oklahoma.

Since drilling operations were last updated on October 11, 2002, five additional wells have been drilled on the company's 11,000 gross acre Sand Creek and 3,000 gross acre Two Springs Prospects located in Ellis and Harper Counties. Four of the wells were successful and one was a dry hole. To date, 14 wells have been drilled on the two prospects of which 11 were successful, two were dry holes, and one is undergoing extended evaluation. The wells target the Morrow and Chester formations between 7,500 and 9,000 feet.

James T. Huffman, President, stated, "We continue to be very pleased with our drilling results. The area affords the opportunity to drill for significant reserves at modest depths and costs. Both prospects have ample room for additional drilling."

Potentially the most significant of the new wells is the Hudson Trust #1 where the company owns a 32% interest. The well is located on the Sand Creek Prospect about one mile east of CREDO's Redfearn #1 well, which is an exceptional well for the area. The 7,500-foot Hudson Trust well encountered 14 feet of Morrow sand and tested 2.1 MMcfg (million cubic feet of gas) per day from a "natural" (no acid or fracture stimulation) completion with good pressures. Logs and other data look very similar to the Redfearn well. The well is currently awaiting pipeline connection.

One mile north of the Hudson Trust well, the company drilled the previously announced Hudson #1 well. The 7,400-foot well encountered 15 feet of Morrow sand which looks very good on electric logs. However, perforation and acid breakdown results have not been encouraging. The company is currently preparing to fracture stimulate the well. CREDO owns 62% of the well and is the operator.

About three miles north on the Two Springs Prospect, the company drilled the Wills #1 well. The 7,400-foot well encountered seven feet of Morrow sand which electric logs indicate is productive. It was recently connected to the pipeline and is currently being completed for production. CREDO owns 36% of the well and is the operator.

One mile northeast of the Wills well, the company completed the previously announced Emet #1 well. The 7,300-foot well encountered nine feet of productive Morrow sand. After fracture stimulation, the well flowed 550 Mcfg (thousand cubic feet of gas) per day. CREDO owns 35% of the well and is the operator.

One-half mile north of the Emet well, the company participated for a 12.5% interest in the Brown #1 well. The 7,200-foot well encountered Morrow sand which electric logs indicate is productive. It is currently classified as a "tight hole", meaning that for proprietary business reasons the company is not releasing detailed information.

Two other wells have recently been drilled on the Sand Creek Prospect. The company participated for a 25% interest in the 7,500-foot Dunlap well located about one mile east of the Hudson well. The well encountered water and was a dry hole. On the southwest corner of the prospect, the company participated for a very small interest in the Pittman #1 well which electric logs indicate is productive. The well is awaiting pipeline connection.

Huffman further stated, "CREDO currently has five additional locations scheduled for drilling on the two prospects with interests ranging from 35% to 45%. We estimate that 10 to 20 additional wells will be drilled in the area and that CREDO will be involved in most of them."

Elsewhere in Ellis County, the company is currently drilling the third well on its Thurmond Prospect. The Thurmond-State #2 well targets the Morrow formation at 8,600 feet. CREDO is the operator and owns a 37.5% interest. In Beaver County, Oklahoma, CREDO is participating for a 15% interest in the Wilkerson #2 well which targets the Chester limestone at 7,600 feet. That well is scheduled to spud shortly. In Woods County, Oklahoma the company is continuing to participate in successful development drilling in the South Fork Field.

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.
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Publication:Business Wire
Geographic Code:1U7OK
Date:Jan 16, 2003
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