CREDO Logs Pay with its Glacier Well

CREDO Petroleum drills primarily for natural gas on its 40,000 gross acre inventory located along the northern shelf of the Anadarko Basin of Oklahoma. A second exploratory well was recently drilled on the company's Glacier Prospect located in Harper County, Oklahoma. As previously reported, the well has been completed for production and is awaiting pipeline connection. The well was classified as a tight hole. This release contains additional information about the well and the prospect together with updated information for the Gage Prospect.

The 7,600-foot Glacier #1-34 well encountered 11 feet of productive Morrow sand. After fracture stimulation, the well was tested at a daily rate of 4.8 MMcfg (million cubic feet of gas) on a 20/64ths choke and a flowing tubing pressure of 1,700 psi. The pressure in the productive interval is virgin indicating a new field discovery. CREDO owns a 70% working interest and is the operator.

The company has expanded its acreage position around the discovery to approximately 4,500 gross acres. The well is awaiting construction of a two-mile pipeline, and is expected to be connected for production in mid-February. A north step-out is scheduled for May.

When the company assembled the prospect, the nine-section area was sparsely drilled with only one marginal producer and two dry holes. Seven of the nine sections, including Sections 33 and 34, were undrilled. The company's first well on the prospect, Glacier #1-33, hit the edge of a Morrow channel and encountered two feet of porous Morrow sand. The well was plugged because its potential did not justify the cost of building a pipeline. However, information obtained from the well led to drilling the Glacier #1-34 discovery.

James T. Huffman, President, stated: "All the information obtained to date indicates that the Glacier #1-34 should be an excellent well. However, because this is a wildcat area, several months of production will be required before an initial estimate can be made of reservoir size and recoverable reserves."

Approximately 25 miles to the south on the company's 1,280 gross acre Gage Prospect, the previously announced Skyler #1-6 well continues to produce at a high rate. Daily rates approaching 2.8 MMcf, 10 to 12 barrels of oil, and 10 to 15 barrels of water. A west offset is scheduled to spud in two weeks. The company owns a 51% working interest and is the operator.

Huffman further stated: "Our recent Gage and Glacier Prospect discoveries continue to demonstrate the excellent potential of our Anadarko Shelf acreage position. These very promising wells should provide a significant boost to our 2005 production. The Glacier Prospect discovery, in particular, is a tribute to the dedication and scientific excellence of our exploration staff."