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Credo Petroleum Corp. (CRED) Provides Update on Nebraska Oil Drilling Program, Three of Four Wells Successful

May 18, 2011 2:52 PM ETFOR
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Credo Petroleum, the innovative exploration and production company which employs advanced technologies like their patented Calliope Gas Recovery System for pulling out stranded gas reserves and has substantial acreage in the Williston Basin/Bakken (North Dakota), Anadarko Basin (Texas/Oklahoma), central Kansas and southern Oklahoma, reported today updated drilling results at the Company’s Nebraska drilling play.

The Nebraska acreage is an extension of the Company’s Central Kansas Uplift drilling play (40% success rate) and represents the final piece in what is now a 40k-acre puzzle that CRED has assembled in southwestern Nebraska. Between rigorous subsurface geological analysis and more advanced 3D seismic, CRED is currently pushing hard to map out the most economically viable shallow targets and is continually generating new prospects at an excellent pace.

CEO of CRED, Marlis E. Smith, Jr., explained that this update on the new shallow oil drilling play in Nebraska is excellent news for the Company and its shareholders, as CRED has hit three of the first four wells in which the Company owns a 70% interest. Smith noted the initial/flush production rate data indicating some 350 BOPD total and indicated that this latest success story would be an extremely positive addition to the Company’s program of ongoing/active drilling of horizontal (ND Bakken/Texas Panhandle) and conventional wells (Kansas).

The primary of the wells, the third in the series of completion, was drilled as an extension to an existing field with 200k barrels of production and currently the site looks to be perfectly suitable for a future waterflood project when primary production has ceased.

Drilling for the Lansing Kansas City formation (roughly 4k feet down) began in Q1 2011 and the Company has maintained a 50-70% working interest throughout the play, as CRED management feels strongly that this will be a major site and overall a very profitable resource project. This diverse fundamentals footprint makes CRED a very able-footed player in domestic energy production, a game which is really heating up in recent years.

With the recent completion of two new discoveries, as well as a single field extension well, CRED is well on its way to adding significantly more production potential to an already massive inventory of sites. While these new wells are all located in Nebraska, the Company has chosen not to disclose the exact location at this time due to proprietary business/competitive reasons.

These new discoveries were made via re-entry into abandoned wells on separate prospects and represent a 100% success rate, clearly validating Credo’s use of advanced geological and engineering concepts, even in mature areas that have been abandoned.

For more information on Credo Petroleum, please visit the Company’s website at: credopetroleum.com

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