

	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Eliminations			Consolidated Total
ASSETS
Cash and cash equivalents	$	—		$	57,964		$	1,611		$	—		$	59,575
Receivables
Trade, net	—			31,498			5,907			—			37,405
Notes and other, net	470			1,674			2,261			—			4,405
Due from Seitel Holdings, Inc.	—			870			—			—			870
Intercompany receivables (payables)	90,753			(66,819		)	(23,934		)	—			—
Investment in subsidiaries	294,654			426,208			1,438			(722,300		)	—
Net seismic data library	—			70,807			78,052			—			148,859
Net property and equipment	—			2,397			2,848			—			5,245
Prepaid expenses, deferred charges and other	3,516			10,070			783			—			14,369
Intangible assets, net	900			14,856			8,029			—			23,785
Goodwill	—			107,688			97,948			—			205,636
Deferred income taxes	—			56			—			—			56
TOTAL ASSETS	$	390,293		$	657,269		$	174,943		$	(722,300	)	$	500,205
LIABILITIES AND STOCKHOLDER’S EQUITY
Accounts payable and accrued liabilities	$	10,049		$	22,666		$	8,932		$	—		$	41,647
Income taxes payable	61			—			2,115			—			2,176
Senior Notes	275,000			—			—			—			275,000
Notes payable	63			—			—			—			63
Obligations under capital leases	—			94			3,066			—			3,160
Deferred revenue	—			40,533			10,072			—			50,605
Deferred income taxes	—			—			2,021			—			2,021
TOTAL LIABILITIES	285,173			63,293			26,206			—			374,672
STOCKHOLDER’S EQUITY
Common stock	—			—			—			—			—
Additional paid-in capital	398,329			—			—			—			398,329
Parent investment	—			764,752			156,917			(921,669		)	—
Retained deficit	(293,209		)	(170,776		)	(28,593		)	199,369			(293,209		)
Accumulated other comprehensive income	—			—			20,413			—			20,413
TOTAL STOCKHOLDER’S EQUITY	105,120			593,976			148,737			(722,300		)	125,533
TOTAL LIABILITIES AND STOCKHOLDER’S EQUITY	$	390,293		$	657,269		$	174,943		$	(722,300	)	$	500,205

CONSOLIDATING CONDENSED BALANCE SHEET

As of December 31, 2011

(In thousands)



	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Eliminations			Consolidated Total
ASSETS
Cash and cash equivalents	$	—		$	61,612		$	13,282		$	—		$	74,894
Receivables
Trade, net	—			32,129			19,177			—			51,306
Notes and other, net	520			1,606			2,196			—			4,322
Due from Seitel Holdings, Inc.	—			861			—			—			861
Intercompany receivables (payables)	95,955			(78,614		)	(17,341		)	—			—
Investment in subsidiaries	272,268			416,322			1,448			(690,038		)	—
Net seismic data library	—			63,259			57,435			—			120,694
Net property and equipment	—			1,897			3,142			—			5,039
Investment in marketable securities	—			262			—			—			262
Prepaid expenses, deferred charges and other	4,409			5,078			757			—			10,244
Intangible assets, net	900			16,462			9,452			—			26,814
Goodwill	—			107,688			98,150			—			205,838
Deferred income taxes	—			56			—			—			56
TOTAL ASSETS	$	374,052		$	628,618		$	187,698		$	(690,038	)	$	500,330
LIABILITIES AND STOCKHOLDER’S EQUITY
Accounts payable and accrued liabilities	$	10,050		$	23,563		$	26,937		$	—		$	60,550
Income taxes payable	81			—			1,383			—			1,464
Senior Notes	275,000			—			—			—			275,000
Notes payable	95			—			—			—			95
Obligations under capital leases	—			—			3,161			—			3,161
Deferred revenue	—			33,340			15,505			—			48,845
Deferred income taxes	—			—			1,375			—			1,375
TOTAL LIABILITIES	285,226			56,903			48,361			—			390,490
STOCKHOLDER’S EQUITY
Common stock	—			—			—			—			—
Additional paid-in capital	398,011			—			—			—			398,011
Parent investment	—			764,752			156,913			(921,665		)	—
Retained deficit	(309,185		)	(193,299		)	(38,328		)	231,627			(309,185		)
Accumulated other comprehensive income	—			262			20,752			—			21,014
TOTAL STOCKHOLDER’S EQUITY	88,826			571,715			139,337			(690,038		)	109,840
TOTAL LIABILITIES AND STOCKHOLDER’S EQUITY	$	374,052		$	628,618		$	187,698		$	(690,038	)	$	500,330

CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS

For the Six Months Ended June 30, 2012

(In thousands)



	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Eliminations			Consolidated Total
REVENUE	$	—		$	70,421		$	48,836		$	(682	)	$	118,575
EXPENSES:
Depreciation and amortization	—			40,248			28,973			—			69,221
Cost of sales	—			235			13			—			248
Selling, general and administrative	1,174			9,306			5,999			(682		)	15,797
	1,174			49,789			34,985			(682		)	85,266
INCOME (LOSS) FROM OPERATIONS	(1,174		)	20,632			13,851			—			33,309
Interest expense, net	(5,374		)	(8,464		)	(634		)	—			(14,472		)
Foreign currency exchange losses	—			(4		)	(11		)	—			(15		)
Gain on sale of marketable securities	—			230			—			—			230
Other income	1			482			—			—			483
Income (loss) before income taxes and equity in income of subsidiaries	(6,547		)	12,876			13,206			—			19,535
Provision for income taxes	—			88			3,471			—			3,559
Equity in income of subsidiaries	22,523			9,735			—			(32,258		)	—
NET INCOME	$	15,976		$	22,523		$	9,735		$	(32,258	)	$	15,976

CONSOLIDATING CONDENSED STATEMENT OF COMPREHENSIVE INCOME

For the Six Months Ended June 30, 2012

(In thousands)



	Parent		Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Eliminations			Consolidated Total
Net income	$	15,976	$	22,523		$	9,735		$	(32,258	)	$	15,976
Unrealized loss on securities held as available for sale, net of tax:
Unrealized net holding loss arising during the period	—		(32		)	—			—			(32		)
Less: Reclassification adjustment for realized gains included in earnings	—		(230		)	—			—			(230		)
Foreign currency translation adjustments	—		—			(339		)	—			(339		)
Comprehensive income	$	15,976	$	22,261		$	9,396		$	(32,258	)	$	15,375

CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS

For the Six Months Ended June 30, 2011

(In thousands)



	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Eliminations			Consolidated Total
REVENUE	$	—		$	66,412		$	29,264		$	(635	)	$	95,041
EXPENSES:
Depreciation and amortization	—			42,731			22,929			—			65,660
Cost of sales	—			51			4			—			55
Selling, general and administrative	1,042			9,437			5,646			(635		)	15,490
	1,042			52,219			28,579			(635		)	81,205
INCOME (LOSS) FROM OPERATIONS	(1,042		)	14,193			685			—			13,836
Interest expense, net	(10,146		)	(9,936		)	(342		)	—			(20,424		)
Foreign currency exchange gains	—			4			453			—			457
Gain on sale of marketable securities	—			2,467			—			—			2,467
Other income	2			27			135			—			164
Income (loss) before income taxes and equity in income of subsidiaries	(11,186		)	6,755			931			—			(3,500		)
Provision for income taxes	—			438			577			—			1,015
Equity in income of subsidiaries	6,671			354			—			(7,025		)	—
NET INCOME (LOSS)	$	(4,515	)	$	6,671		$	354		$	(7,025	)	$	(4,515	)

CONSOLIDATING CONDENSED STATEMENT OF COMPREHENSIVE INCOME (LOSS)

For the Six Months Ended June 30, 2011

(In thousands)



	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries		Consolidating Eliminations			Consolidated Total
Net income (loss)	$	(4,515	)	$	6,671		$	354	$	(7,025	)	$	(4,515	)
Unrealized loss on securities held as available for sale, net of tax:
Unrealized net holding loss arising during the period	—			(177		)	—		—			(177		)
Less: Reclassification adjustment for realized gains included in earnings	—			(2,467		)	—		—			(2,467		)
Foreign currency translation adjustments	—			(1		)	4,435		—			4,434
Comprehensive income (loss)	$	(4,515	)	$	4,026		$	4,789	$	(7,025	)	$	(2,725	)

CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS

For the Six Months Ended June 30, 2012

(In thousands)



	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Eliminations		Consolidated Total
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	(14,316	)	$	63,283		$	49,534		$	—	$	98,501
Cash flows from investing activities:
Cash invested in seismic data	—			(46,190		)	(66,946		)	—		(113,136		)
Cash paid to acquire property, equipment and other	—			(1,004		)	(70		)	—		(1,074		)
Net proceeds from sale of marketable securities	—			230			—			—		230
Cash from sale of property, equipment and other	—			90			—			—		90
Advances to Seitel Holdings, Inc.	—			(9		)	—			—		(9		)
Net cash used in investing activities	—			(46,883		)	(67,016		)	—		(113,899		)
Cash flows from financing activities:
Principal payments on notes payable	(32		)	—			—			—		(32		)
Principal payments on capital lease obligations	—			—			(91		)	—		(91		)
Intercompany transfers	14,348			(20,048		)	5,700			—		—
Net cash provided by (used in) financing activities	14,316			(20,048		)	5,609			—		(123		)
Effect of exchange rate changes	—			—			202			—		202
Net decrease in cash and cash equivalents	—			(3,648		)	(11,671		)	—		(15,319		)
Cash and cash equivalents at beginning of period	—			61,612			13,282			—		74,894
Cash and cash equivalents at end of period	$	—		$	57,964		$	1,611		$	—	$	59,575

CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS

For the Six Months Ended June 30, 2011

(In thousands)



	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Eliminations		Consolidated Total
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	(20,460	)	$	48,854		$	15,692		$	—	$	44,086
Cash flows from investing activities:
Cash invested in seismic data	—			(38,006		)	(41,073		)	—		(79,079		)
Cash paid to acquire property, equipment and other	—			(621		)	(118		)	—		(739		)
Net proceeds from sale of marketable securities	—			2,467			—			—		2,467
Cash from sale of property, equipment and other	—			34			1			—		35
Advances to Seitel Holdings, Inc.	—			(6		)	—			—		(6		)
Net cash used in investing activities	—			(36,132		)	(41,190		)	—		(77,322		)
Cash flows from financing activities:
Principal payments on notes payable	(29		)	—			—			—		(29		)
Repayment of 11.75% Senior Notes	(2,000		)	—			—			—		(2,000		)
Principal payments on capital lease obligations	—			—			(81		)	—		(81		)
Borrowings on line of credit	—			—			737			—		737
Payments on line of credit	—			—			(737		)	—		(737		)
Contributed capital	125,000			—			—			—		125,000
Costs of debt and equity transactions	(6,020		)	—			(47		)	—		(6,067		)
Intercompany transfers	(96,491		)	84,491			12,000			—		—
Net cash provided by financing activities	20,460			84,491			11,872			—		116,823
Effect of exchange rate changes	—			—			(188		)	—		(188		)
Net increase (decrease) in cash and cash equivalents	—			97,213			(13,814		)	—		83,399
Cash and cash equivalents at beginning of period	—			75,068			14,903			—		89,971
Cash and cash equivalents at end of period	$	—		$	172,281		$	1,089		$	—	$	173,370