PROSPECTUS SUPPLEMENT
(To Prospectus Dated September 17, 1990)


                                  SEITEL, INC.

                                  15,317 Shares

                                  Common Stock
                           ($.01 par value per share)
                            ------------------------

                           Incentive Stock Option Plan

                         Non-Qualified Stock Option Plan

                     Employee Common Stock Purchase Warrants

                            -------------------------

     The  Prospectus  dated  September 17, 1990, as  supplemented  by Prospectus
Supplement  dated March 28, 1994,  provided for certain  stockholders of Seitel,
Inc. to resell  shares of Common Stock  acquired  upon exercise of stock options
issued under the Incentive Stock Option Plan and the Non-Qualified  Stock Option
Plan,  and upon  conversion  of Employee  Common Stock  Purchase  Warrants.  The
following  Selling  Stockholder  may  resell  shares  of Common  Stock  acquired
pursuant to the  Non-Qualified  Stock  Option  Plan and  Employee  Common  Stock
Purchase  Warrants  pursuant to this Prospectus.  The following table sets forth
the name and relationship to the Company of this Selling Stockholder, the number
of shares of Common Stock owned by such Selling  Stockholder prior to such sale,
the amount to be offered for such Selling Stockholder's account pursuant hereto,
and the  amount  and  percentage  of  Common  Stock to be owned by such  Selling
Stockholder after the sale of such shares pursuant hereto.



                                                                                  Amount of
                                                               Amount of         Common Stock      Percentage of
                                            Owned as of      Common Stock        to be Owned        Common Stock
                                            11/25/96(1)     Offered           after this        Owned after
         Name and Relationship                              Pursuant hereto      Offering(1)       Sales
- ----------------------------------------    ------------    ----------------    ---------------    ---------------

                                                                                             
Debra D. Valice,                              150,173           15,317             134,856              1.3%
Senior Vice President - Finance,
Chief Financial Officer(2)


(1)   Includes  shares that may be acquired within 60 days upon the exercise
          of any right.

(2)   Includes  10,471  and  83,512  shares  that may be  acquired  from the
          Company  within 60 days upon  exercise  of options  and  common  stock
          purchase warrants, respectively.




     This Prospectus Supplement is dated November 25, 1996.