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SEITEL ACQUIRES LARGE SEISMIC DATA BASE IN CANADA -- ITS FIRST ENTRY NORTH OF THE BORDER

 SEITEL ACQUIRES LARGE SEISMIC DATA BASE IN CANADA --
 ITS FIRST ENTRY NORTH OF THE BORDER
 HOUSTON, July 1 /PRNewswire/ -- Seitel, Inc. (NYSE: SEI and SEI.F), a leading provider of seismic data to the petroleum industry, announced today that it has acquired from Canadian Hunter, Inc., a division of Noranda, Inc., in excess of 13,000 miles of seismic surveys of Canada. The purchase price was not disclosed.
 The acquisition marks Seitel's entry into Canada and its active petroleum-exploration market. It also more than doubles the size of the company's own seismic library, which totaled about 7,700 miles at 1991 year end. Combined with its joint-venture library with Digicon Geophysical Corp., the total amount of seismic data marketed by Seitel now exceeds 185,000 miles. Seismic data is geoscientific information fundamental to the exploration and development of crude oil and natural gas.
 The Canadian data acquired cover about 7,440 miles onshore in the Alberta province of western Canada, and about 5,580 miles offshore the Nova Scotia eastern coast, which represents the first marine seismic data that Seitel owns exclusively. These seismic surveys were created during the past 13 years by Western Geophysical Corp., a company jointly owned by Dresser Industries and Litton Industries.
 "We believe we have acquired a substantial amount of data at a very attractive price, which should be a profitable addition to Seitel's seismic library. And, as is our company's approach, we intend to market this Canadian library aggressively," said Paul A. Frame, president of Seitel.
 1992 Operating Outlook
 Frame also reported that Seitel currently is focusing the majority of both its marketing and technical resources on several major areas of expansion -- including a recent move overseas and its forthcoming entry into three-dimensional (3D) seismic surveys. "Our initial expansion efforts should start to contribute to earnings and revenues in the second half, which should be stronger than the first half," he said.
 "Our company's second quarter (ended yesterday, June 30) was below last year's comparable period and this year's first quarter, because of a strategic decision to limit our investment in new domestic 2D data creation and to concentrate primarily on the expansions at present, given the fact that the domestic petroleum market is very sluggish today and international markets are much more active," explained Frame.
 In the 1991 second quarter, Seitel had record revenues for that period of $7.8 million and record net income of $1.6 million, or $.31 per share. Last year's quarter was unusually strong because the company had data-creation activity delayed from the first into the second quarter of 1991. Seitel both creates proprietary seismic surveys and markets data from its library.
 For the first quarter of 1992, Seitel reported record opening-period revenues of $5.9 million, up 4 percent from $5.7 million in the year- earlier quarter, and its second highest earnings for an initial quarter of $1.0 million, or $.18 per share (based on 4 percent more shares outstanding this year), compared to $1.2 million, or $.24 a share, in the 1991 period.
 Seitel will report 1992 second-quarter results later this month.
 "This year, particularly the first half, is a transition period. However, we look for new growth from our evolving 3D and international expansions, which should start to pay off in the coming months and accelerate next year," said Frame.
 In April, in a joint venture with British-based Spectrum Energy & Information Technology, Ltd., Seitel launched both its first overseas and first offshore seismic creation program in the U.K. Irish Sea. License-sales from the Irish Sea are expected to add to Seitel's second- half earnings and revenues.
 Seitel also plans to commence in the second half its first 3D seismic creation program.
 Three-dimensional seismic data provide a more detailed depiction of the Earth's subsurface than two-dimensional (2D) data, which Seitel has specialized on until now in the Texas-Louisiana Gulf Coast.
 The worldwide seismic market, which totaled an estimated $2.6 billion in 1991, is projected to more than double by the end of 1995 to over $6 billion, according to industry analysts. This growth is expected to be spurred largely by 3D and sophisticated computer interpretation of both 2D and 3D data.
 "We expect that our company's participation in 3D seismic and related technology, along with our international expansions, should add material new growth for Seitel over the next several years," Frame stated.
 -0- 7/1/92
 /CONTACT: Jay M. Green, director of investor relations of Seitel, 203-629-1400/
 (SEI) CO: Seitel, Inc.; Noranda, Inc. ST: Texas IN: SU: TNM


PS -- NY077 -- 5722 07/01/92 12:51 EDT
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Date:Jul 1, 1992
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