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SEITEL REPORTS SECOND QUARTER RESULTS; ANNOUNCES COMMENCEMENT OF ITS FIRST 3D SEISMIC SURVEY

 SEITEL REPORTS SECOND QUARTER RESULTS; ANNOUNCES COMMENCEMENT
 OF ITS FIRST 3D SEISMIC SURVEY
 HOUSTON, July 27 /PRNewswire/ -- Seitel, Inc. (NYSE: SEI and SEI.F), a leading provider of seismic data to the petroleum industry, today reported operating results for the second quarter and first half ended June 30, 1992 that were below year-ago periods, as had been previously forecast by the company.
 Seitel also announced that it plans to commence next month the first three-dimensional (3D) seismic survey conducted under its supervision, which will add to the company's growing 3D data library.
 For the second quarter, revenues amounted to $4.3 million compared to a record $7.8 million in the 1991 period, which was enhanced by delayed revenues from data-creation programs that were not completed in last year's first quarter due to inclement weather conditions. Net income in the 1992 second period was $480,293, equal to $.09 per share, vs. the record $1,609,970, or $.30 a share, a year ago.
 For the first half of 1992, revenues totaled $10.2 million compared to the record $13.4 million last year. Net income in the first six months totaled $1.5 million, equal to $.27 a share, vs. the record $2.9 million, or $.54 per share, in the 1991 opening half.
 The 1992 per share amounts are based on 4 percent more weighted average shares outstanding than in the respective year-ago periods.
 Paul A. Frame, president of Seitel, said, "As we have previously reported, our company is focusing the majority of both its marketing and technical resources on several major expansions -- including recent moves into the international marketplace and our entry into the creation of 3D seismic surveys.
 "This year's second quarter and first half were below the year-ago periods because of a strategic decision to limit our investment in domestic 2D data creation and to concentrate primarily on the expansions for the time being. Our thinking has been influenced by the fact that the U.S. petroleum market has been very sluggish so far this year and international markets and domestic 3D are much more active," explained Frame.
 Stronger Second Half Expected.
 "Our expansion efforts will start to contribute to operating results in this second half, which should be stronger than the first half. And the combined effect of our expansions should result in a major contribution to earnings and revenues starting next year," he added.
 In April, Seitel launched both its first overseas and first offshore seismic creation program in the U.K. Irish Sea. License-sales from the Irish Sea survey, which is a high-resolution, two-dimensional (2D) program conducted in joint venture with a British-based partner, are expected to start to flow in during the second half.
 At the end of June, Seitel acquired in excess of 13,000 miles of high-grade 2D seismic surveys of Canada, which marks the company's entry into the active Canadian petroleum-exploration market.
 Last week, Seitel acquired from Teledyne, Inc. a large seismic-data library that encompasses more than 230,000 miles of data, largely offshore in the Gulf of Mexico, including approximately 300 square miles (covering in excess of 28,000 linear miles) of 3D surveys. Three- dimensional data provide a more detailed depiction of the Earth's subsurface than two-dimensional seismic surveys.
 Library Base More Than Doubled.
 The two new data acquisitions, combined with a joint-venture library it has with Digicon Geophysical Corp., bring the total amount of seismic surveys now in Seitel's marketing base to in excess of 400,000 miles, more than double what it was previously.
 Seitel both creates on a proprietary basis and markets from its library high-resolution seismic surveys, geoscientific information fundamental to the exploration of crude oil and natural gas. The company's clients include the major petroleum producers, large and small independent oil and gas explorationists, and a growing number of foreign companies.
 SEITEL, INC.
 Consolidated Condensed Statements of Operations
 (unaudited)
 Three Months Ended June 30,
 1992 1991
 Total revenues $4,316,486 $7,773,753
 Amortization of data banks 1,596,601 2,810,094
 Selling, general and
 administrative expenses 1,567,797 2,276,425
 Depreciation expense 56,352 63,535
 Interest expense 411,228 209,675
 Interest income (21,305) (25,325)
 Total expenses 3,610,673 5,334,404
 Income before provision for
 federal income taxes 705,813 2,439,349
 Provision for federal income taxes 225,520 829,379
 Net income $ 480,293 $1,609,970
 Net income per share (A) $ .09 $ .30
 Weighted average number of
 shares outstanding (A) 5,530,454 5,304,578
 Six Months Ended June 30,
 1992 1991
 Total revenues $10,212,348 $13,440,130
 Amortization of data banks 3,765,086 4,539,400
 Selling, general and
 administrative expenses 3,469,813 4,124,221
 Depreciation expense 111,817 111,188
 Interest expense 666,819 413,030
 Interest income (31,756) (69,191)
 Total expenses 7,981,779 9,118,648
 Income before provision for
 federal income taxes 2,230,569 4,321,482
 Provision for federal income taxes 748,511 1,469,304
 Net income $ 1,482,058 $ 2,852,178
 Net income per share (A) $ .27 $ .54
 Weighted average number of
 shares outstanding (A) 5,491,342 5,271,109
 (A) Earnings per share are based on the weighted average number of outstanding shares of common stock during the respective periods, including all common equivalent shares and other potentially dilutive securities, such as the company's Convertible Subordinated Debenture.
 All number of shares and per share amounts have been adjusted to reflect the company's 4 percent annual stock dividend, which has been paid on a quarterly basis.
 -0- 7/27/92
 /CONTACT: Jay M. Green of Seitel, 203-629-1400/
 (SEI) CO: Seitel Inc. ST: Texas IN: OIL SU: ERN


SH -- NY045 -- 3450 07/27/92 11:03 EDT
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Date:Jul 27, 1992
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