DENVER, COLORADO, Friday, October 11, 2002 – CREDO Petroleum Corporation (NASDAQ:  CRED) today updated its drilling results in the Northern Anadarko Basin of Oklahoma and provided current information regarding its hedging program and investments.

Two additional successful wells have recently been drilled on the company’s 2,900-acre Sand Creek Prospect and 2,300-acre Two Springs Prospect. Of the eight total wells drilled to date, seven have been successful.

The 7,400-foot Hudson #1 well is located about one mile north of the previously announced Weiszbrod #1 well on the Sand Creek Prospect. It encountered Morrow sands which electric logs indicated are productive. The well is currently classified as a "tight hole", meaning that for proprietary business reasons the company is not releasing detailed information about the well. It is awaiting pipeline connection prior to being completed for production. CREDO owns 39% and is the operator.

About five miles north on the Two Springs Prospect, the 7,300-foot Emet #1 well encountered nine feet of Morrow sand and three feet of Chester limestone which electric logs indicate are productive. This well is located about one mile east of the previously announced Wills #1 well. It is also awaiting pipeline connection. CREDO owns 35% and is the operator.

About one mile east of the Sand Creek Prospect, CREDO owns a 25% interest in the 1,920-acre Dunlap prospect. A well is currently drilling on the prospect that targets the Morrow and Chester formations at 7,400 feet.

James T. Huffman, President, stated, "Our activity level in this area continues to ramp-up. We are currently drilling one well, completing three new wells, and preparing to drill six additional wells. We expect the developing play to create additional drilling opportunities on our large acreage position in the area."

The company’s most recent natural gas hedge data shows 280 MMcfg hedged for the months of December 2002 through February 2003. This hedge is at an average NYMEX (Henry Hub, Louisiana delivery point) price of $4.19 per Mcf, and represents approximately 83% of the company’s total estimated gas production for those three months. Hedges for the months of October and November were closed prior to contract expiration and a $106,000 gain was realized. The company hedges only its Oklahoma production where the "basis" for its pipeline index prices is generally $.15 to $.30 below the Henry Hub.

"Since the current hedge was initiated in March 2001, CREDO has realized about $1,250,000 of hedging gains," Huffman said. "Our strategy is to hedge natural gas prices when fundamentals suggest impending price weakness so long as prices available to be hedged are adequate to ensure a reasonable return on our assets."

Huffman further stated, "Data reported by several sources indicates that demand for natural gas has increased over last year while domestic gas production has declined. This supply-demand imbalance together with a return to normal winter temperatures would be very bullish for natural gas prices, despite current high storage levels due to gas left over from last winter. Accordingly, we have reduced the company’s gas hedge, maintaining only the winter months at hedge prices above $4.00 per Mcf (Henry Hub Basis)."

Pending deployment into oil and gas assets, the company’s cash is primarily invested with money managers who specialize in short-term timing of mutual funds. The average return on CREDO’s investment portfolio through September 30, 2002 was approximately 3%. For fiscal 2001, the investment portfolio returned 4% and for fiscal 2000 it returned 14%. These positive returns compare favorably to very significant losses in all of the major stock market indexes during those periods.

"We are pleased with the performance of our investment portfolio, particularly in view of unfavorable market conditions over the past few years. We continue to believe that our investment strategy represents a responsible approach to cash management," Huffman said.

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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.