DENVER, COLORADO, August 13, 2003 – CREDO Petroleum Corporation (NASDAQ:  CRED) today updated developments on its two core projects—drilling in the Northern Anadarko Basin of Oklahoma and application of its Calliope Gas Recovery System.

The company commenced a five-well drilling program in early July. Three of the wells (Gillenwaters #1-34, Derby #1-22 and Glendena #2-5) have been drilled. Drilling data and electric logs indicate that the wells are productive and they are awaiting pipeline connection. The remaining two wells (Ronnie #1-6 and Norman Trust #1-10) are next in line to be drilled. CREDO is operator of the wells and owns 34% of the Gillenwaters, 36% of the Derby, 40% of the Glendena, 58% of the Ronnie and 51% of the Norman Trust. These wells are currently classified as "tight holes" for proprietary and competitive business reasons.

In addition, five previously announced wells continue to be classified as "tight holes". These wells and the company’s ownership are the Deanna #1-15 (37%), Easterwood #11-23 (24%), Daphne Jane #1-20 (12%), Blackstone #1-8 (7%) and Patch #1-17 (12%). The Deanna and Easterwood wells have recently commenced production. The other wells are currently awaiting pipeline connection prior to being completed for production.

James T. Huffman, President, said "We are pleased with our drilling results and expect the new wells to boost production and cash flow. To date, we have drilled 23 wells on our Sand Creek and Two Springs Prospects in Ellis and Harper Counties, Oklahoma of which 17 have either been completed as producers or are awaiting completion."

Huffman further stated, "CREDO has a competitive advantage in the area due to our high level of drilling activity. We request our shareholders’ patience regarding drilling details as we seek to protect our proprietary information in order to maximize our competitive position. Information on many of these wells is expected to be released within four to six weeks."

Since the company’s last news release, it has acquired additional leases on the prospects totaling 4,000 gross acres. The Sand Creek Prospect currently contains over 17,000 gross acres and the Two Springs Prospect is approximately 6,000 gross acres. The company expects significant additional drilling on the prospects.

The four Calliope systems installed earlier this year are currently producing 1.2 MMcfg (million cubic feet of gas) per day. The company estimates that they have developed approximately 4.0 Bcfg (billion cubic feet of gas) of proved, developed producing reserves. At today’s gas prices, the total value of those reserves is about $20,000,000. CREDO owns an average 73% working interest and 60% net revenue interest in the wells.

The company is preparing to install Calliope systems on three additional wells during the next few months. All of the wells are located in Oklahoma at depths ranging from 8,200 to 8,700 feet. These wells are intended to demonstrate how shallower wells can benefit from Calliope. CREDO owns approximately 75% of each well.

"We have moved beyond prototype testing and are fortifying Calliope’s track record on a wide range of applications," Huffman said. "With that in mind, this year we have installed Calliope on one marginal and three completely dead wells ranging in depth from 11,100 to 18,400 feet. The results have been excellent with a 100% success rate, average daily production of 300 Mcfg (thousand cubic of gas) per well, and average developed reserves of 1.0 Bcfg per well."

Huffman further stated, "Our objective is to identify and execute the business plan that is most likely to maximize Calliope’s value. Accordingly, in addition to fortifying Calliope’s track record and finalizing a multimedia presentation about Calliope, we have recently commenced an independent marketing study which is expected to be complete in six to eight weeks."

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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.