NEWS RELEASE

FOR IMMEDIATE RELEASE

MICHAEL DAVIS APPOINTED CHIEF OPERATING OFFICER
AND INTERIM CHIEF EXECUTIVE OFFICER

DENVER, COLORADO, January 18, 2012 - Credo Petroleum Corporation (NASDAQ: CRED), an independent oil and gas company with significant assets in the North Dakota Bakken and Three Forks formations, Kansas, Nebraska, the Texas Panhandle and Oklahoma, reported today that Michael D. Davis, its Vice President of Land & Business Development, has been promoted to the position of Chief Operating Officer. Mr. Davis will also serve as Interim CEO when, as previously reported, Marlis E. Smith, Jr. steps down at the end of January to return to full time management of his personal oil and gas business. Mr. Smith will continue to serve as a member of the Board of Directors.

Mr. Davis, 52, has over 30 years of experience in the oil and gas industry. Prior to Credo, Mr. Davis served as Manager of Acquisitions & Divestitures at privately held Aviva, Inc. where he managed the company's oil and gas acquisition and divestiture activities covering over 6,000 properties throughout 24 states. Previous to Aviva, Mr. Davis served as Vice President of Land & Business Development at DRM Energy Corporation where he was responsible for corporate business development and strategic planning for the expansion and development of E & P opportunities in the domestic U.S. on behalf of a multi-billion dollar international joint venture group comprised of Neumin Production Company (USA), Formosa Petrochemical Corporation (FPCC