DENVER, COLORADO, January 6, 2005 - CREDO Petroleum Corporation  (Nasdaq:  CRED) today reported record production and reserves for its fiscal year ended October 31, 2004.

Proved reserves rose 10% to a record 17.7 Bcfe (billion cubic feet equivalent) at year-end 2004. Natural gas accounted for 86% of total reserves. The company added 3.6 Bcfe of new reserves, replacing 183% of its 2004 production.

Of the total proved reserves, 93% are classified in the proved developed category. The company generally includes only minimal proved undeveloped reserves for offset drilling locations or Calliope candidate wells.

Fiscal 2004 production rose 18% to a record 1.96 Bcfe. Production has increased an average of 23% for each of the last three years, setting successive new annual records.

James T. Huffman, President, stated: "This is our tenth consecutive year of record year-end reserves, and the fourth consecutive year of record production. This significant growth has been by the drill bit and from application of our Calliope Gas Recovery System. These two core projects have again proven to be both repeatable and scaleable."

The company expects to report fiscal 2004 financial results during the second week of January. Reserve values, finding costs and operating performance information will also be reported at that time.

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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.