CREDO Announces Deeper Pool Discovery in Major County, Oklahoma

  
    
  
  
    
      CREDO Petroleum Corporation (NASDAQ:CRED) today announced a deeper pool 
      discovery from the Hunton formation in its Ball #1-18 well.
    
    
      The 9,750-foot Ball well is located on the company’s 1,280 gross acre 
      PoolProffitt prospect. Electric logs and drilling and completion data 
      indicate that the Chester, Mississippian and Hunton formations are 
      commercially productive. The company owns a 50% working interest and is 
      the operator.
    
    
      The Hunton formation is the deepest productive zone and contains 13 feet 
      of highly porous and permeable dolomite. After perforation and acid 
      breakdown, the Hunton zone kicked-off flowing. During the final 24-hour 
      test, the well produced 535 barrels of oil and an estimated 1.0 to 2.0 
      MMcfg (million cubic feet of gas). Shut-in casing and tubing pressures 
      are 2,600 psi, indicating virgin bottom-hole pressure. The well is 
      currently shut-in for installation of production equipment.
    
    
      In addition to the Hunton formation, the company plans to perforate and 
      produce over 150 feet of Mississippian formation and 35 feet of pay with 
      excellent porosity in the Chester formation. However, because the Hunton 
      zone flowed oil at high rates with virgin pressure, completion of the 
      up-hole zones will be delayed in order to more fully evaluate the Hunton 
      zone potential.
    
    
      James T. Huffman, CEO, stated, “It is very unusual for a well to flow 
      oil from a depth of 9,300 feet. The high production rate indicates 
      outstanding reservoir permeability and porosity as well as excellent 
      pressure.” Huffman further stated, “Our Pool-Proffitt prospect has 
      multiple productive intervals in the Hunton, Mississippian, Chester, 
      Inola and Red Fork formations which we estimate will require 10 to 
      12 wells to fully develop.”
    
    
      About one mile to the north of the Ball well, the Lemmons #1-7 is 
      currently being completed in the Mississippian and Chester formations. 
      CREDO owns a 73% working interest and is the operator. Elsewhere, the 
      company is currently completing a wildcat well on a 2,150 gross acre 
      prospect located on the Central Kansas Uplift in which it owns an 85% 
      working interest. The well continues to be classified as a ”tight hole”, 
      meaning that detailed information is not being released for proprietary 
      business reasons. In southern Oklahoma, drilling is complete and 
      production casing has been set on a high potential oil well in Carter 
      County in which the company owns a 44% working interest. The Schaff #3 
      is a twin well to the Schaff #1 which has produced 235,000 barrels of 
      oil. The new well will develop two deeper Deese formation oil sands and 
      the Woodford formation, both of which electric logs indicate 
      are productive. Completion operations will commence this week.
    
    
      Huffman further stated, “We have recently drilled four successful wells 
      in Oklahoma and Kansas in which CREDO owns very substantial working 
      interests, ranging from 44% to 85%. All of the wells are currently in 
      various stages of being completed for production. The drilling and 
      completion data looks very promising, and we believe that these wells 
      have the potential to significantly increase our production and 
      reserves. In addition, offset drilling is scheduled on three of the 
      wells.”
    
    
      For more information about the company, visit http://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 Global Market” 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. 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.