Credo Petroleum Corp. provided an update on its horizontal Bakken drilling project. Credo entered the horizontal Bakken oil play in 2008 as part of its ongoing strategy to focus on developing oil production and reserves. To date, the company has acquired 6,100 gross (5,000 net) acres. All of the leases are located on the western portion of the Fort Berthold Indian Reservation, generally south and west of the highly prolific Parshall Field. Credo's acreage currently includes approximately 30 potential drilling locations based on 640 acre spacing units. Other significant leasehold owners in the area of the company's leases include EOG, XTO, Petro-Hunt, Questar, Marathon, Kodiak, Peak and Zenergy. The company's first horizontal Bakken well, Petro-Hunt 148-94-17D-08-1H ('Petro-Hunt 148'), is currently drilling to confirm the productive potential of the middle member of the Bakken shale on the southwest portion of the Reservation. The horizontal well is located on a 1,280 acre spacing unit and is planned for a long (10,000-foot) lateral. This well is located in the same township where three Bakken discoveries have recently been made by Peak Exploration, one just a mile to the east. The well is also about 10 miles west of a recent Kodiak discovery that reported initial production of 2,200 barrels of oil per day from two laterals.

Credo Petroleum Corp. reported financial results for the third quarter and nine months ended July 31, 2009. For the quarter, the company's net income was $353,000 or $0.03 per basic and diluted share, compared to net income of $3,343,000 or $0.34 per diluted share last year. Production increased 6% compared to last year, however, substantially lower price realizations for both oil and natural gas caused revenue to fall 50%, leading to the decrease in quarterly earnings. Revenue fell to $2,837,000 compared to $5,646 000 last year. Loss from operations was $542,000 compared to profit from operations of $3,421,000 a year ago. Profit before income taxes was $580,000 compared to $4,607,000 a year ago. For the nine months, the company reported a net loss of $14,248 000 or $1.38 per basic share. The loss resulted from a $15,038,000 non-cash, after tax reduction in the book carrying value of oil and gas properties and long lived assets. For the same period last year, net income was $4,036,000 or $0.42 per diluted share. Lower product prices caused revenue to fall 49% to $7,298,000 for the first nine months compared to $14,321,000 last year. Loss from operations was $25,201,000 compared to profit from operations of $7,810,000 a year ago. Loss before income taxes was $23,356,000 compared to profit before income taxes of $5,595,000 a year ago. Capital spending for oil and gas drilling activities and property acquisitions through July 31, 2009 totaled 11,299,000, including $1,923,000 paid to purchase acreage in the North Dakota portion of the horizontal Bakken oil play. In addition, $4,400,000 was paid to purchase all of the underlying patents related to the Calliope Gas Recovery System.

Credo Petroleum Corp. announced that James T. Huffman plans to retire as Chief Executive Officer at the end of 2009. Mr. Huffman has informed the Board of Directors that he would like to retire at year-end. Accordingly, the Board has initiated the process to search for a new CEO. In order to provide an orderly transition, Mr. Huffman will continue in his present executive capacity until a new CEO is selected and joins the company. Mr. Huffman will remain as a Director of the company and, subject to Board approval, will continue to serve in the capacity as Chairman of the Board of Directors.