Exhibit 99.1

FOR IMMEDIATE RELEASE

Contact:  Robert Monson, CFO

               713-881-2816

SEITEL ANNOUNCES THIRD QUARTER RESULTS
 

HOUSTON, November 22, 2004 - Seitel, Inc. (OTC Bulletin Board: SELA), a leading provider of seismic data to the oil and gas industry, today reported its results for the third quarter and nine months ended September 30, 2004. Revenue for the quarter was $27.4 million compared to $39.2 million for the third quarter of 2003. Revenue for the nine months was $103.8 million compared to $101.3 million for the nine-month period last year.

"While we are surprised that the higher commodity prices have not yet stimulated more shelf data sales, we are confident that exploration spending will increase in the near term," stated Rob Monson, chief financial officer of Seitel. "We are beginning to see signs of this through stronger demand for new surveys which have a longer planning cycle, and we have experienced a stronger than normal demand for shelf data early in the fourth quarter. We received a US tax refund of $11.3 million in October, resulting in a cash balance of $33.9 million as of November 18^th."

"We are very pleased with the progress that has been made over the past several quarters and we are seeing steady progress towards accomplishing our business goals," commented Fred Zeidman, chairman of Seitel. "We completed our first quarter out of the bankruptcy process, having paid all of our allowed pre-petition claims on August 13^th."

For the third quarter, the company reported a net loss of $80.6 million, or $0.76 per share, compared with a net loss of $10.9 million, or $0.43 per share for the third quarter of 2003. Results for both periods include a number of special items that are not necessarily indicative of the company's core operations or future prospects, and impact the comparability between years. The loss for the third quarter of 2004 includes a $59.1 million non-cash amortization charge related to the company's decision to revise its estimate of the accounting data life from seven to four years.

"This decision to revise the accounting estimate of useful life of our data library was based on our commitment to conservatism and to better align us with the industry," continued Zeidman. "We believe we have one of the most extensive high quality seismic data libraries, and, with over 1,000 clients, we're very well regarded in our ability to both design and manage data surveys and provide the seismic data clients need. The Seitel 3D data library is already one of the largest, and we continue to grow the library through high quality additions."

During the quarter, the company incurred the following non-recurring charges: the $59.1 million amortization charge described above; $6.4 million in reorganization charges, which included costs related to restructuring efforts and bankruptcy proceedings; and $2.3 million in additional interest expense due to the overlapping of newly issued and retiring senior notes. Included in the net loss for the third quarter of 2003 were a $13.4 million impairment charge and $1.7 million in reorganization charges and various litigation costs.

For the nine months ended September 30, 2004, the company reported a net loss of $86.4 million, or $1.65 per share, compared with a net loss of $12.2 million, or $0.48 per share for the same period of the prior year. Results for both periods include a number of special items that are not necessarily indicative of the company's core operations or future prospects, and impact comparability between years. The 2004 period includes the $59.1 amortization charge, $12.4 million in reorganization charges, $2.3 million in overlapping interest expense and $0.8 million of severance costs for former executives. The 2003 period includes the $13.4 million impairment charge and $5.1 million in reorganization costs and various litigation costs, partially offset by $3.4 million of foreign currency re-measurement gains related to the strengthening of the Canadian dollar.

CONFERENCE CALL

Seitel will hold its quarterly conference call to discuss third quarter results today at 10:00 am Central Time (11:00 am Eastern Time). The dial-in number for the call is 800-901-5259, passcode Seitel. A live Webcast of the call can be accessed on the investor relations page of Seitel's Website at http://www.seitel-inc.com/investorrelations.asp. The call will also be available for replay for 30 days by dialing 888-286-8010, passcode 31281592, or by going to http://www.seitel-inc.com/investorrelations.asp.

ABOUT SEITEL

Seitel is a leading provider of seismic data and related geophysical services to the oil and gas industry in North America. Seitel's products and services are used by oil and gas companies to assist in the exploration for and development and management of oil and gas reserves. Seitel has ownership in an extensive library of proprietary onshore and offshore seismic data that it has accumulated since 1982 and that it offers for license to a wide range of oil and gas companies. Seitel believes that its library of onshore seismic data is one of the largest available for licensing in the United States and Canada. Seitel's seismic data library includes both onshore and offshore three- dimensional (3D) and two-dimensional (2D) data and offshore multi-component data. Seitel has ownership in over 32,000 square miles of 3D and approximately 1.1 million linear miles of 2D seismic data concentrated primarily in the major North American oil and gas producing regions. Seitel markets its seismic data to over 1,300 customers in the oil and gas industry, and it has license arrangements with more than 1,000 customers.

Statements in this release about the future outlook related to Seitel involve known and unknown risks and uncertainties, which may cause Seitel's actual results to differ materially from expected results. While Seitel believes its forecasting assumptions are reasonable, there are factors that are hard to predict and influenced by economic and other conditions that are beyond Seitel's control. Other important factors which could cause actual results to differ materially from those in the forward-looking statements are detailed in Seitel's filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K, a copy of which may be obtained from Seitel without charge.

(Tables to follow)

The following table summarizes the components of our revenue for the three and nine months ended September 30, 2004 and 2003 (in thousands):

				Three months ended						Nine months ended
				September 30,						September 30,
				2004			2003			2004			2003
Acquisition revenue:
	Cash underwriting		$	5,184		$	7,747		$	29,195		$	24,428
	Underwriting from non-monetary exchanges			32			-			1,870			-
Licensing revenue:
		New resales for cash		14,946			19,246			52,271			57,560
		Non-monetary exchanges		1,532			3,261			10,470			9,218
		Deferral of revenue		(7,648	)		(9,805	)		(31,639	)		(35,685	)
		Selections of data		12,211			17,403			37,990			42,433
Solutions and other				1,147			1,347			3,607			3,342
Total revenue			$	27,404		$	39,199		$	103,764		$	101,296

SEITEL, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share amounts)

						(Unaudited)
						September 30,			December 31,
						2004			2003
ASSETS
	Cash and equivalents				$	17,924		$	44,362
	Restricted cash					161			202
	Receivables
			Trade, net			37,256			37,461
			Notes and other, net			11,709			12,047
	Net seismic data library					165,393			247,541
	Net other property and equipment					12,095			15,431
	Oil and gas operations held for sale					230			1,552
	Investment in marketable securities					23			99
	Prepaid expenses, deferred charges and other assets					14,269			8,394
	TOTAL ASSETS				$	259,060		$	367,089
LIABILITIES AND STOCKHOLDERS' EQUITY
	Liabilities not subject to compromise:
				Accounts payable and accrued liabilities	$	22,939		$	17,414
				Income taxes payable		134			-
				Oil and gas operations held for sale		15			17
				Senior Notes		188,618			-
				Term loans		424			5,417
				Obligations under capital leases		5,570			6,571
				Deferred income taxes		798			1,953
				Deferred revenue		51,780			58,876
		Liabilities subject to compromise				-			273,119
TOTAL LIABILITIES						270,278			363,367
CONTINGENCIES AND COMMITMENTS
STOCKHOLDERS' EQUITY
	Preferred stock, par value $.01 per share; authorized
			5,000,000 shares; none issued			-			-
	Common stock, par value $.01 per share; authorized
			400,000,000 and 50,000,000 shares at September 30,
			2004 and December 31, 2003, respectively; issued and
			outstanding 150,414,143 at September 30, 2004 and			1,504			258
			25,811,601 at December 31, 2003
	Additional paid-in capital					233,991			166,630
	Retained deficit					(248,735	)		(159,731	)
	Treasury stock 435,918 shares at cost at
			December 31, 2003			-			(5,373	)
	Deferred compensation - restricted stock					(45	)		-
	Notes receivable from officers and employees					(30	)		(124	)
	Accumulated other comprehensive income					2,097			2,062
TOTAL STOCKHOLDERS' EQUITY (DEFICIT)						(11,218	)		3,722
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY					$	259,060		$	367,089

(more)

SEITEL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF LOSS (Unaudited)

(In thousands, except per share amounts)

				Three Months Ended September 30,
				2004			2003
REVENUE			$	27,404		$	39,199
EXPENSES:
	Depreciation and amortization			90,771			23,399
	Cost of sales			52			180
	Selling, general and administrative expenses			7,073			7,023
	Impairment of seismic data library			-			13,354
				97,896			43,956
LOSS FROM OPERATIONS				(70,492	)		(4,757	)
Interest expense, net				(8,147	)		(5,016	)
Foreign currency exchange gains				1,761			329
Reorganization items				(6,383	)		(1,675	)
Loss from continuing operations before income taxes				(83,261	)		(11,119	)
Benefit for income taxes				(2,583	)		(192	)
Loss from continuing operations				(80,678	)		(10,927	)
Income from discontinued operations				89			19
NET LOSS			$	(80,589	)	$	(10,908	)
Basic and diluted loss per share:
		Loss from continuing operations	$	(.76	)	$	(.43	)
		Income from discontinued operations		-			-
		Net loss	$	(.76	)	$	(.43	)
Weighted average number of common and common
	equivalent shares - basic and diluted			106,289			25,376

(more)
 
 
SEITEL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF LOSS (Unaudited)
(In thousands, except per share amounts)



 

  


   
  


   
  

  
Nine Months Ended September 30,
  


   
 
 

  


  
  


  
  

  

  2004
  
  


  
  


  
  

  

  2003
  
  


  
 
 
 
 

  

  
REVENUE
  
  

  

  $
  
  

  

  103,764
  
  


  
  

  

  $
  
  

  

  101,296
  
  


  
 
 
 
 

  

  
EXPENSES:
  
  


  
  


  
  


  
  


  
  


  
  


  
 
 

  


  
  

  
Depreciation and
  amortization
  
  


  
  

  

  139,193
  
  


  
  


  
  

  

  61,506
  
  


  
 
 

  


  
  

  
Cost of sales
  
  


  
  

  

  261
  
  


  
  


  
  

  

  510
  
  


  
 
 

  


  
  

  
Selling, general and
  administrative expenses
  
  


  
  

  

  23,287
  
  


  
  


  
  

  

  24,571
  
  


  
 
 

  


  
  

  
Impairment of seismic
  data library
  
  


  
  

  

  -
  
  


  
  


  
  

  

  13,354
  
  


  
 
 

  


  
  


  
  

  

  162,741
  
  


  
  


  
  

  

  99,941
  
  


  
 
 
 
 

  

  
INCOME (LOSS) FROM
  OPERATIONS
  
  


  
  

  

  (58,977
  
  

  
)
  
  


  
  

  

  1,355
  
  


  
 
 
 
 

  

  
Interest expense, net
  
  


  
  

  

  (18,415
  
  

  
)
  
  


  
  

  

  (15,072
  
  

  
)
  
 
 

  

  
Foreign currency
  exchange gains
  
  


  
  

  

  953
  
  


  
  


  
  

  

  3,358
  
  


  
 
 

  

  
Gain on extinguishment
  of liabilities
  
  


  
  

  

  -
  
  


  
  


  
  

  

  681
  
  


  
 
 

  

  
Reorganization items
  
  


  
  

  

  (12,415
  
  

  
)
  
  


  
  

  

  (1,675
  
  

  
)
  
 
 
 
 

  

  
Loss from continuing
  operations before income taxes  
  
  


  
  

  

  (88,854
  
  

  
)
  
  


  
  

  

  (11,353
  
  

  
)
  
 
 

  

  
Provision (benefit) for
  income taxes
  
  


  
  

  

  (2,272
  
  

  
)
  
  


  
  

  

  621
  
  


  
 
 
 
 

  

  
Loss from continuing
  operations  
  
  


  
  

  

  (86,582
  
  

  
)
  
  


  
  

  

  (11,974
  
  

  
)
  
 
 
 
 

  

  
 Income (loss) from discontinued operations
  
  


  
  

  

  133
  
  


  
  


  
  

  

  (179
  
  

  
)
  
 
 
 
 

  

  
NET LOSS
  
  

  

  $
  
  

  

  (86,449
  
  

  
)
  
  

  

  $
  
  

  

  (12,153
  
  

  
)
  
 
 
 
 

  

  
Basic and diluted loss
  per share:
  
  


  
  


  
  


  
  


  
  


  
  


  
 
 

  


  
  

  
Loss from continuing
  operations
  
  

  

  $
  
  

  

  (1.65
  
  

  
)
  
  

  

  $
  
  

  

  (.47
  
  

  
)
  
 
 

  


  
  

  
Income (loss) from
  discontinued operations
  
  


  
  

  

  -
  
  


  
  


  
  

  

  (.01
  
  

  
)
  
 
 

  


  
  

  
Net loss
  
  

  

  $
  
  

  

  (1.65
  
  

  
)
  
  

  

  $
  
  

  

  (.48
  
  

  
)
  
 
 
 
 

  

  
Weighted average number
  of common and
  
  


  
  


  
  


  
  


  
  


  
  


  
 
 

  


  
  

  
common equivalent
  shares - basic and diluted
  
  


  
  

  

  52,544
  
  


  
  


  
  

  

  25,376
  
  


  
 
 



 
 
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