

	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Eliminations			Consolidated Total
ASSETS
Cash and cash equivalents	$	—		$	40,986		$	1,833		$	—		$	42,819
Receivables
Trade, net	—			33,256			11,237			—			44,493
Notes and other, net	491			997			2,244			—			3,732
Due from Seitel Holdings, Inc.	—			872			—			—			872
Intercompany receivables (payables)	80,575			(55,308		)	(25,267		)	—			—
Investment in subsidiaries	300,506			427,509			1,481			(729,496		)	—
Net seismic data library	—			88,252			75,800			—			164,052
Net property and equipment	—			2,318			2,820			—			5,138
Prepaid expenses, deferred charges and other	2,966			5,367			877			—			9,210
Intangible assets, net	900			14,053			7,590			—			22,543
Goodwill	—			107,688			101,475			—			209,163
Deferred income taxes	—			56			—			—			56
TOTAL ASSETS	$	385,438		$	666,046		$	180,090		$	(729,496	)	$	502,078
LIABILITIES AND STOCKHOLDER’S EQUITY
Accounts payable and accrued liabilities	$	3,346		$	28,237		$	11,881		$	—		$	43,464
Income taxes payable	596			442			2,765			—			3,803
Senior Notes	275,000			—			—			—			275,000
Notes payable	46			—			—			—			46
Obligations under capital leases	—			89			3,121			—			3,210
Deferred revenue	—			37,449			5,643			—			43,092
Deferred income taxes	—			—			1,499			—			1,499
TOTAL LIABILITIES	278,988			66,217			24,909			—			370,114
STOCKHOLDER’S EQUITY
Common stock	—			—			—			—			—
Additional paid-in capital	398,530			—			—			—			398,530
Parent investment	—			764,752			156,917			(921,669		)	—
Retained deficit	(292,080		)	(164,923		)	(27,250		)	192,173			(292,080		)
Accumulated other comprehensive income	—			—			25,514			—			25,514
TOTAL STOCKHOLDER’S EQUITY	106,450			599,829			155,181			(729,496		)	131,964
TOTAL LIABILITIES AND STOCKHOLDER’S EQUITY	$	385,438		$	666,046		$	180,090		$	(729,496	)	$	502,078

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 Nine Months Ended September 30, 2012

(In thousands)



	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Eliminations			Consolidated Total
REVENUE	$	—		$	106,372		$	64,730		$	(971	)	$	170,131
EXPENSES:
Depreciation and amortization	—			64,927			41,997			—			106,924
Cost of sales	—			335			17			—			352
Selling, general and administrative	1,601			12,313			7,699			(971		)	20,642
	1,601			77,575			49,713			(971		)	127,918
INCOME (LOSS) FROM OPERATIONS	(1,601		)	28,797			15,017			—			42,213
Interest expense, net	(9,690		)	(10,995		)	(1,053		)	—			(21,738		)
Foreign currency exchange losses	—			(4		)	1,040			—			1,036
Gain on sale of marketable securities	—			230			—			—			230
Other income	20			690			—			—			710
Income (loss) before income taxes and equity in income of subsidiaries	(11,271		)	18,718			15,004			—			22,451
Provision for income taxes	—			1,420			3,926			—			5,346
Equity in income of subsidiaries	28,376			11,078			—			(39,454		)	—
NET INCOME	$	17,105		$	28,376		$	11,078		$	(39,454	)	$	17,105

CONSOLIDATING CONDENSED STATEMENT OF COMPREHENSIVE INCOME

For the Nine Months Ended September 30, 2012

(In thousands)



	Parent		Guarantor Subsidiaries			Non- Guarantor Subsidiaries		Consolidating Eliminations			Consolidated Total
Net income	$	17,105	$	28,376		$	11,078	$	(39,454	)	$	17,105
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	—		—			4,762		—			4,762
Comprehensive income	$	17,105	$	28,114		$	15,840	$	(39,454	)	$	21,605

CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS

For the Nine Months Ended September 30, 2011

(In thousands)



	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Eliminations			Consolidated Total
REVENUE	$	—		$	102,973		$	45,245		$	(969	)	$	147,249
EXPENSES:
Depreciation and amortization	—			64,744			34,968			—			99,712
Cost of sales	—			61			7			—			68
Selling, general and administrative	1,278			14,498			8,320			(969		)	23,127
	1,278			79,303			43,295			(969		)	122,907
INCOME (LOSS) FROM OPERATIONS	(1,278		)	23,670			1,950			—			24,342
Interest expense, net	(12,047		)	(14,972		)	(603		)	—			(27,622		)
Foreign currency exchange gains	—			4			(1,178		)	—			(1,174		)
Loss on early extinguishment of debt	(7,912		)	—			—			—			(7,912		)
Gain on sale of marketable securities	—			2,467			—			—			2,467
Other income	3			27			178			—			208
Income (loss) before income taxes and equity in income of subsidiaries	(21,234		)	11,196			347			—			(9,691		)
Provision (benefit) for income taxes	—			(251		)	186			—			(65		)
Equity in income of subsidiaries	11,608			161			—			(11,769		)	—
NET INCOME (LOSS)	$	(9,626	)	$	11,608		$	161		$	(11,769	)	$	(9,626	)

CONSOLIDATING CONDENSED STATEMENT OF COMPREHENSIVE INCOME (LOSS)

For the Nine Months Ended September 30, 2011

(In thousands)



	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Eliminations			Consolidated Total
Net income (loss)	$	(9,626	)	$	11,608		$	161		$	(11,769	)	$	(9,626	)
Unrealized loss on securities held as available for sale, net of tax:
Unrealized net holding loss arising during the period	—			(461		)	—			—			(461		)
Less: Reclassification adjustment for realized gains included in earnings	—			(2,467		)	—			—			(2,467		)
Foreign currency translation adjustments	—			(1		)	(6,068		)	—			(6,069		)
Comprehensive income (loss)	$	(9,626	)	$	8,679		$	(5,907	)	$	(11,769	)	$	(18,623	)

CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS

For the Nine Months Ended September 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	$	(26,451	)	$	88,015		$	57,238		$	—	$	118,802
Cash flows from investing activities:
Cash invested in seismic data	—			(75,100		)	(73,754		)	—		(148,854		)
Cash paid to acquire property, equipment and other	—			(1,194		)	(82		)	—		(1,276		)
Net proceeds from sale of marketable securities	—			230			—			—		230
Cash from sale of property, equipment and other	—			90			—			—		90
Advances to Seitel Holdings, Inc.	—			(11		)	—			—		(11		)
Net cash used in investing activities	—			(75,985		)	(73,836		)	—		(149,821		)
Cash flows from financing activities:
Principal payments on notes payable	(49		)	—			—			—		(49		)
Principal payments on capital lease obligations	—			(6		)	(144		)	—		(150		)
Intercompany transfers	26,500			(32,650		)	6,150			—		—
Net cash provided by (used in) financing activities	26,451			(32,656		)	6,006			—		(199		)
Effect of exchange rate changes	—			—			(857		)	—		(857		)
Net decrease in cash and cash equivalents	—			(20,626		)	(11,449		)	—		(32,075		)
Cash and cash equivalents at beginning of period	—			61,612			13,282			—		74,894
Cash and cash equivalents at end of period	$	—		$	40,986		$	1,833		$	—	$	42,819

CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS

For the Nine Months Ended September 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	$	(38,639	)	$	78,628		$	24,395		$	—	$	64,384
Cash flows from investing activities:
Cash invested in seismic data	—			(57,493		)	(45,219		)	—		(102,712		)
Cash paid to acquire property, equipment and other	—			(1,055		)	(166		)	—		(1,221		)
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.	—			(752		)	—			—		(752		)
Repayment from Seitel Holdings, Inc.	—			50			—			—		50
Net cash used in investing activities	—			(56,749		)	(45,384		)	—		(102,133		)
Cash flows from financing activities:
Principal payments on notes payable	(44		)	—			—			—		(44		)
Repayment of 9.75% Senior Notes	(131,094		)	—			—			—		(131,094		)
Repayment of 11.75% Senior Notes	(2,000		)	—			—			—		(2,000		)
Principal payments on capital lease obligations	—			—			(122		)	—		(122		)
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	(6,263		)	—			(70		)	—		(6,333		)
Intercompany transfers	53,040			(65,040		)	12,000			—		—
Net cash provided by (used in) financing activities	38,639			(65,040		)	11,808			—		(14,593		)
Effect of exchange rate changes	—			—			978			—		978
Net decrease in cash and cash equivalents	—			(43,161		)	(8,203		)	—		(51,364		)
Cash and cash equivalents at beginning of period	—			75,068			14,903			—		89,971
Cash and cash equivalents at end of period	$	—		$	31,907		$	6,700		$	—	$	38,607