DENVER, COLORADO, October 27, 2003 – CREDO Petroleum Corporation (NASDAQ: CRED) today updated developments on its Oklahoma drilling program, its Calliope Gas Recovery System and its natural gas hedging activities.

Since August, the seven new wells shown in the table below have been completed for production. They are expected to add substantially to the company’s production and reserves, which are currently at record levels.

                                Reported                 Working
Well Name                     Production Rate       Interest Ownership
---------------------         ---------------       ------------------
Gillenwaters #1-34(1)           1.1 MMcfgd(3)              34.0%
Easterwood #11-23(1)            2.1 MMcfgd                 24.0%
Deanna #1-15(1)                 2.0 MMcfgd                 37.0%
Ronnie #1-6(2)            Testing Significant Oil          60.0%
Glendena #2-5(2)                1.1 MMcfgd                 39.5%
Derby #1-22(2)                  0.7 MMcfgd                 36.0%
Daphne Jane #1-20(2)            0.5 MMcfgd                 12.0%

(1) Announced in September 15, 2003 Press Release
(2) Details provided in this Press Release.
(3) Million cubic feet of gas per day.

In Beaver County, Oklahoma, the company’s 7,700-foot Ronnie #1-6 well encountered two Chester zones totaling 27 feet and one Morrow zone. The Lower Chester zone is an oil zone that was recently fracture stimulated. It is currently being tested and is flowing and being swabbed at the rate of 15 to 20 barrels of oil per hour (350 to 400 barrels of oil per day). Initial production rates for oil zones are normally expected to be approximately 50% of swab rates. The Upper Chester and Morrow gas zones will be completed for production and commingled with the Lower Chester oil zone. They are expected to contribute significant gas production. The company owns 60% of the well and is the operator.

The Glendena #2-5 well was recently completed on the company’s 14,000 gross acre Sand Creek Prospect located in Ellis and Harper Counties, Oklahoma. It extended Morrow sand production south from the Glendena #1-5 well, which opened the current drilling play and has been an excellent well for the area. The Glendena #2-5 well was drilled to 7,700 feet and completed in three Morrow sands totaling 28 feet. After fracture stimulation in October 2003, the well is producing on a 25/64-inch choke at a daily rate of over 1.1 MMcfg. CREDO is the operator and owns a 39.5% working interest.

Three miles to the north, the Derby #1-22 well extended Morrow production west from the previously announced Easterwood #11-23 well. After fracture stimulation in October 2003, the well is producing on a 19/64-inch choke at a daily rate of approximately 700 Mcfg (thousand cubic feet of gas). CREDO owns a 36% working interest and is operator of the well.

On the west side of the Sand Creek Prospect, the Daphne Jane #1-20 was drilled to 7,550 feet and encountered 22 feet of Chester limestone. The well commenced production in October 2003 and is currently producing on an 18/64-inch choke at a daily rate of approximately 500 Mcfg from a "natural" completion. CREDO owns a 12% working interest in the well.

This year the company has installed its Calliope Gas Recovery System on five wells with a 100% success rate. Four of the wells were previously announced. Calliope was recently installed on a fifth well, and three additional wells are currently scheduled for installations.

A Calliope system was installed in October 2003 on the 8,200-foot Vierson well located in Blaine County, Oklahoma. The well had produced 7.7 Bcfg and was dead prior to the company taking over operations. Calliope is expected to increase daily production to between 150 and 200 Mcfg. The cost to install Calliope was approximately $350,000 and it is expected to add about 700 MMcfg to gross recoverable reserves. CREDO owns an approximate 80% working interest and is the operator.

In early November, a Calliope system is expected to be installed on the 8,750-foot Endicott well located in Blaine County, Oklahoma. The well had produced 8.5 Bcfg and was dead prior to the company taking over operations. CREDO owns an approximate 78% working interest and is the operator.

A third well, the 8,300-foot Patterson well located in Blaine County, Oklahoma, is currently being evaluated for a Calliope installation in late November. The well has produced 14.8 Bcfg and 72,000 barrels of oil and is currently dead. CREDO owns an approximate 80% working interest and is the operator.

The company has also recently acquired an 80% interest in a 10,000-foot well located in Canadian County, Oklahoma for installation of a Calliope system.

James T. Huffman, President, stated, "This year Calliope has added substantial gas production and reserves on wells with a variety of down-hole configurations that range in depth from 8,200 to 18,400 feet. Our 100% success rate further substantiates Calliope’s efficacy over a wide range of applications."

The company has hedged 80% to 85% of its estimated gas production for the months of November 2003 through March 2004 at an average NYMEX price of $5.27 per Mcf. Average gas prices in the company’s market areas are expected to be about 15% below NYMEX prices due to basis differentials and transportation costs.

"Because gas prices are the single most important driver of our financial results, we remain committed to periodic hedging as a tool to manage this critical element of our business," Huffman said. "We will continue to monitor the fundamentals that support gas prices and will consider additional hedging if the fundamentals weaken further."

"Our drilling and Calliope operations provide a unique mix of strategies to build high quality gas production and reserves at reasonable costs", Huffman said. "We have had an excellent year adding gas production and reserves from both our drilling and Calliope projects. These new wells are expected to considerably boost our production, which is already at record levels, and provide excellent momentum as we enter fiscal 2004."

*   *   *   *   *

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.