-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 LRwd4Nf+zakHTym0u4aDY4Un1mcccF037Fqd0YXIOvw4T+j5lwmiDyuM1Wu7/Yow
 YzoX+Airh+D+TuLij4HPIw==

<SEC-DOCUMENT>0000932799-06-000053.txt : 20060302
<SEC-HEADER>0000932799-06-000053.hdr.sgml : 20060302
<ACCEPTANCE-DATETIME>20060302155552
ACCESSION NUMBER:		0000932799-06-000053
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20060228
FILED AS OF DATE:		20060302
DATE AS OF CHANGE:		20060302

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SEITEL INC
		CENTRAL INDEX KEY:			0000750813
		STANDARD INDUSTRIAL CLASSIFICATION:	OIL AND GAS FIELD EXPLORATION SERVICES [1382]
		IRS NUMBER:				760025431
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		10811 S. WESTVIEW CIRCLE
		STREET 2:		BUILDING C, SUITE 100
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77043
		BUSINESS PHONE:		7138818900

	MAIL ADDRESS:	
		STREET 1:		10811 S. WESTVIEW CIRCLE
		STREET 2:		BUILDING C, SUITE 100
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77043

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	SEISMIC ENTERPRISES INC
		DATE OF NAME CHANGE:	19870814

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			MELLON HBV ALTERNATIVE STRATEGIES LLC
		CENTRAL INDEX KEY:			0001218315
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-10165
		FILM NUMBER:		06659879

	BUSINESS ADDRESS:	
		STREET 1:		200 PARK AVE
		STREET 2:		STE 3300
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10166-3399
		BUSINESS PHONE:		2128083941

	MAIL ADDRESS:	
		STREET 1:		200 PARK AVE
		STREET 2:		STE 3300
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10166-3399
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>seitel4_ex.xml
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2006-02-28</periodOfReport>

    <notSubjectToSection16>1</notSubjectToSection16>

    <issuer>
        <issuerCik>0000750813</issuerCik>
        <issuerName>SEITEL INC</issuerName>
        <issuerTradingSymbol>SELA</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001218315</rptOwnerCik>
            <rptOwnerName>MELLON HBV ALTERNATIVE STRATEGIES LLC</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>200 PARK AVE</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>NEW YORK</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>10166-3399</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <transactionDate>
                <value>2006-02-28</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>J</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>21499983</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>2.75</value>
                    <footnoteId id="F1"/>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>0</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>See Footnotes</value>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Standby Warrants (Right to Purchase)</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <footnoteId id="F1"/>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2006-02-28</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>J</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>15037568</value>
                </transactionShares>
                <transactionPricePerShare>
                    <footnoteId id="F1"/>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <value>2004-08-12</value>
            </exerciseDate>
            <expirationDate>
                <value>2011-07-02</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>15037568</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>0</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                    <footnoteId id="F2"/>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>See Footnotes</value>
                    <footnoteId id="F2"/>
                </natureOfOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">Shares of Issuer's common stock and warrants were sold in a private transaction.</footnote>
        <footnote id="F2">The Reporting Person serves as investment advisor and agent for Mellon HBV Master Global Event Driven Fund LP, Mellon HBV
 Master Rediscovered Opportunities Fund LP, Axis RDO Ltd., Distressed Recovery Master Fund Ltd., Mellon HBV Master US Event
 Driven Funds LP and Lyxor/Mellon HBV Rediscovered Opportunity Fund Ltd.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ William Harley</signatureName>
        <signatureDate>2006-02-28</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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