DENVER, COLORADO, Thursday, March 13, 2003 – CREDO Petroleum Corporation (NASDAQ:  CRED) today updated new developments on its two core projects—natural gas drilling along the Anadarko Shelf of northwestern Oklahoma and application of its patented Calliope Gas Recovery System.

The company’s drilling program centers on its 12,000 gross acre Sand Creek Prospect and its 3,000 gross acre Two Springs Prospect, both located in Harper and Ellis Counties, Oklahoma. Drilling targets the Morrow and Chester sands from 7,400 to 7,600 feet. In addition, the company has recently completed three wells on other prospects located in northwest Oklahoma.

James T. Huffman, President, stated, "We continue to be very pleased with our drilling results in this area and have aggressively accumulated a large acreage position. In total, we have drilled 14 wells on the two prospects of which 11 were completed as producers." Huffman further stated, "One well is currently drilling and eight additional wells are scheduled. Six of those wells will be drilled as soon as practical based on rig availability and various state regulatory approvals. Both prospects have ample room for more wells."

The previously announced Hudson Trust #1 well commenced pipeline sales in mid-February from Morrow sands totaling 14 feet. The naturally completed well (without acid or fracture treatments) produced at an initial rate of 1.5 million cubic of gas per day (MMcfgd), six barrels of condensate, and one barrel of water. Production has since declined to 500 thousand cubic feet of gas per day (Mcfgd) indicating that fracture stimulation will be required to optimize the production rate. CREDO owns a 32% interest in the well.

About one mile east of the Hudson Trust #1 well, the company is currently drilling the Arley #1 well. The well targets the Morrow sands at 7,400 feet. CREDO owns a 36% interest in the well and is the operator.

The Pittman #1 well, also previously announced, encountered 11 feet of Morrow sand and, after fracture stimulation, was placed on production in late January at an initial rate of 1.0 MMcfgd. Although the company owns a very small interest in the well, it provided significant data about the area.

Elsewhere on the Sand Creek prospect, the Hudson #1 well, located about one mile north of the Hudson Trust #1 well, produced water during testing and will be plugged. The well, which appeared to be productive based on electric logs and drilling data, apparently encountered a fracture system that caused water migration into the Morrow zones.

On the Two Springs Prospect, the previously announced Wills #1-10 well commenced pipeline sales in late January from a Morrow sand totaling seven feet. The naturally completed well produced at an initial rate of 800 Mcfgd. Completion information indicated substantial depletion in the Morrow sand, however, there is an up-hole zone that appears productive on electric logs and will be opened once Morrow production becomes uneconomic. CREDO owns a 36% interest in the well and is the operator.

Elsewhere on the Two Springs Prospect, the Brown #1 well, previously classified as a "tight hole", encountered nine feet of Morrow sand and, after fracture stimulation, commenced pipeline sales in mid-February at an initial rate of 300 Mcfgd. The company owns a 12.5% interest in the well.

Huffman further stated, "In order to maintain our drilling momentum, we are expanding into other areas of northwest Oklahoma and taking interests in prospects generated by other operators. This yielded good results in the first quarter, with completion of three new wells outside of the Sand Creek and Two Springs area."

In Beaver County, the company participated for a 15% interest in the 8,100-foot Wilkerson #2 well. The well encountered 36 feet of Chester limestone. It has been completed for production and should be connected to pipeline sales shortly. During testing, the well produced at an approximate rate of 3.0 MMcfgd.

Elsewhere in northwest Oklahoma, the company has participated in two wells that electric logs indicate are productive. Both wells are classified as "tight holes" due to competitive leasing situations. One of the wells is connected to the pipeline and is awaiting results of fracture stimulation. The company owns a 37.5% interest in the well. The other well is awaiting both pipeline connection and completion for production. The company owns a 30% interest in the well.

The company has recently installed its patented Calliope gas recovery system on two of the nine wells acquired for such applications late last year. Calliope was installed on the 11,100-foot Fee #37 well located in Hemphill County, Texas in mid-February. The well has produced 8.0 billion cubic feet of gas (Bcfg) and had been dead for about a year. Calliope immediately restored daily production to 250 Mcfg and six barrels of condensate, and added approximately 500 MMcfg to recoverable reserves. At today’s gas prices, the reserves have a gross value of about $3,000,000. CREDO owns an approximate 80% working interest and is the operator.

In early March, Calliope was installed on the 12,400-foot Horn #1 well located in Grady County, Oklahoma. The well has produced 12.9 Bcfg and had been dead for three years. Prior to being shut-in, the well apparently experienced a packer leak and soap was used to stimulate production. Both compromised the permeability of the reservoir. Nevertheless, Calliope immediately restored production to approximately 160 Mcfg per day and production is increasing as the well appears to be "cleaning-up" from the previous reservoir damage. Additional reserves added by Calliope could range up to 1.0 Bcfg depending on how the reservoir ultimately cleans-up. At today’s prices, 1.0 Bcfg has a gross value of about $6,000,000. CREDO owns an approximate 80% working interest and is the operator.

Work will commence next week to install Calliope on the 12,300-foot Meacham #1 well located in Custer County, Oklahoma. The well has produced 20 Bcfg and 322,000 barrels of oil, and is currently producing minor amounts of gas. Calliope reserves are expected to exceed 1.0 Bcfg. CREDO owns an approximate 60% working interest in the well and is the operator.

The company is also considering installing Calliope on its 18,400-foot Green Estate well located in Beckham County, Oklahoma. The well has produced 28.8 Bcfg and is currently dead. Testing and well data indicate that significant reservoir damage was caused by a previous workover. Thus, Calliope production could be significantly compromised. However, based on expected gas prices, estimated remaining reserves of over 1.0 Bcfg, and the potential for Calliope to clean-up the reservoir damage, an installation may be performed. The Green Estate would also provide the opportunity to test and operate Calliope at a new record depth. CREDO owns a 65% working interest in the well and is the operator.

Huffman further stated, "Calliope continues to prove its effectiveness in the most rigorous applications on completely dead gas wells that were given up on by other operators. Calliope returned the Fee and Horn wells to commercial production on its first day of continuous operations. We are very pleased with the technology, its flexibility, and its performance."

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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.