NEWS RELEASE

FOR IMMEDIATE RELEASE

CREDO PETROLEUM PROVIDES OPERATIONS UPDATE

Kansas and Nebraska Shallow Oil Drilling Success Continues

North Dakota Bakken Drilling Expected to Escalate Following Weather Delays

Texas Panhandle Horizontal Oil Production Continues to Increase

Successful Calliope Installation Completed

DENVER, COLORADO, June 14, 2011 – Credo Petroleum Corporation (NASDAQ: CRED), an independent oil and gas exploration and production company with significant assets in the North Dakota Bakken, Kansas, Nebraska, the Texas Panhandle and Oklahoma, today provided an operations update.

Marlis E. Smith, Jr., Chief Executive Officer, stated, “Our oil focused growth strategy is firmly on course with our horizontal drilling in the North Dakota Bakken and Texas Panhandle, combined with our shallow drilling plays in Kansas and Nebraska. Credo is adding high value oil production from new drilling as oil continues to command a three to one price advantage over natural gas.

“This press release updates our oil drilling operations, and highlights what we believe is a new field discovery in Kansas where Credo owns 47%. Based on our statistical success rates in Kansas and Nebraska, Credo is retaining increasingly larger interests in both drilling plays. In Kansas, most of our recent wells were drilled with interests averaging around 50%, and we are drilling with interests ranging from 50% to 70% in Nebraska. Our objective is to make each new discovery more meaningful to Credo through larger ownership interests.”

Excellent Drilling Success Continues in Kansas

The Company has just added three new producing wells, two of which are higher-ownership wells, in its Kansas shallow oil play. The new wells bring the total number of company wells drilled in the play to 79, of which about 40% have been completed as producers.

The Company has recently completed its first confirmation well to a new field discovery in Kansas. Seismic analysis indicates that the new field may ultimately contain four to six wells in the Lansing Kansas City formation. The 4,100 foot well was swabbed during completion operations and tested at the rate of 240 BOPD (barrels of oil per day). A pumping unit is being installed. The Company expects that, on pump, the well will initially produce about one-half its swab rate. Additional development drilling is scheduled for this summer. The Company owns a 46.5% working interest.

The Company has also completed two other new producers in Kansas. One of the wells initially tested at 50 BOPD from the Lansing Kansas City formation. Credo owns a 75% working interest and is the operator. The seismic survey is currently being evaluated for offset drilling potential. The second new well was also initially tested at 50 BOPD from the Lansing Kansas City formation. The Company owns a 12.5% interest in the well.

Nebraska Drilling Program Off to a Strong Start

In southwestern Nebraska, the Company has completed three of its first five wells for a 60% success rate. The Company owns a 70% interest in all of the wells and is the operator.

The Nebraska drilling play is an extension of the Company’s Central Kansas Uplift drilling play. To date, Credo has assembled approximately 35,000 net acres in southwestern Nebraska. A significant inventory of drilling prospects has already been generated and assembled utilizing a combination of detailed subsurface geology and advanced 3-D seismic technology to identify highly economic shallow oil targets. The Company is continuing to aggressively generate and lease additional prospects. Drilling commenced in the second quarter of 2011 and targets the Lansing Kansas City formation at about 4,000 feet. The Company has retained between a 50% and 70% working interest in the play in order to participate significantly in what it believes will be a very successful project.

Texas Panhandle Horizontal Oil Production Continues to Increase

In the Texas Panhandle, the Company owns an average 33% working interest in about 3,000 gross acres. As previously reported, the Company’s first horizontal well was drilled to a vertical depth of 7,600 feet and has an approximate 4,000