NEWS RELEASE

FOR IMMEDIATE RELEASE

CREDO PETROLEUM UPDATES BAKKEN AND THREE FORKS ACTIVITY

Initial Three Forks Completion Signals Additional Upside for the Company

Seven New Bakken and Three Forks Wells Currently Underway

DENVER, COLORADO, February 7, 2012 - Credo Petroleum Corporation (NASDAQ: CRED), an independent oil and gas exploration and production company with significant assets in the North Dakota Bakken/Three Forks, Kansas, Nebraska, the Texas Panhandle and Oklahoma, today provided an operations update.

Michael D. Davis, Chief Executive Officer (interim), stated, "Credo passed the milestone of becoming primarily an oil producer in the fourth quarter of fiscal 2011, just as oil began selling for five times more than natural gas on an energy equivalent basis. We will build further momentum in fiscal 2012 by setting new drilling records, with 85 gross (37 net) oil wells currently on our drilling schedule. As a result, our 2012 drilling budget of $35,000,000 is more than double last year. Sixty