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SEITEL INITIATES STRATEGIC ACTIONS RELATED TO EXPANSIONS: APPOINTS FRAME CEO, CALVERT, COO; AUTHORIZES SALE OF STOCK TO MANAGEMENT

SEITEL INITIATES STRATEGIC ACTIONS RELATED TO EXPANSIONS: APPOINTS
 FRAME CEO, CALVERT, COO; AUTHORIZES SALE OF STOCK TO MANAGEMENT
 HOUSTON, July 27 /PRNewswire/ -- Seitel, Inc. (NYSE: SEI, SEI.F), a leading provider of seismic data to the petroleum industry, announced that its board of directors has initiated three strategic actions related to major expansions that the company is embarking on this year.
 The board appointed Paul A. Frame, who has been president and chief operating officer, to the position of chief executive officer. It also appointed Horace A. Calvert, who has been executive vice president, to serve as chief operating officer.
 "These promotions reflect the significant contributions that both Mr. Frame and Mr. Calvert have made to Seitel's development and, moreover, to the fact that they are leading our company's major expansions into the advanced three-dimensional seismic field and into the international marketplace," said Herbert M. Pearlman, who had served as chief executive officer and will continue to serve actively as chairman, concentrating on strategic development.
 Management Buys Stock
 In another development, Seitel's operating management has agreed to purchase a total of 400,000 shares of the company's stock, through the sale by Seitel of newly issued stock, at the prevailing market price of $5.375 per share, amounting to about $2.2 million. Frame and Calvert each will purchase 100,000 shares, and 16 other company employees will buy a total of 200,000 shares.
 "The operating executives of Seitel wanted to make a sizable investment in the company, because they believe the stock is presently undervalued by the market, given the expansions being embarked upon and the 'annuity' value of our company's greatly expanding data library," said Frame.
 "The board decided that the sale of stock to employees was an effective way of enabling all operating executives to make a further equity investment in the future growth that they are spearheading for Seitel," added Pearlman.
 Change in Dividend Policy
 Pearlman also reported that the current sluggishness in the domestic petroleum industry has presented Seitel with opportunities to expand a key asset, its seismic-data library, through strategic acquisitions. As a result, Seitel's board of directors has decided to curtail the payment of the company's modest quarterly cash dividend of $.025 per share for the time being, and to utilize the capital to grow its data base. The board will review annually if it might be prudent to reinstate a cash dividend in the future.
 At the same time, the board has changed the payment frequency of its stock dividend from quarterly to annually, with the next one to be paid next year. The board said it will decide later whether to maintain the stock dividend at a 4 percent annualized rate or to possibly increase it.
 "It was decided to change the stock dividend to an annual payout to eliminate the necessity of making quarterly accounting adjustments during the year, which an increasing number of shareholders asked us to alleviate," Pearlman explained.
 The company's last quarterly cash dividend of $.025 per share and a 1 percent quarterly stock dividend were paid July 8, 1992.
 Seitel both creates on a proprietary basis and markets from its library high-resolution seismic surveys, geoscientific information fundamental to the exploration and development of crude oil and natural gas.
 This year, the company is expanding into the international arena and into the creation of three-dimensional (3D) seismic surveys, which provide a more detailed depiction of the Earth's subsurface than two- dimensional (2D) seismic data that Seitel has concentrated on until now.
 In addition, within the past four weeks, Seitel announced two library acquisitions that have more than doubled the total amount of seismic surveys in its marketing base to in excess of 400,000 miles.
 -0- 7/27/92
 /CONTACT: Jay M. Green, director-investor relations of Seitel, 203-629-1400/
 (SEI) CO: Seitel Inc. ST: Texas IN: OIL SU:


KD -- NY046 -- 3443 07/27/92 10:56 EDT
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Publication:PR Newswire
Date:Jul 27, 1992
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