3-D Geophysical, Inc. announces results for three months and twelve months ended December 31, 1996.

ENGLEWOOD, Colo.--(BUSINESS WIRE)--March 6, 1997--3-D Geophysical, Inc. (NASDAQ:TDGO) today announced results of operations for the three and twelve months ended December 31, 1996.

The Company's net sales increased to $15.6 million for the three months ended December 31, 1996 from $2.7 million for the three months ended December 31, 1995. The Company had a net loss of $1.2 million for the three months ended December 31, 1996 compared to net income of $0.3 million for the year ago period. Primary earnings per share, which includes common stock equivalents and is calculated using the treasury stock method, was ($0.15) for the three months ended December 31, 1996.

For the year ended December 31, 1996, the Company's net sales increased to $51.8 million from $9.8 million in the prior year. Net income after extraordinary items decreased to $0.9 million or $0.12 per primary share from $1.6 million for 1995.

Results for the fourth quarter of 1996 were adversely affected by a number of factors, including the recognition of a reserve for unrecovered costs relating to a postponed contract in Peru, lower than anticipated margins in the Company's Mexican operations and increased costs in the U.S. due to shipping delays in transporting equipment to Alaska.

On January 31, 1997, Atlantic Richfield Company (ARCO) informed the Company that ARCO has delayed a seismic exploration contract in Peru for an indeterminate time. The Company had incurred substantial costs in establishing a branch in Peru, including hiring a field crew to complete this contract. As a result, the Company has recorded an after-tax reserve of $740,000 or ($0.09) per share for costs which might not be recovered from ARCO.

The Company's Mexican subsidiary recorded a loss of $524,000 or ($0.07) per share in the quarter. The loss resulted from higher than anticipated costs to complete the Company's first 3-D seismic survey in Mexico and to complete a contract for recording services in Southern Mexico. Fourth quarter results do not include the results of J.R.S. Exploration, Ltd. A definitive purchase agreement to acquire J.R.S. Exploration, Ltd. was signed on December 10, 1996, and the acquisition closed on January 27, 1997.

To improve cost performance and increase productivity in Mexico, the Company has increased its training for Mexican crews, hired an experienced Vice President of Operations for Latin America and a Technical Director experienced in 3-D surveys and has improved its bidding procedures.

At December 31, 1996, the Company's backlog that is expected to be completed in 1997 (including backlog of the recently acquired J.R.S. Exploration, Ltd.) was approximately $46 million. Of this backlog, approximately $20 million relates to services to be performed in Alaska, $11 million relates to Mexico, $9 million relates to the United States (other than Alaska) and $6 million relates to Canada. Backlog at February 28, 1997 was approximately $53.5 million, including $44.4 million that is expected to be completed in 1997. This backlog consists of written orders or commitments, however such contracts for services are occasionally varied or modified by mutual consent and, in many instances, are subject to cancellation by the customer on short notice without penalty.

On a proforma basis, assuming all operations were acquired on January 1, 1995, the Company's proforma net sales increased to $15.6 million for the three months ended December 31, 1996 from $12.2 million for the same period in the prior year. Proforma net income declined to a net loss of $1.2 million or ($0.15) per share for the three months ended December 31, 1996 from a profit of $0.2 million or $0.04 per share for the same period in the prior year.

For the year ended December 31, 1996, the Company's proforma net sales increased to $55.6 million from $37.8 million for the year ended December 31, 1995. Proforma net income after extraordinary items decreased to $0.6 million or $0.08 per share for the year ended December 31, 1996 from $0.7 million or $0.11 per share in the same period in the prior year. The proforma information is not necessarily indicative of actual results that would have been achieved if the operations had been acquired on January 1, 1995.

Headquartered in Englewood, Colorado, 3-D Geophysical, Inc. is a leading provider of land-based seismic data acquisition services in the United States, Canada and Mexico. -0-

                        3-D GEOPHYSICAL, INC.
        CONDENSED RESULTS AND PRO FORMA RESULTS OF OPERATIONS
                           (UNAUDITED)

                  in Thousands, Except per Share Amounts


                         For the Three Month Period Ended December 31
                             As Reported              Pro Forma
                          1996         1995        1996       1995
Net Sales              $ 15,603     $ 2,668      $ 15,603   $ 12,166
Net Income (Loss)     ($  1,188)    $   261     ($  1,188)  $    233
Earnings (Loss) per
 share                   ($0.15)         --        ($0.15)     $0.04
Primary shares
 outstanding(a)           8,031          --         8,031      6,232


                         For the Fiscal Year Ended December 31
                              As Reported            Pro Forma
                           1996         1995       1996       1995
Net Sales              $ 51,754      $ 9,825    $ 55,577   $ 37,835
Extraordinary item,
 net of tax            $     57           --    $     57        --
Net Income (Loss)      $    893      $ 1,607    $    588   $    703
Earnings (Loss) per
 share                    $0.12          --        $0.08      $0.11
Primary shares
 outstanding(a)           7,224          --        7,234      6,232


(a) Primary shares outstanding includes common share equivalents and
    is calculated using the treasury stock method.

CONTACT: Company: Agency:

Ronald L. Koons, CFO  George Strauss/Judith Driver

3-D GEOPHYSICAL, INC. STRAUSS GLOBAL PUBLIC RELATIONS 

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