Replies to post #11 on Credo Petroleum (CRED)

[OilStockReport]

DENVER, Nov. 22, 2010 (GLOBE NEWSWIRE) -- Credo Petroleum Corporation (Nasdaq:CRED), an oil and gas exploration and production company with significant operations in the Rocky Mountain and Mid-Continent Regions, has launched a completely redesigned corporate website.

"Over the past three years, Credo has successfully transitioned from predominately natural gas to predominately crude oil production on a value basis," said Marlis E. Smith, Jr., CEO. "Thanks to the vision of our Board of Directors, we made the transition at an opportune time because oil is currently four times more valuable than natural gas on an energy equivalent basis. That makes a huge difference to our bottom line.

"Credo has now assembled significant undeveloped acreage positions in four separate oil plays located in Kansas, Nebraska, the Texas Panhandle and anchored by the Bakken horizontal drilling play in North Dakota. Although three of the plays are still in their infancy, our success is already evident in Credo's financial performance where, in 2009, oil revenue overtook natural gas revenue for the first time in the company's history.

"Our goal is to exploit the new acreage to take advantage of excellent oil prices. To accomplish that objective, we recently announced that Credo has more than doubled its drilling budget for 2011.

Smith continued, "With Credo's geographically diversified and rapidly expanding exploration program, I expect steady financial and operational gains. One of my objectives is to better communicate with the investment community. The website contains significantly expanded information about our drilling activities and our Calliope Gas Recovery System. The website is our initial step in a broader plan to better communicate Credo's story, including our aggressive transition to oil plays."

About Credo Petroleum: Credo Petroleum Corporation is an independent exploration, development and production company based in Denver, Colorado. The company has significant operations in the Williston Basin of North Dakota, central Kansas, the Anadarko Basin of North Texas and northwest Oklahoma, and in southern Oklahoma. Credo uses advanced technologies to systematically explore for oil and gas and, through its patented Calliope Gas Recovery System, to recover stranded reserves from depleted gas reservoirs.

[OilStockReport]

I see continued upside. What do you think?

Credo Petroleum (CRED) seems to be in a position for improvement. Credo has seen better times as it once traded at $30 a share. This company used to derive most of its revenue from natural gas. Credo is trying to change with the current pricing environment and is increasing oil production. Credo's areas of operation are:

Central Kansas Uplift - 150,000 Gross/90,000 Net Acres
N.W. Oklahoma - 75,000 Gross Acres
North Dakota - 7,000 Gross/5,734 Net Acres
Texas Panhandle - 3,000 Gross Acres
Southern Oklahoma - 4 Waterfloods
Although its Kansas acreage is worth a fraction of its Bakken, Credo is increasing production. It has had a 40% success rate, and has a completed well cost of $465,000. Credo estimates reserves per well of 42 MBO. Total net reserves of 1.6 million barrels of oil. Credo's Bakken acreage is a prime location. Acreages adjacent to its positions are owned by Marathon (MRO), XTO (XOM) and Williams (WMB). On November 15, 2010, Williams purchased 86,000 acres in the area for $11,000/acre. Credo maintains net reserves of 4.2 million Bbls and 3.6 Bcf are in its Bakken acres. The waterfloods in southern Oklahoma have a 400 Bopd with a 70% oil cut. Humphreys Prospect has net reserves of 640,000 Bbls and 10 Bcf. Credo has the ability to increase production and will be able to add gas production when pricing improves. For more information on this stock check out Credo Petroleum: Worth a Look.

P/E Ratio- 62
Price to Sales- 7.04
Price to Tangible Book- 1.87

[OilStockReport]

Their shift to oil could pay off.

Credo Petroleum (CRED) is another spec play I own. Over the past few years Credo has changed the focus of its business from natural gas to oil. Its has acreage in:

Central Kansas Uplift-150000 Gross Acres
NW Oklahoma-75000 Gross Acres
Southern Oklahoma-10000 Gross Acres
ND Bakken-7000 Gross Acres
Texas Panhandle-3000 Gross Acres
Its Bakken acreage is in a very good location. The Fort Berthold Indian Reservation is near some of the best wells to date in the play. It currently has 50 drillable spacing units. Locations will grow as Credo estimates more than one well will be drilled on each spacing unit. Its Kansas acreage provides low cost, repeatable projects with a very good return at today's oil prices. In 2010, Credo managed to create 59% of its revenue from oil. Credo's plan creates revenue from its Kansas holdings, to finance horizontal wells in other areas. Credo is not for the faint of heart with a market cap below $100 million, but there could be opportunity here. If Credo is able to create enough revenue to purchase acres in other plays, or if natural gas prices recover this stock's market cap could increase significantly.

[OilStockReport]

Credo Petroleum (CRED) is another company flying under the radar.Recent chart bottom and improved oil demand is positioning CRED to do very well in 2012.

It seems Credo is worth a look. Starting in 2006 and lasting a decade, Credo appreciated its stock price from around a half dollar to $30. It seems they were a natural gas company with Calliope, a natural gas recovery system.

Since then they have converted to oil in quick fashion, with a 150,000 gross acreage in Kansas and 7,200 gross acreage in the Bakken. They also have another 70,000 acres in Western Oklahoma and the Texas Panhandle that Credo has stated will start to drill as soon as gas prices improve. In January, Credo completed its third Bakken well. This created a large spike in stock price from around $8 to $12. It is currently trading around $9.50.