CREDO Petroleum Updates Information Regarding Its Natural Gas Price Hedges

Business Wire, August 8, 2007

DENVER -- CREDO Petroleum Corporation (NASDAQ: CRED) today updated information regarding its hedges for future sales of natural gas production.

James T. Huffman, President, said, "For the first 10 months of fiscal 2007, the company has realized hedging gains totaling $1,414,000. We have a longstanding policy of actively managing natural gas prices through hedging, and we have demonstrated the ability to use hedging to effectively manage price risks. This is critical to our business because natural gas prices have an enormous impact on CREDO's financial performance."

The following table shows realized hedging gains and losses on closed contract months.

Month          <                 <  Mcf Per Month      <
Price(NYMEX Base)

Gain (Loss)
               <                 <                     <



November 2006  <                 <  180,000            <
$6.50

$(118,000)
December 2006  <                 <  150,000            <
$8.58

$71,000
January 2007   <                 <  150,000            <
$9.17

$443,000
February 2007  <                 <  150,000            <
$9.35

$265,000
March 2007     <                 <  180,000            <
$8.94

$214,000
April 2007     <                 <  160,000            <
$8.12

$111,000
May 2007       <                 <  150,000            <
$7.81

$42,000
June 2007      <                 <  150,000            <
$7.80

$18,000
July 2007      <                 <  150,000            <
$7.85

$141,000
August 2007    <                 <  160,000            <
$7.38

$227,000

"Going forward, we have established hedges at very robust prices compared to historical monthly NYMEX prices," Huffman said. "Excluding the aftermath of Hurricane Katrina, our monthly hedge prices exceed the historical NYMEX closing price at contract expiration in all but one month. These hedges secure excellent prices for the remainder of fiscal 2007 and the first two quarters of fiscal 2008."

The following table shows CREDO's hedged production volumes and the average hedge price for open contracts as of July 31, 2007.

Month           <                 <  Mcf Per Mo-

NYMEX Price


                <                 <




September 2007  <                 <  120,000

$7.96


October 2007    <                 <  130,000

$8.07


November 2007   <                 <  130,000

$8.71


December 2007   <                 <  150,000

$9.24


January 2008    <                 <  150,000

$9.53


February 2008   <                 <  150,000

$9.52


March 2008      <                 <  140,000

$9.28

Volumes hedged are estimated to range from 65% to 80% of the company's production base without taking into consideration estimates of new production from future operations. Depending on changes in the natural gas futures market and management's assessment of the underlying fundamentals affecting natural gas prices, the company may either increase or reduce the hedge positions in the future without notice.

All of the open hedges are indexed to the NYMEX and are represented by short positions. Field prices in the company's principal areas of operations (primarily Oklahoma) are expected to range from $0.75 to $1.10 below NYMEX prices.

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 Capital Market" section of The Wall Street Journal.

This press release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements included in this press release, other than statements of historical facts, address matters that the company reasonably expects, believes or anticipates will or may occur in the future. Such statements are subject to various assumptions, risks and uncertainties, many of which are beyond the control of the company. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those described in the forward-looking statements. Investors are encouraged to read the "Forward-Looking Statements" and "Risk Factors" sections included in the company's 2006 Annual Report on Form 10-K for more information. Although the company may from time to time voluntarily update its prior forward looking statements, it disclaims any commitment to do so except as required by securities laws.