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<p class=CenterBoldCoverPage style='margin-top:0; margin-bottom:0'>&nbsp;</p>
<p class=CenterBoldCoverPage style='margin-top:0; margin-bottom:0' align="center">
<b>As filed with the
Securities and Exchange Commission on February 14, 2005</b></p>

<p class=RightAlign style='margin-bottom:0; margin-top:0' align="right"><b>Registration No. 333-_____</b></p>

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<p class=CenterCapsNoBoldFont12 style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
<p class=CenterCapsNoBoldFont12 style="margin-top: 0; margin-bottom: 0" align="center">UNITED STATES</p>

<p class=CenterCapsNoBoldFont12 style="margin-top: 0; margin-bottom: 0" align="center">SECURITIES AND EXCHANGE COMMISSION</p>

<p class=CenterInitialCapsNoBold style="margin-top: 0; margin-bottom: 0" align="center">Washington, D.C. 20549</p>

<p class=CenterLine style='margin-bottom:0; margin-top:0' align="center"><u>_______________</u></p>

<p class=CenterBoldFont18 style='margin-top:0;line-height:92%; margin-bottom:0' align="center">&nbsp;</p>
<p class=CenterBoldFont18 style='margin-top:0;margin-bottom:0' align="center">
<b><font size="5">Form S-8</font></b></p>

<p class=CenterCapsNoBoldFont12 style="margin-top: 0; margin-bottom: 0" align="center">REGISTRATION STATEMENT</p>

<p class=CenterCapsNoBoldFont12 style="margin-top: 0; margin-bottom: 0" align="center">UNDER</p>

<p class=CenterCapsNoBoldFont12 style="margin-top: 0; margin-bottom: 0" align="center">THE SECURITIES ACT OF 1933</p>

<p class=CenterLine style='margin-bottom:0; margin-top:0' align="center"><u>_______________</u></p>

<p class=CenterBoldFont18 style='margin-top:0;line-height:normal; margin-bottom:0' align="center">&nbsp;</p>
<p class=CenterBoldFont18 style='margin-top:0;line-height:normal; margin-bottom:0' align="center">
<b><font size="5">Seitel,
Inc.</font></b></p>

<p class=CenterFont8 style='margin-bottom:0; margin-top:0' align="center">(Exact name of registrant as
specified in its charter)</p>
<p class=CenterFont8 style='margin-bottom:0; margin-top:0'>&nbsp;</p>

<div align=center>

<table class=MsoNormalTable border=0 cellspacing=1 cellpadding=0>
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  <td width=245 valign=top style='width:2.55in;padding:0in 5.75pt 0in 5.75pt' align="center">
  <p class=TableHeadings style="margin-top: 0; margin-bottom: 0"><b>Delaware</b></p>
  </td>
  <td width=245 valign=top style='width:2.55in;padding:0in 5.75pt 0in 5.75pt' align="center">
  <p class=TableHeadings style="margin-top: 0; margin-bottom: 0"><b>1382</b></p>
  </td>
  <td width=245 valign=top style='width:2.55in;padding:0in 5.75pt 0in 5.75pt' align="center">
  <p class=TableHeadings style="margin-top: 0; margin-bottom: 0"><b>76-0025431</b></p>
  </td>
 </tr>
 <tr>
  <td width=245 valign=top style='width:2.55in;padding:0in 5.75pt 0in 5.75pt' align="center">
  <p class=TableText align=center style='text-align:center; margin-top:0; margin-bottom:0'>(State or other jurisdiction</p>
  </td>
  <td width=245 valign=top style='width:2.55in;padding:0in 5.75pt 0in 5.75pt' align="center">
  <p class=TableText align=center style='text-align:center; margin-top:0; margin-bottom:0'>(Primary Standard Industrial</p>
  </td>
  <td width=245 valign=top style='width:2.55in;padding:0in 5.75pt 0in 5.75pt' align="center">
  <p class=TableText align=center style='text-align:center; margin-top:0; margin-bottom:0'>(I.R.S. Employer</p>
  </td>
 </tr>
 <tr>
  <td width=245 valign=top style='width:2.55in;padding:0in 5.75pt 0in 5.75pt' align="center">
  <p class=TableText align=center style='text-align:center; margin-top:0; margin-bottom:0'>of incorporation or
  organization)</p>
  </td>
  <td width=245 valign=top style='width:2.55in;padding:0in 5.75pt 0in 5.75pt' align="center">
  <p class=TableText align=center style='text-align:center; margin-top:0; margin-bottom:0'>Classification Code Number)</p>
  </td>
  <td width=245 valign=top style='width:2.55in;padding:0in 5.75pt 0in 5.75pt' align="center">
  <p class=TableText align=center style='text-align:center; margin-top:0; margin-bottom:0'>Identification No.)</p>
  </td>
 </tr>
</table>

</div>

<p class=CenterBoldCoverPage style='margin-top:0; margin-bottom:0'>&nbsp;</p>
<p class=CenterBoldCoverPage style='margin-top:0; margin-bottom:0' align="center">
<b>10811 S. Westview Circle&nbsp; Building C, Suite 100<br>
Houston, Texas 77043<br>
(713) 881-8900<br>
</b>(Address, including zip
code, and telephone number, including area code, of registrant's principal
executive offices)</p>



<p class=CenterBoldCoverPage style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
<p class=CenterBoldCoverPage style="margin-top: 0; margin-bottom: 0" align="center">
<b>Seitel, Inc. 2004
Stock Option Plan<br>
Non-Employee Director Non-Plan Restricted Stock Award Agreements<br>
Non-Qualified Stock Option Agreement for Fred Zeidman</b><br>
(Full title of the
plans)</p>



<p class=CenterBoldCoverPage style="margin-top: 0; margin-bottom: 0" align="center">&nbsp;</p>
<p class=CenterBoldCoverPage style="margin-top: 0; margin-bottom: 0" align="center">
<b>Robert D. Monson<br>
President and Chief Executive Officer<br>
Seitel, Inc.<br>
10811 S. Westview Circle<br>
Building C, Suite 100<br>
Houston, Texas 77043<br>
(713) 881-8900</b><br>
(Name, address,
including zip code, and telephone number, including area code, of agent for
service)</p>

<p class=CenterLine style='margin-bottom:0; margin-top:0' align="center"><u>_______________</u></p>

<p class=CenterBoldCoverPage style="margin-top: 0; margin-bottom: 0" align="center">&nbsp;</p>
<p class=CenterBoldCoverPage style="margin-top: 0; margin-bottom: 0" align="center">
<b>Copies to:</b></p>

<p class=CenterBoldCoverPage style="margin-top: 0; margin-bottom: 0" align="center">
<b>Kathy L. Tedore<br>
Porter &amp; Hedges, L.L.P.<br>
700 Louisiana, 35th Floor<br>
  Houston, Texas 77002<br>
Telephone: (713) 226-0659<br>
Telecopy: (713) 226-0259</b></p>

<p class=CenterLine style='margin-bottom:0; margin-top:0' align="center"><u>_______________</u></p>

<p class=CenterCapsBold style='margin-bottom:0in;margin-bottom:0; margin-top:0' align="center">&nbsp;</p>
<p class=CenterCapsBold style='margin-bottom:0in;margin-bottom:0; margin-top:0' align="center">
<b>CALCULATION OF REGISTRATION FEE</b></p>
<p class=CenterCapsBold style='margin-bottom:0in;margin-bottom:0; margin-top:0' align="center">&nbsp;</p>

<div align="center">

<table class=MsoNormalTable border=1 cellspacing=0 cellpadding=0 width="97%"
 style='width:750px;margin-left:6.95pt;border:1.0pt solid windowtext; '>
 <tr>
  <td valign=bottom style='width:29%;border:1.0pt solid windowtext;
  padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
  <p class=TableText0 align=center style='margin:0 0in; text-align:center'><b>Title of Each Class of Securities to Be Registered</b></p>
  </td>
  <td valign=bottom style='width:12%;border:1.0pt solid windowtext;
  padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
  <p class=TableText0 align=center style='margin:0 0in; text-align:center'><b>Amount To Be Registered (1)</b></p>
  </td>
  <td valign=bottom style='width:16%;border:1.0pt solid windowtext;
  padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
  <p class=TableText0 align=center style='margin:0 0in; text-align:center'><b>Proposed Maximum Offering Price Per Share (2)</b></p>
  </td>
  <td valign=bottom style='width:15%;border:1.0pt solid windowtext;
  padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
  <p class=TableText0 align=center style='margin:0 0in; text-align:center'><b>Proposed Maximum Aggregate
  Offering Price (2)</b></p>
  </td>
  <td width="15%" valign=bottom style='width:15.92%;border:solid windowtext 1.0pt;
  padding:0in 5.75pt 0in 5.75pt'>
  <p class=TableText0 align=center style='margin:0 0in; text-align:center'><b>Amount of Registration Fee</b></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom style='width:29%;border:1.0pt solid windowtext;
  padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
  <p class=TableText0 style='margin:0 0in; '>Common Stock, par value
  $0.01</p>
  </td>
  <td valign=bottom style='width:12%;border:1.0pt solid windowtext;
  padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=TableFigures style='margin-top:0;margin-right:.1in;margin-bottom:
  0;margin-left:0in'>8,667,492</p>
  </td>
  <td valign=bottom style='width:16%;border:1.0pt solid windowtext;
  padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=TableFigures style='margin-top:0;margin-right:0.5in;margin-bottom:
  0;margin-left:0in'>$1.26</p>
  </td>
  <td valign=bottom style='width:15%;border:1.0pt solid windowtext;
  padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=TableFigures style='margin-top:0;margin-right:0.2in;margin-bottom:
  0;margin-left:0in'>$10,921,039</p>
  </td>
  <td width="15%" valign=bottom style='width:15.92%;border:solid windowtext 1.0pt;
  padding:0in 5.75pt 0in 5.75pt' align="right">
  <p class=TableFigures style='margin-top:0;margin-right:.3in;margin-bottom:
  0;margin-left:0in'>$1,285.41</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom style='width:29%;border:1.0pt solid windowtext;
  padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
  <p class=TableText0 style='margin:0 0in; '>Common Stock, par value
  $0.01</p>
  </td>
  <td valign=bottom style='width:12%;border:1.0pt solid windowtext;
  padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=TableFigures style='margin-top:0;margin-right:.1in;margin-bottom:
  0;margin-left:0in'>100,000 (3)</p>
  </td>
  <td valign=bottom style='width:16%;border:1.0pt solid windowtext;
  padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=TableFigures style='margin-top:0;margin-right:0.5in;margin-bottom:
  0;margin-left:0in'>$1.30</p>
  </td>
  <td valign=bottom style='width:15%;border:1.0pt solid windowtext;
  padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=TableFigures style='margin-top:0;margin-right:0.2in;margin-bottom:
  0;margin-left:0in'>$130,000</p>
  </td>
  <td width="15%" valign=bottom style='width:15.92%;border:solid windowtext 1.0pt;
  padding:0in 5.75pt 0in 5.75pt' align="right">
  <p class=TableFigures style='margin-top:0;margin-right:.3in;margin-bottom:
  0;margin-left:0in'>$15.30</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom style='width:29%;border:1.0pt solid windowtext;
  padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in'>
  <p class=TableText0 align=center style='margin:0 0in; text-align:center'><b>Total</b></p>
  </td>
  <td valign=bottom style='width:12%;border:1.0pt solid windowtext;
  padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=TableFigures style='margin-top:0;margin-right:.1in;margin-bottom:
  0;margin-left:0in'>8,767,492</p>
  </td>
  <td valign=bottom style='width:16%;border:1.0pt solid windowtext;
  padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=TableFigures style='margin-top:0;margin-right:0.5in;margin-bottom:
  0;margin-left:0in'>N/A</p>
  </td>
  <td valign=bottom style='width:15%;border:1.0pt solid windowtext;
  padding-left:5.75pt; padding-right:5.75pt; padding-top:0in; padding-bottom:0in' align="right">
  <p class=TableFigures style='margin-top:0;margin-right:0.2in;margin-bottom:
  0;margin-left:0in'>$11,051,039</p>
  </td>
  <td width="15%" valign=bottom style='width:15.92%;border:solid windowtext 1.0pt;
  padding:0in 5.75pt 0in 5.75pt' align="right">
  <p class=TableFigures style='margin-top:0;margin-right:.3in;margin-bottom:
  0;margin-left:0in'>$1,300.71</p>
  </td>
 </tr>
</table>

</div>

<p class=MsoList2 style='text-indent:50px; margin-top:0; margin-bottom:0'>&nbsp;</p>
<p class=MsoList2 style='text-indent:50px; margin-top:0; margin-bottom:0' align="justify">(1) Pursuant to Rule 416 of the
Securities Act of 1933, as amended, the number of shares registered hereby
shall also be deemed to include such indeterminate number of additional shares
of common stock that may be issued or have been issued upon exercise of options
solely as a result of provisions to prevent dilution resulting from stock
splits, stock dividends or similar transactions.</p>
<p class=MsoList2 style='text-indent:50px; margin-top:0; margin-bottom:0' align="justify">&nbsp;</p>

<p class=MsoList2 style='text-indent:50px; margin-top:0; margin-bottom:0' align="justify">(2) Estimated solely for the purpose
of calculating the registration fee in accordance with Rule 457(c) and (h)
under the Securities Act of 1933, as amended, based on the average of the high
and low sale prices for the common stock on the NASDAQ Over-the-Counter
Bulletin Board on February 11, 2005.</p>
<p class=MsoList2 style='text-indent:50px; margin-top:0; margin-bottom:0' align="justify">&nbsp;</p>

<div style='border:none;border-bottom:double windowtext 4.5pt;padding:0in 0in 1.0pt 0in'>

<p class=MsoList2 style='border:medium none;padding:0in; text-indent:50px; margin-top:0; margin-bottom:0' align="justify">(3) These
shares represent shares of common stock issuable upon exercise of certain
outstanding options of the Registrant held a certain selling stockholder and,
pursuant to Rule 457(h) of the Securities Act of 1933, as amended, the proposed maximum offering price and the
proposed maximum aggregate offering price are estimated on the basis of the per
share exercise price of each of such options solely for purposes of calculating
the registration fee.</p>
<p class=MsoList2 style='border:medium none;padding:0in; text-indent:50px; margin-top:0; margin-bottom:0'>&nbsp;</p>

</div>

</div>

<p class="MsoList2" style="text-indent: 50px; border: medium none; margin-top: 0; margin-bottom: 0; padding: 0in">&nbsp;</p>
<p class="MsoList2" style="text-indent: 50px; border: medium none; margin-top: 0; margin-bottom: 0; padding: 0in">&nbsp;</p>

<hr color="#000080"><br clear=all
style='page-break-before:always'>


<div class=Section2>

<p class=CenterCapsBold align="center" style="margin-top: 0; margin-bottom: -5px">
<img border="0" src="image26.jpg" width="257" height="93"></p>

<p class=ItemTitle style="margin-top: 0; margin-bottom: 0"><b>REOFFER PROSPECTUS</b></p>

<p class=TitleCenterCapsBold16 style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
<p class=TitleCenterCapsBold16 style="margin-top: 0; margin-bottom: 6px" align="center">
<b><font size="5">1,167,492 Shares</font></b></p>

<p class=BoldCenterPH style="margin-top: 0; margin-bottom: 6px" align="center">
<b><font size="5">Seitel, Inc.</font></b></p>

<p class=BoldCenterPH style="margin-top: 0; margin-bottom: 6px" align="center">
<b><font size="5">Common Stock</font></b></p>

<p class=MsoBodyTextFirstIndent style="text-indent: 50px; margin-top: 0; margin-bottom: 0">&nbsp;</p>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px; margin-top: 0; margin-bottom: 0" align="justify">This reoffer prospectus relates to the offer
and sale from time to time of up to 1,167,492 shares of our common stock by the
selling stockholders named in this reoffer prospectus.&nbsp; This includes 1,129,032
shares of restricted stock granted to non-employee directors and an executive
officer under the Seitel, Inc. 2004 Stock Option Plan (the &quot;Plan&quot;) at various
times prior to the date of this reoffer prospectus, and 38,460 shares of our
common stock issued to non-employee directors pursuant to certain non-plan
restricted stock award agreements as of July 21, 2004.&nbsp; The selling
stockholders may offer the shares from time to time through public or private
transactions at prevailing market prices, at prices related to prevailing
market prices or at other negotiated prices.&nbsp; A selling stockholder may sell
none, some or all of the shares offered by this reoffer prospectus.&nbsp; We cannot
predict when or in what amounts a selling stockholder may sell any of the
shares offered by this reoffer prospectus.&nbsp; We will not receive any of the
proceeds from the sale of shares by the selling stockholders.</p>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px; margin-top: 0; margin-bottom: 0" align="justify">&nbsp;</p>

<p class=MsoBodyTextFirstIndent style="text-indent: 50px; margin-top: 0; margin-bottom: 0" align="justify">Our common stock is traded on the NASDAQ Over-the-Counter
Bulletin Board under the symbol &quot;SELA.OB.&quot;&nbsp; On February&nbsp;10,&nbsp;2005, the
closing price for our common stock was $1.31.</p>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px; margin-top: 0; margin-bottom: 0">&nbsp;</p>

<p class=CenterLine style="margin-top: 0; margin-bottom: 0" align="center"><u>_______________</u></p>
<p class=CenterLine style="text-indent: 50px; margin-top: 0; margin-bottom: 0">&nbsp;</p>

<p class=MsoBodyTextFirstIndent style="text-indent: 50px; margin-top: 0; margin-bottom: 0" align="justify"><b>INVESTING
IN OUR COMMON STOCK INVOLVES RISKS.&nbsp; CONSIDER CAREFULLY THE RISK FACTORS
BEGINNING ON PAGE&nbsp; FIVE OF THIS REOFFER PROSPECTUS.</b></p>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px; margin-top: 0; margin-bottom: 0">&nbsp;</p>

<p class=CenterLine style="margin-top: 0; margin-bottom: 0" align="center"><u>_______________</u></p>
<p class=CenterLine style="text-indent: 50px; margin-top: 0; margin-bottom: 0">&nbsp;</p>

<p class=MsoBodyTextFirstIndent style="text-indent: 50px; margin-top: 0; margin-bottom: 0" align="justify"><b>Neither
the Securities and Exchange
Commission nor any state securities commission has approved or disapproved of
these securities or determined if this reoffer prospectus is truthful or
complete.&nbsp; Any representation to the contrary is a criminal offense.</b></p>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px; margin-top: 0; margin-bottom: 0">&nbsp;</p>

<p class=CenterLine style="margin-top: 0; margin-bottom: 0" align="center"><u>_______________</u></p>
<p class=CenterLine style="text-indent: 50px; margin-top: 0; margin-bottom: 0">&nbsp;</p>

<p class=CenterNoBold style="text-indent: 50px; margin-top: 0; margin-bottom: 0">The date of this reoffer prospectus is February
14, 2005.</p>
<p class=CenterNoBold style="text-indent: 50px; margin-top: 0; margin-bottom: 0">&nbsp;</p>
<p class=CenterNoBold style="text-indent: 50px; margin-top: 0; margin-bottom: 0">&nbsp;</p>
<p class=CenterNoBold style="text-indent: 50px; margin-top: 0; margin-bottom: 0">&nbsp;</p>



</div>

<hr color="#000080"><br clear=all
style='page-break-before:always'>


<div class=Section3>

<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify"><b>You
should rely only on the information contained in this reoffer prospectus.&nbsp; We
have not authorized any other person to provide you with different or additional information.&nbsp; If anyone provides you
with different or additional information, you should not rely on it.&nbsp; The
information in this reoffer prospectus is accurate as of the date on the front
cover.</b></p>

<p class=CenterCapsBold style="margin-top: 0; margin-bottom: 0" align="center">
<b>TABLE OF CONTENTS</b></p>
<p class=CenterCapsBold style="margin-top: 0; margin-bottom: 0">&nbsp;</p>

<div align="center">
  <table border="0" cellpadding="0" style="border-collapse: collapse" width="500" id="table1">
    <tr>
      <td>&nbsp;</td>
      <td width="35" align="right">

<p class=RightAlignTOC style="margin-top: 0; margin-bottom: 0" align="right"><u><b>Page</b></u></p>
      </td>
    </tr>
    <tr>
      <td bgcolor="#E6F2FF"><a href="#_Toc95736829"><font color="#000080">The
      Company</font></a></td>
      <td width="35" align="right" bgcolor="#E6F2FF">
      <p style="margin-right: 7px">1</td>
    </tr>
    <tr>
      <td bgcolor="#E6F2FF"><a
href="#_Toc95736830"><font color="#000080">Risk Factors</font></a></td>
      <td width="35" align="right" bgcolor="#E6F2FF">
      <p style="margin-right: 7px">5</td>
    </tr>
    <tr>
      <td><a
href="#_Toc95736831"><font color="#000080">Forward-Looking Statements</font></a></td>
      <td width="35" align="right">
      <p style="margin-right: 7px">10</td>
    </tr>
    <tr>
      <td><a
href="#_Toc95736832"><font color="#000080">Unaudited Pro Forma Consolidated
      Financial Data</font></a></td>
      <td width="35" align="right">
      <p style="margin-right: 7px">11</td>
    </tr>
    <tr>
      <td bgcolor="#E6F2FF"><a
href="#_Toc95736833"><font color="#000080">Where You Can Find More Information</font></a></td>
      <td width="35" align="right" bgcolor="#E6F2FF">
      <p style="margin-right: 7px">11</td>
    </tr>
    <tr>
      <td bgcolor="#E6F2FF"><a
href="#_Toc95736834"><font color="#000080">Use of Proceeds</font></a></td>
      <td width="35" align="right" bgcolor="#E6F2FF">
      <p style="margin-right: 7px">12</td>
    </tr>
    <tr>
      <td><a
href="#_Toc95736835"><font color="#000080">Dilution</font></a></td>
      <td width="35" align="right">
      <p style="margin-right: 7px">12</td>
    </tr>
    <tr>
      <td><a
href="#_Toc95736836"><font color="#000080">The Selling Stockholders</font></a></td>
      <td width="35" align="right">
      <p style="margin-right: 7px">13</td>
    </tr>
    <tr>
      <td bgcolor="#E6F2FF"><a
href="#_Toc95736837"><font color="#000080">Plan of Distribution</font></a></td>
      <td width="35" align="right" bgcolor="#E6F2FF">
      <p style="margin-right: 7px">14</td>
    </tr>
    <tr>
      <td bgcolor="#E6F2FF"><a
href="#_Toc95736838"><font color="#000080">Legal Matters</font></a></td>
      <td width="35" align="right" bgcolor="#E6F2FF">
      <p style="margin-right: 7px">15</td>
    </tr>
    <tr>
      <td><a
href="#_Toc95736839"><font color="#000080">Experts</font></a></td>
      <td width="35" align="right">
      <p style="margin-right: 7px">15</td>
    </tr>
  </table>
</div>
<p>&nbsp;&nbsp;&nbsp;



</div>

<hr color="#000080"><br clear=all
style='page-break-before:always'>


<div class=Section4>

<h1 style='margin-left:0in;text-indent:0in' align="center"><a name="_Toc95736829">
<font size="5">The Company</font></a></h1>

<h2 style='margin-left:0in;text-indent:0in'><font size="4">Seitel, Inc.</font></h2>

<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">We are a leading provider of seismic data and
related geophysical services to the oil and gas industry in North America. Our
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. We have
ownership in an extensive library of proprietary onshore and offshore seismic
data that we have accumulated since 1982 and that we offer for license to a
wide range of oil and gas companies. Our customers utilize this data, in part,
to assist their identification of new geographical areas where subsurface
conditions are favorable for oil and gas exploration, to determine the size,
depth and geophysical structure of previously identified oil and gas fields,
and to optimize the development and production of oil and gas reserves.</p>

<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">We believe that our library of onshore seismic
data is one of the largest available for licensing in the United States and Canada. We also have ownership in a library of offshore data covering parts of the
U.S. Gulf of Mexico shelf and certain deep water areas in the western and
central U.S. Gulf of Mexico. We regularly add to the size of our seismic data
library by conducting new seismic data creation programs funded (or &quot;underwritten&quot;)
substantially by our customers in exchange for a license granting exclusive
access to newly acquired data for a limited period of time. We also acquire
entire seismic libraries from oil and gas companies which have discontinued
their exploration and production focus in a particular geographical area and no
longer require ownership of the library or which have determined to sell their
library for financial purposes. These acquisitions are sometimes funded with
cash, but typically are structured as non-monetary exchanges of seismic data,
whereby we acquire ownership of existing data from customers in exchange for an
assignment of a non-exclusive license to use data from our library. We also
create new value-added products by applying advanced seismic data processing or
other quantitative analytical techniques to selected portions of our library.</p>

<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">Our seismic data library includes both onshore
and offshore three-dimensional (&quot;3D&quot;) and two-dimensional (&quot;2D&quot;) data and
offshore multi-component data. We have ownership in over 33,000 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. The
majority of our seismic data library covers onshore regions within North
America, with a geographic concentration on the onshore and transition zone of
the U.S. Gulf Coast extending from Texas to Florida, western Canada, Mississippi, eastern Texas, the Rocky Mountain region and northern Louisiana. Most of our
remaining seismic data library covers the offshore Gulf of Mexico and eastern Canada. We conduct our seismic data creation and licensing business through two wholly
owned subsidiaries, Seitel Data, Ltd. in the United States and Olympic Seismic
Ltd. in Canada.</p>

<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">To support our seismic data licensing business,
we maintain warehouse and electronic storage facilities at our Houston, Texas headquarters and our Calgary, Alberta location. Through our wholly owned
subsidiaries, Seitel Solutions Ltd. and Seitel Solutions Canada Ltd.
(collectively, &quot;Solutions&quot;), we offer the ability to access and interact with
the seismic data we own and market via a standard web browser and the Internet.</p>

<h2 style='margin-left:0in;text-indent:0in' align="justify"><font size="4">Refocused Operations</font></h2>

<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">Because our historical success was built around
our seismic expertise and the quality of our library, we have refocused our
operations on our core competency of seismic data licensing. In 2002, we sold
substantially all of our assets which engaged in the exploration for and
development, production and sale of natural gas and oil, and we are marketing
what little amount remains of such assets for sale. By exiting the exploration
and production sector, we believe we have refocused our operations and are well-positioned
to achieve success in the future.</p>

<h2 style='margin-left:0in;text-indent:0in' align="justify"><font size="4">Industry Conditions</font></h2>

<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">The overall demand for seismic data and related
geophysical services is dependent upon spending by oil and gas companies for
exploration, production, development and field management activities which, in
turn, is driven largely by present and expected future prices for crude oil and
natural gas. This is impacted by global events and economic, tax and
environmental considerations. Weak global economic conditions combined with an
oversupply of oil and gas led to a weak commodity price environment in the
latter half of 2001, which led to a decrease in capital spending by our
customers on seismic data and geophysical services in late 2001 and the first
half of 2002. Since then, however, the relative strengthening of economic
conditions, the global political environment and colder weather in the United States have resulted in dramatic price increases. As of December 17, 2004, oil and
gas prices were $46.28 per barrel and $7.30 per mcf, respectively, or 74% and
88% above their five-year average.</p>

<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">In addition to commodity prices, the U.S. and
Canadian onshore rig counts have also increased significantly since 2002,
reaching an average onshore rig count of 1,417 rigs for the nine months ended
September 30, 2004, well above the five-year average onshore rig count of 1,097
rigs.</p>

<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">The attractive commodity price environment has
been a catalyst for the increase in exploration and production spending in both
the U.S. and Canada. Since the end of 1999, U.S. exploration and production
annual spending increased from $22.0 billion to $50.5 billion, and Canadian
exploration and production annual spending increased from $9.2 billion to $14.2
billion, representing average annual increases of 23% and 11%, respectively.
The recent level of high commodity prices has resulted in many oil and gas
companies focusing their efforts on development drilling to produce existing
reserves rather than expending time and capital on exploration. As a result, we
believe some exploration spending in the industry has been postponed. We do not
believe this recent situation represents a long-term trend. Industry analysts
estimate oil and gas reserves are being depleted at a rate of 5% to 10% per
year for the major oil and gas operators. As a result, there is an increasing
need in the oil and gas industry to continue exploration activity and replace
such reserves.</p>

<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">Another factor which we believe is an
indication of the improved condition of the oil and gas industry is the equity
performance of publicly traded exploration and production companies. Over the
past five years, the S&amp;P small-cap and mid-cap exploration and production
indices have increased an average of 19% and 21% per year, respectively. This
performance is a result of increased commodity prices as well as the companies'
abilities to gain attractive returns on their increased capital spending. To
maintain their success, these companies will have to continue to find new and
exploit existing oil and gas reserves, which will require significant amounts
of capital spending. Many of these companies are our clients and are
representative of the types of clients we target for our products and services.</p>

<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">Attractive commodity pricing, strong rig
counts, the need to replace oil and gas reserves, and the favorable performance
of oil and gas companies are expected to continue. Barring unforeseen world
events and economic conditions, we anticipate improved seismic industry market
conditions.</p>

<h2 style='margin-left:0in;text-indent:0in' align="justify"><font size="4">Our Current Strategies</font></h2>

<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">We
have implemented a plan to refocus our activities, both functionally and
geographically, on areas in which we have historically experienced meaningful
success or in which we believe we can achieve significant growth in the future.
As a result, we made some changes to our operating philosophy, including:</p>
<div align="left">
<table border="0" cellpadding="0" style="border-collapse: collapse" width="750" id="table2">
  <tr>
    <td width="49" align="left">
    <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
    <td width="49" align="left" valign="top"><LI>
    <p style="margin-top: 0; margin-bottom: 0"></LI></td>
    <td align="justify">
    <p style="margin-top: 0; margin-bottom: 0">discontinuation of our oil and gas exploration and production activities
    and disposal of substantially all of our oil and gas assets and properties;</p>
    <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
  </tr>
  <tr>
    <td width="49" align="left">&nbsp;</td>
    <td width="49" align="left" valign="top"><LI>
    <p style="margin-top: 0; margin-bottom: 0"></LI></td>
    <td align="justify">
    <p style="margin-top: 0; margin-bottom: 0">discontinuation of cash investments for recording new data in the
    offshore U.S. seismic market, which is dominated by competitors who deploy
    their own marine vessels and field equipment to service their own data
    libraries;</p>
    <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
  </tr>
  <tr>
    <td width="49" align="left">&nbsp;</td>
    <td width="49" align="left" valign="top"><LI>
    <p style="margin-top: 0; margin-bottom: 0"></LI></td>
    <td align="justify">
    <p style="margin-top: 0; margin-bottom: 0">discontinuation of additional capital investments in seismic data in
    geographical areas such as Alabama, Michigan and North Dakota because we do
    not believe these areas have sufficient revenue producing potential; and</p>
    <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
  </tr>
  <tr>
    <td width="49" align="left">&nbsp;</td>
    <td width="49" align="left" valign="top"><LI>
    <p style="margin-top: 0; margin-bottom: 0"></LI></td>
    <td align="justify">
    <p style="margin-top: 0; margin-bottom: 0">reduction of the mission for our Solutions division to focus on internal
    requirements with a very limited participation in the external market in the
    near term.</td>
  </tr>
</table>
</div>
<p style="margin-top: 0; margin-bottom: 0" align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</p>
<p style="margin-top: 0; margin-bottom: 0; text-indent:50px" align="justify">To complement the fundamental changes made to
our operating philosophy, management implemented cost reduction measures in the
second half of 2002, including reductions in our work force, the consolidation
of our Houston office location (resulting in the relocation of our
headquarters), the reduction of office space used in our Calgary operations, an
overhaul of our compensation structure, and the imposition of strict controls
on all spending.</p>
<p style="margin-top: 0; margin-bottom: 0; text-indent:50px" align="justify">&nbsp;</p>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px; margin-top:0; margin-bottom:0" align="justify">In addition to the significant operating
changes we made, we are guided by operating philosophies that are fundamental
to the success of our business and that we believe make us unique compared with
our largest competitors:</p>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px; margin-top:0; margin-bottom:0" align="justify">&nbsp;</p>
<div align="left">
<table border="0" cellpadding="0" style="border-collapse: collapse" width="750" id="table3">
  <tr>
    <td width="49" align="left">
    <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
    <td width="49" align="left" valign="top"><LI>
    <p style="margin-top: 0; margin-bottom: 0"></LI></td>
    <td align="justify">
    <p style="margin-top: 0; margin-bottom: 0">We intend to continue to grow our
    seismic data library using a combination of recording new data, cash
    purchases, non-monetary exchanges and creating new value-added products from
    our existing data.</p>
    <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
  </tr>
  <tr>
    <td width="49" align="left">&nbsp;</td>
    <td width="49" align="left" valign="top"><LI>
    <p style="margin-top: 0; margin-bottom: 0"></LI></td>
    <td align="justify">
    <p style="margin-top: 0; margin-bottom: 0">We do not own or maintain seismic
    data gathering or field equipment and crews. Instead, we outsource these
    services, which gives us the flexibility to respond appropriately to
    changing market conditions, and renders our cash flows less susceptible to
    volatility. We believe this also enables us to select vendors with the best
    price, equipment and skill sets for a particular environment, geographical
    location or geophysical objective, and provides us with access to
    state-of-the-art equipment and emerging technologies.</p>
    <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
  </tr>
  <tr>
    <td width="49" align="left">&nbsp;</td>
    <td width="49" align="left" valign="top"><LI>
    <p style="margin-top: 0; margin-bottom: 0"></LI></td>
    <td align="justify">
    <p style="margin-top: 0; margin-bottom: 0" align="justify">We leverage our
    strong geophysical, technical and field operating management with our
    third-party outsourcing to align our interests with those of our
    underwriting customers. We believe this has allowed us to become a leading
    provider in certain core areas where local expertise is important. We
    believe we have developed expertise in certain areas of southern Louisiana,
    Gulf Coast Texas, Alberta and northeast British Columbia, and that there are
    opportunities to continue expansion in these areas and to repeat these
    experiences in the U.S. Rocky Mountain region, northern Louisiana and
    certain selected areas of the market outside North America.</p>
    <p style="margin-top: 0; margin-bottom: 0" align="justify">&nbsp;</p></td>
  </tr>
  <tr>
    <td width="49" align="left">&nbsp;</td>
    <td width="49" align="left" valign="top"><LI>
    <p style="margin-top: 0; margin-bottom: 0"></LI></td>
    <td align="justify">
    <p style="margin-top: 0; margin-bottom: 0">We will not participate in
    speculative seismic data shoots. Instead, we seek significant underwriting
    levels before undertaking new acquisition projects, which is crucial to our
    success. Our goal is to attain 70% underwriting levels for our new seismic
    acquisition projects.</p>
    <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
  </tr>
  <tr>
    <td width="49" align="left">&nbsp;</td>
    <td width="49" align="left" valign="top"><LI>
    <p style="margin-top: 0; margin-bottom: 0"></LI></td>
    <td align="justify">
    <p style="margin-top: 0; margin-bottom: 0">We pursue an aggressive marketing
    strategy to licensing our seismic data library.</p>
    <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
  </tr>
  <tr>
    <td width="49" align="left">&nbsp;</td>
    <td width="49" align="left" valign="top"><LI>
    <p style="margin-top: 0; margin-bottom: 0"></LI></td>
    <td>
    <p style="margin-top: 0; margin-bottom: 0">We intend to maintain an
    extremely disciplined approach to making operating and capital expenditures.</td>
  </tr>
</table>
</div>

</div>
<div class=Section4>

<h2 style='margin-left:0in;text-indent:0in' align="justify"><font size="4">Our Competitive Strengths</font></h2>
<p class=BodyText5Font10 style="text-indent: 50px" align="justify">We believe that we have the following competitive
strengths:</p>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify"><b><i>Leading Market Position</i></b>. Within
our industry, we are considered to be one of the leading providers of seismic
data in North America. We believe our library of onshore 3D seismic data is one
of the largest available for licensing in the U.S. and Canada. We have ownership of over 33,000 square miles of 3D seismic data, the majority of
which is concentrated primarily in the onshore Gulf Coast of Texas, Louisiana
and Mississippi, western Canada and the offshore Gulf of Mexico. In addition,
we have ownership in 1.1 million linear miles of 2D seismic data, which we
believe makes us one of the largest providers of 2D data in North America.</p>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify"><b><i>Data Ownership Provides the Opportunity to Realize Long-Term Revenue Streams</i></b>. We own our seismic data and are
able to license the data an unlimited number of times, allowing for a
lengthened life of our seismic data library. The ability to license the seismic
data multiple times, as well as the commercial longevity of our seismic data,
is a result of many factors, including multiple interpretations of the same
data set, changes in ownership of mineral interests, new discoveries of
hydrocarbons, advances in drilling and production technology, creation of oil
and gas distribution infrastructures, and the advent of new seismic processing
techniques. Most of our data is expected to generate revenues for 10 years or
more. In some instances, samples of our older 2D data are still being licensed
after 25 years. The current weighted average of our 3D onshore data library is
3.5 years. We believe there is minimal obsolescence risk regarding our seismic
library.</p>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify"><b><i>Low Cost Business Model</i></b>. In order
to remain profitable in volatile business cycles, we believe it is essential to
have a low cost operating structure. We strive to maintain an efficient base of
assets and employees with which to conduct our operations. We do not own
seismic acquisition equipment or employ seismic acquisition crews, but rather,
engage third-party contractors with qualified equipment on an as-required basis
to shoot new data. We believe our decision to engage third party contractors on
an as-required basis results in substantially less volatility in our cash flows
by allowing us to respond more quickly to changes in the demand for our
products and services and minimizing our ongoing capital requirements. We do
not participate in speculative seismic shoots and impose strict capital
investment thresholds with targeted underwriting levels.</p>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify"><b><i>Leading Provider in Dominant Areas</i></b>.
Onshore seismic data collection requires a high degree of technical expertise,
extensive permitting and geographical knowledge. Over the past 20 years, our
personnel have developed a strong reputation for having these necessary skills.
We believe our vast experience, combined with our large and contiguous
database, encourages customers looking to acquire data in our area of
operations to select us as their provider. We also believe that our experience
and relationships with the relevant permitting agencies give us an advantage
over our competitors.</p>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify"><b><i>Diversified Customer Base</i></b>. We
market our seismic data to over 1,300 customers in the oil and gas industry,
and we have license arrangements with in excess of 1,000 customers. In 2003,
four of our top ten customers were rated investment grade by Standard &amp;
Poor's, none of our customers accounted for more than 10% of total revenues,
and our top 10 customers accounted for approximately 40% of total revenues. We
have been providing seismic data to several of our largest customers for over
10 years.</p>
<h2 style='margin-left:0in;text-indent:0in' align="justify"><font size="4">Our Plan of Reorganization</font></h2>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">In February 2002, we determined that it was
appropriate to change our revenue recognition policies for seismic data licensing
and certain data creation contracts. As a result, we restated our results of
operations for the nine months ended September 30, 2001, and for our fiscal
year ended December 31, 2000. The restatement, coupled with poor first quarter
2002 financial results, caused our covenant default on our $255 million
principal amount of senior unsecured notes (referred to in this reoffer
prospectus as the &quot;Old Notes&quot;). After such default, we and substantially all of
our United States subsidiaries negotiated a series of standstill agreements
with the initial holders of the Old Notes while the parties attempted to
negotiate a restructuring. Our negotiations with the holders of the Old Notes
were not successful and on June 6, 2003, certain of the holders of the Old Notes
filed, under Chapter 11 of the United States Bankruptcy Code, involuntary
petitions against us and sixteen of our subsidiaries that guaranteed the Old
Notes. On July 22, 2003, we filed voluntary petitions for relief under Chapter
11 of the United States Bankruptcy Code. The involuntary cases were dismissed
on July 25, 2003. The Bankruptcy Court confirmed our Third Amended Joint Plan
of Reorganization, as modified, supplemented or amended (the &quot;Reorganization
Plan&quot;), on March 18, 2004 and it became effective as of July 2, 2004.</p>
<h2 style='margin-left:0in;text-indent:0in' align="justify"><font size="4">Other Information</font></h2>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">As used in this reoffer prospectus, unless the
context otherwise requires, references to the &quot;Company,&quot; &quot;Seitel,&quot; &quot;we,&quot; &quot;us&quot;
or &quot;our&quot; mean Seitel, Inc., its subsidiaries and its interests in other
entities.&nbsp; We were incorporated in the State of Delaware in 1982. Our principal
executive offices are located at 10811&nbsp;South Westview Circle Drive, Suite 100, Building C, Houston, Texas 77043, and our telephone number at that address is
(713) 881-8900. Our website is located at <i>www.seitel.com</i>. Information
contained on our website is not a part of this reoffer prospectus.</p>
<h1 style='margin-left:0in;text-indent:0in' align="center">
<a name="_Toc95736830"><font size="5">Risk Factors</font></a></h1>
<p class=BodyTextFirstIndentItalic style="text-indent: 50px" align="justify"><i>In considering whether to purchase our
common stock, we urge you to carefully consider all of the information we have
included in this reoffer prospectus and any reoffer prospectus supplement. In
particular, we urge you to carefully consider the risk factors described below
and other information contained in this reoffer prospectus. In addition, we
urge you to read &quot;Forward-Looking Statements,&quot; where we describe additional
uncertainties associated with our business and forward-looking statements in
this reoffer prospectus.</i></p>
<h2 style='margin-left:0in;text-indent:0in'><font size="4">Our substantial level of
indebtedness could adversely affect our financial condition.</font></h2>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">We have a significant amount of leverage and
interest expense resulting from new indebtedness incurred in the financing and
other transactions completed in connection with the Reorganization Plan,
indebtedness of our Canadian subsidiaries, and other indebtedness in respect of
certain capital lease obligations. Subject to certain restrictions and
limitations in the indenture and in our new revolving credit facility, we may
incur additional indebtedness.</p>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">On the effective date of the Reorganization
Plan, we completed the sale of our outstanding 11&frac34;% Senior Notes (the &quot;Senior
Notes&quot;), which were issued at an original issue discount. These proceeds were
used to partially fund payments of allowed creditors' claims required under the
Reorganization Plan. On April 16, 2004, we entered into a new revolving credit
facility with Wells Fargo Foothill, Inc. (&quot;WFF&quot;) pursuant to which a revolving
loan commitment of $30 million, subject to borrowing base limitations, was made
available to us for borrowing on the effective date of the Reorganization Plan.
Permitted borrowings under the new revolving credit facility will be used by us
from time to time to fund our working capital requirements. Accordingly, while
the principal amount of our indebtedness has been reduced, our annual interest
expense is higher than it was prior to the effective date of the Reorganization
Plan and our total annual debt service requirements continue to be substantial.
The funds required to satisfy these requirements, which will derive principally
from our operating cash flows, will not be available for working capital or to
make investments in the future growth and development of our business.</p>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">As of September 30, 2004, we and the guarantors
of the Senior Notes had approximately $191.8 million of total indebtedness,
including $2.8 million of secured indebtedness, and our consolidated annual
debt service requirements together with the guarantors' aggregated
approximately $24.7 million, which is approximately $4.2 million higher than
our historical annual debt service. Although we issued $193 million aggregate
principal amount at maturity of Senior Notes, such Senior Notes were issued at
a discount of 2.325% resulting in gross proceeds to us of approximately $188.5
million. Thus, while not receiving gross proceeds equal to the principal amount
of the Senior Notes, we are obligated to repay the full principal amount
thereof at maturity and, subject to certain exceptions, we may not optionally
redeem the Senior Notes prior to maturity.</p>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px; margin-top:0; margin-bottom:0" align="justify">Our high level of indebtedness and annual debt
service requirements could have important consequences to you. For example, it
could:</p>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px; margin-top:0; margin-bottom:0" align="justify">&nbsp;</p>
<div align="left">
<table border="0" cellpadding="0" style="border-collapse: collapse" width="750" id="table4">
  <tr>
    <td width="49" align="left">
    <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
    <td width="49" align="left" valign="top"><LI>
    <p style="margin-top: 0; margin-bottom: 0"></LI></td>
    <td>
<p style="margin-top: 0; margin-bottom: 0" align="justify">require us to
dedicate a substantial portion of our cash flow from operations to interest and
principal payments on our indebtedness, thereby reducing the availability of our
operating cash flows for other purposes, such as capital expenditures, funding
seismic data acquisitions and working capital;</p>
    <p style="margin-top: 0; margin-bottom: 0" align="justify">&nbsp;</p></td>
  </tr>
  <tr>
    <td width="49" align="left">&nbsp;</td>
    <td width="49" align="left" valign="top"><LI>
    <p style="margin-top: 0; margin-bottom: 0"></LI></td>
    <td>
<p style="margin-top: 0; margin-bottom: 0" align="justify">limit our flexibility
in planning for, or reacting to, changes in our business and the industry in
which we operate;</p>
    <p style="margin-top: 0; margin-bottom: 0" align="justify">&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width="49" align="left">&nbsp;</td>
    <td width="49" align="left" valign="top"><LI>
    <p style="margin-top: 0; margin-bottom: 0"></LI></td>
    <td>
<p style="margin-top: 0; margin-bottom: 0" align="justify">increase our
vulnerability to general adverse economic and industry conditions;</p>
    <p style="margin-top: 0; margin-bottom: 0" align="justify">&nbsp;</p></td>
  </tr>
  <tr>
    <td width="49" align="left">&nbsp;</td>
    <td width="49" align="left" valign="top"><LI>
    <p style="margin-top: 0; margin-bottom: 0"></LI></td>
    <td>
    <p style="margin-top: 0; margin-bottom: 0">make it more difficult for us to
    satisfy our obligations on the Senior Notes;</p>
    <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
  </tr>
  <tr>
    <td width="49" align="left">&nbsp;</td>
    <td width="49" align="left" valign="top"><LI>
    <p style="margin-top: 0; margin-bottom: 0"></LI></td>
    <td>
    <p style="margin-top: 0; margin-bottom: 0">expose us to fluctuations in the
    interest rate environment because the new revolving credit facility is at a
    variable rate of interest; and</p>
    <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
  </tr>
  <tr>
    <td width="49" align="left">&nbsp;</td>
    <td width="49" align="left" valign="top"><LI>
    <p style="margin-top: 0; margin-bottom: 0"></LI></td>
    <td>
    <p style="margin-top: 0; margin-bottom: 0">&nbsp;limit our ability to borrow
    additional funds.</td>
  </tr>
</table>
</div>

</div>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">Our ability to make required payments of
principal and interest on borrowings under our new revolving credit facility
and in respect of the Senior Notes, incur additional indebtedness, and comply
with our various debt covenants, will depend primarily on our ability to
generate substantial operating cash flows. We expect to obtain the funds
necessary to pay our operating and other expenses and principal and interest on
the Senior Notes, borrowings under our new revolving credit facility and our
other indebtedness, from our operating cash flows and, if required, from
additional borrowings (to the extent available under our new revolving credit
facility and otherwise subject to our borrowing base). Our ability to satisfy
our payment obligations, therefore, depends substantially on our future
operating and financial performance, which necessarily will be affected by, and
subject to, industry, market, economic and other factors. We will not be able
to predict or control many of these factors, such as economic conditions in the
markets where we operate and competitive pressures.</p>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">If, for any reason, we do not have sufficient
funds from operating cash flows, cash and cash equivalents on hand, and borrowings
available under our new revolving credit facility to pay principal and
interest, when due, on the Senior Notes and on our other outstanding debt
obligations (including borrowings under the new revolving credit facility), we
will be required to seek to refinance all or a portion of our existing debt,
sell assets or seek to borrow additional funds or raise additional equity
capital. We cannot guarantee that we would be able to complete any of the
aforementioned refinancing transactions on terms that are commercially
reasonable or otherwise acceptable to us, if at all. In addition, the terms of
our agreements governing our indebtedness, including our new revolving credit
facility and the indenture governing the Senior Notes, presently restrict us
from implementing such refinancing transactions. The failure to generate
sufficient operating cash flows could significantly and adversely affect the
value of the Senior Notes and our ability to pay principal of and interest on
the Senior Notes.</p>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">Our new revolving credit facility contains
covenants requiring us to achieve and maintain certain financial results, and
restricts, among other things, the amount of our capital expenditures and our
ability to borrow money, grant additional liens on our assets, make particular
types of investments and restricted payments, sell our assets, and merge or
consolidate. Additionally, the indenture governing the Senior Notes contains
covenants that, among other things, limit our ability to incur certain
additional indebtedness, incur indebtedness that is subordinate to any other
indebtedness unless such indebtedness is expressly subordinate to the Senior
Notes and the guarantees, pay cash dividends or make other cash distributions
on or repurchase or redeem for cash our capital stock, make certain
investments, sell assets without using the net proceeds thereof as set forth in
the indenture, make certain capital expenditures in excess of $65 million plus
unused excess cash flow (as defined in the indenture governing the Senior Notes)
in any fiscal year, grant and permit certain liens, enter into sale-leaseback
transactions, enter into agreements affecting the ability of our restricted
subsidiaries to pay dividends, enter into transactions with affiliates, merge,
consolidate or sell all or substantially all of our assets, and grant security
interests or liens on our assets. In addition, the indenture governing the
Senior Notes provides that subject to certain conditions, if, at the end of
each fiscal year we have excess cash flow in excess of $5 million, we will be
required to use 50% of excess cash flow to fund an offer to repurchase the
Senior Notes on a pro rata basis at 100% of the principal amount of the Senior
Notes plus accrued and unpaid interest to the repurchase date. If such future
repurchase offers are accepted, the funds expended would not otherwise be
available to be used by us for other corporate purposes. Borrowings under the
new revolving credit facility are secured by a first priority, perfected
security interest in, and lien on, all of our U.S. tangible and intangible
assets, and we have pledged to WFF all of the issued and outstanding capital
stock of our U.S. subsidiaries. Any default in respect of these covenants could
materially and adversely affect our ability to conduct our business in the
ordinary course, enter into business transactions and impair our rights under
our other commercial agreements.</p>
<h2 style='margin-left:0in;text-indent:0in' align="justify"><font size="3">Failure to comply with the SEC's
final judgment of permanent injunction entered on consent against us could
adversely affect our business, and could subject us to further SEC
investigations, enforcement action, criminal prosecution and significant
penalties.</font></h2>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">Seitel was the subject of a formal
investigation by the SEC's Division of Enforcement. Seitel cooperated fully
with the SEC during the course of its investigation, and reached a consensual
resolution of the SEC's civil complaint resulting in its consent to a final
judgment of permanent injunction (the &quot;SEC Injunction&quot;) being entered on June
16, 2003 in the United States District Court for the Southern District of
Texas, Houston Division. The agreement for the entry of the SEC Injunction was
without admitting or denying the allegations in the SEC's complaint, which had
alleged violations of the reporting, books and records, internal controls and
proxy statement provisions of the Securities Exchange Act of 1934, as amended
(the &quot;Exchange Act&quot;) and rules and regulations adopted under the Exchange Act.&nbsp;
Seitel's chief executive officer and chief financial officer at the time of the
events giving rise to the SEC's complaint have been replaced.</p>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">The SEC Injunction, by its terms, permanently
restrains and enjoins us from, among other things: (1) filing with the SEC any
annual report under the Exchange Act that contains any untrue statement of a
material fact, which omits to state any material fact necessary in order to
make the statements made, in the light of the circumstances under which they
were made, not misleading, or that omits to disclose any information required
to be disclosed, (2) failing to make and keep accurate books, records and
accounts, (3) failing to devise and maintain an adequate system of internal
accounting controls and procedures, or (4) soliciting any proxy or consent or
authorization in respect of any security registered under Section 12 of the
Exchange Act in contravention of the SEC's proxy rules, or making any
solicitation by means of any proxy statement, form of proxy, notice of meeting
or other communication subject to the SEC's proxy rules which, at the time and
in light of the circumstances under which it is made, is false or misleading
with respect to any material fact, or which omits to state any material fact
necessary in order to make the statements made, in light of the circumstances
under which they were made, not misleading.</p>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">If we fail to comply with any of the provisions
of the SEC Injunction, such failure could adversely affect us, and the market
price of our common stock and the Senior Notes could significantly decline.</p>
<h2 style='margin-left:0in;text-indent:0in' align="justify"><font size="3">Limitations on our ability to
utilize net operating losses and other tax benefits may result in future net
operating income being taxable income.</font></h2>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">Companies, which have had a change in ownership
as defined by the Internal Revenue Code of 1986, as amended (the&nbsp;&quot;Code&quot;),
are subject to limitations on certain tax attributes. The testing period for
ownership changes is a three-year moving period. We have had significant
ownership changes since the effective date of our Reorganization Plan, but do
not yet know whether there has been a change in ownership as defined by the
Code. In any event, we do not expect a significant impact to our financial
position or results of operation because we have a full valuation allowance
against the tax attributes subject to these limitations.</p>
<h2 style='margin-left:0in;text-indent:0in' align="justify"><font size="3">Our internal controls for financial
reporting and our disclosure controls and procedures may not prevent all
possible errors that could occur. Internal controls for financial reporting and
disclosure controls and procedures, no matter how well designed and operated, can
provide only reasonable, not absolute, assurance that the control system's
objective will be met.</font></h2>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">Each quarter, our chief executive officer and
chief financial officer evaluate our internal controls for financial reporting
and our disclosure controls and procedures, which includes a review of the
objectives, design, implementation and effect of the controls in respect of the
information generated for use in our periodic reports. In the course of our
controls evaluation, we seek to identify data errors, control problems and to
confirm that appropriate corrective action, including process improvements,
were being undertaken. The overall goals of these various evaluation activities
are to monitor our internal controls for financial reporting and our disclosure
controls and procedures and to make modifications as necessary. Our intent in
this regard is that our internal controls for financial reporting and our
disclosure controls and procedures will be maintained as dynamic systems that
change (including with improvements and corrections) as conditions warrant.</p>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">In connection with the post-December 31, 2003
audit procedures conducted by Ernst &amp; Young LLP, independent registered
accounting firm (&quot;Ernst &amp; Young&quot;), we identified, and Ernst&nbsp;&amp;
Young concurred, that a material weakness existed with our internal controls
for financial reporting which arose from our Reorganization Plan having been
confirmed on March 18, 2004, thereby requiring the expensing of an item carried
by us as a prepaid expense and reduction of certain disputed pre-bankruptcy
petition claims which had a partial offsetting effect. We accordingly amended
our Quarterly Report on Form 10-Q for the quarter ended March 31, 2004.</p>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">A control system, no matter how well designed
and operated, can provide only reasonable, not absolute, assurance that the
control system's objectives will be satisfied. Our management has concluded
that our internal controls for financial reporting and our disclosure controls
and procedures are designed to give a reasonable assurance that they are
effective to achieve their objectives. We cannot provide absolute assurance
that all possible future control issues within our company have been detected.
These inherent limitations include the real world possibility that judgments in
our decision-making could be faulty, and that isolated breakdowns could occur
because of simple human error or mistake. The design of our system of controls
is based in part upon certain assumptions about the likelihood of future
events, and there can be no assurance that any design will succeed absolutely
in achieving our stated goals under all potential future or unforeseeable
conditions. Because of the inherent limitations in a cost-effective control
system, misstatements due to error could occur and not be detected.</p>
<h2 style='margin-left:0in;text-indent:0in' align="justify"><font size="3">Our business could be adversely
affected by low exploration and development spending by oil and gas companies
and by low oil and gas prices.</font></h2>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">Our business depends upon exploration and
development spending by oil and gas companies. Capital expenditures by oil and
gas companies depend upon several factors, including actual and forecasted
petroleum commodity prices and the companies' own short-term and strategic
plans. These capital expenditures may also be affected by worldwide economic
conditions. While we anticipate continued attractive commodity pricing, there
can be no assurance that oil and gas prices will not decline in the future. Low
oil and gas prices could result in decreased exploration and development
spending by oil and gas companies, which could affect our seismic data
business. Any future decline in oil and gas prices or sustained periods of
reduced capital expenditures by oil and gas companies could result in a
material adverse effect on our results of operations and cash flow.</p>
<h2 style='margin-left:0in;text-indent:0in' align="justify"><font size="3">A downturn in the availability of
private equity could have a negative impact on the ability of our customers to
raise capital necessary to purchase our seismic data.</font></h2>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">Many of our customers
consist of independent oil and gas companies and private prospect-generating
companies that rely primarily on private equity capital to fund their exploration, production,
development and field management activities. A significant downturn in the
availability of private equity capital could have a material adverse impact on
the ability of such companies to obtain funding necessary to purchase our
seismic data which, in turn, could have a material adverse effect on our
results of operations and cash flow.</p>
<h2 style='margin-left:0in;text-indent:0in' align="justify"><font size="3">We invest significant amounts of
money in acquiring and processing seismic data for our data library with only
partial underwriting of the costs by customers.</font></h2>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">We invest significant amounts of money in
acquiring and processing new seismic data to add to our data library. A portion
of these investments is funded by customer underwriters or sponsors, while the
remainder is sought to be recovered through future data licensing fees. The
amounts of underwriting and sponsorship and of these future data licensing fees
are uncertain and depend on a variety of factors, including the market prices
of oil and gas, customer demand for seismic data in our library, availability
of similar data from competitors and governmental regulations affecting oil and
gas exploration. We may not be able to recover all of the costs of or earn any
return on such investments. In periods where sales do not meet original
expectations, we may be required to record additional amortization and/or
impairment charges to reduce the carrying value of our data library, which
charges may be material to operating results in any period. In addition, timing
of the receipt of license fees can vary greatly from period to period.
Technological or regulatory changes or other developments could also adversely
affect the value of the data.</p>
<h2 style='margin-left:0in;text-indent:0in' align="justify"><font size="3">Because our business is
concentrated in the U.S. Gulf Coast and Canada, it could be adversely affected
by developments in the oil and gas business that affect these areas.</font></h2>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">While we have seismic surveys in other areas,
most of the seismic data in our library covers areas along the U.S. Gulf Coast,
offshore in the U.S. Gulf of Mexico and in Canada. Because of this geographic
concentration, our results of operations and our cash flow could be materially
and adversely affected by events relating primarily to one of these regions
even if conditions in the oil and gas industry worldwide were favorable.</p>
<h2 style='margin-left:0in;text-indent:0in' align="justify"><font size="3">The amounts we amortize from our
data library each period have fluctuated in the past, and these fluctuations
may result in future material impairment charges.</font></h2>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">We amortize the cost of our seismic data library
based, in part, on our estimates of future cash sales of data, excluding non-monetary
exchanges and deferred revenue. Changes in estimates of future sales could
result in impairment charges. Substantial changes in amortization rates can
have a significant effect on our reported results of operations. Additionally,
our accounting policy requires that we record amortization of our seismic data
library based on the greater of the income forecast method or the straight-line
method over the data's useful life.&nbsp; In the fourth quarter of 2002, we revised
the estimated useful life of our seismic data library from ten years to five
years for offshore data and from ten years to seven years for onshore data,
resulting in additional amortization charges of $45.7 million in the fourth
quarter of 2002. In the third quarter of 2004, we further revised the estimated
useful life of our seismic data library from five years to four years for
offshore data and from seven years to four years for onshore data, resulting in
additional amortization charges of $59.1 million in the third quarter of 2004.</p>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">During 2003 and 2002, Seitel recorded
impairment charges of $30 million and $83 million, respectively, related to
several different components of our data library. Additional impairment charges
may also be required in the future based on industry conditions and our results
of operations.</p>
<h2 style='margin-left:0in;text-indent:0in;page-break-after:avoid' align="justify">
<font size="3">Extensive
governmental regulation of our business affects our operations.</font></h2>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">Our operations are subject to a variety of
federal, provincial, state, foreign and local laws and regulations, including
environmental laws. We invest financial and managerial resources to comply with
these laws and related permit requirements. Failure to timely obtain required
permits may result in delays in acquiring new data for the data library or
cause operating losses. Because these laws and our business may change from
time to time, we cannot predict the future cost of complying with these laws,
and expenditures to ensure our compliance could be material in the future. Modification
of existing laws or regulations or adoption of new laws or regulations limiting
exploration or production activities by oil and gas companies could adversely
affect us by reducing the demand for our seismic data.</p>
<h2 style='margin-left:0in;text-indent:0in' align="justify"><font size="3">Our competitors may have certain advantages.</font></h2>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">Competition among geophysical service providers
historically has been, and will continue to be, intense. Certain competitors
have significantly greater financial and other resources than we do. These
larger and better financed operators could enjoy an advantage over us in a
competitive environment for contract awards and data sales and in the
development of new technologies.</p>
<h2 style='margin-left:0in;text-indent:0in' align="justify"><font size="3">Our operating results may vary due
to circumstances beyond our control.</font></h2>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">Our operating results and available cash flow
may, in the future, vary in material respects from quarter to quarter. Factors
that could cause variations include (1) timing of the receipt and commencement
of contracts for data acquisition, (2) our customers' budgetary cycles and
their effect on the demand for geophysical activities, (3) seasonal factors and
(4) the timing of sales and selections of significant geophysical data from our
data library, which are not typically made in a linear or consistent pattern.
Reduced actual or estimated future sales may result in a requirement to record
impairment charges to reduce the carrying value of our data library. Such
charges, if required, could be material to operating results in the periods in
which they are recorded. For purposes of evaluating potential impairment
losses, we estimate the future cash flows attributable to a library component
by evaluating historical revenue trends, oil and gas prospectivity in
particular regions, general economic conditions affecting our customer base,
expected changes in technology and other factors that we deem relevant.&nbsp; The
estimation of future cash flows is highly subjective, inherently imprecise and
could change materially from period to period based on the factors described in
the immediately preceding sentence, among others.&nbsp; Accordingly, if conditions
change in the future, we may record further impairment losses relative to our
seismic data library, which could be material to our results of operations in
any particular reporting period.</p>
<h2 style='margin-left:0in;text-indent:0in' align="justify"><font size="3">We may face risks associated with
our foreign revenue generating activities.</font></h2>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">Portions of our revenues are derived from our
Canadian activities and operations and, as a result, are denominated in
Canadian dollars. We are subject to foreign currency exchange rate risk on cash
flows related to sales, expenses, financing and investing transactions in
currencies other than the U.S. dollar. Foreign currency fluctuations could
result in a material adverse affect our results of operations.</p>
<h2 style='margin-left:0in;text-indent:0in' align="justify"><font size="3">We may be unable to attract and
retain key employees.</font></h2>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">Our success depends upon attracting and
retaining highly skilled geophysical professionals and other technical
personnel. A failure to continue to attract and retain such individuals could
adversely affect our ability to compete in the geophysical services industry.
We may confront significant and potentially adverse competition for key
personnel, particularly during periods of increased demand for geophysical
services. Our success also will depend to a significant extent upon the
abilities and efforts of members of our senior management, the loss of whom
could adversely affect our business. Moreover, certain of our senior executive
officers have a very limited history of working together and may not be able to
develop an effective working relationship. Our president and chief executive
officer was appointed in December 2004, after serving as our chief financial
officer since May 2004. Currently, we are working to fill our chief financial
officer position. The failure of our executive officers and management personnel
to develop an effective or sustained working relationship could require us to
incur additional expenses and devote substantial senior management time and
resources to identify qualified replacement personnel.&nbsp; We cannot be certain
that our senior executives will continue to be employed by us for an indefinite
period of time and, if they do, how long they will remain so employed. Our
inability to attract and retain key personnel could have a material adverse
effect on our ability to manage our business properly.</p>
<h2 style='margin-left:0in;text-indent:0in' align="justify"><font size="3">Mellon HBV and ValueAct Capital
Partners, L.P. each own a large percentage of our common stock, which would
enable them to influence the election of our directors and other matters
requiring the vote of our stockholders.</font></h2>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">Mellon HBV Alternative Strategies, LLC (&quot;Mellon
HBV&quot;) and its affiliates have represented to us that they beneficially own
36,518,051 shares (or 21.9%) of our outstanding common stock on a fully diluted
basis. ValueAct Capital Partners, L.P. (&quot;ValueAct&quot;) and its affiliates have
represented to us that they own 20,330,063 shares (or 13.3%) of our outstanding
common stock. This substantial ownership of our common stock enables Mellon HBV
and ValueAct to significantly influence the election of our directors, with
respect to which there is cumulative voting, and possibly other corporate
matters and transactions that require stockholder approval.</p>
<h1 style='margin-left:0in;text-indent:0in' align="center">
<a name="_Toc95736831"><font size="5">Forward-Looking
Statements</font></a></h1>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px; margin-top:0; margin-bottom:0" align="justify">This reoffer prospectus contains forward-looking
statements.&nbsp; Statements contained in this reoffer prospectus about Seitel's
future outlook, prospects and plans, including those that express belief,
expectation, estimates or intentions, as well as those that are not statements
of historical fact, are forward looking. Terminology such as &quot;may,&quot; &quot;will,&quot; &quot;should,&quot;
&quot;could,&quot; &quot;might,&quot; &quot;although there can be no assurance,&quot; &quot;expect,&quot; &quot;plan,&quot; &quot;anticipate,&quot;
&quot;believe,&quot; &quot;estimate,&quot; &quot;predict,&quot; &quot;potential&quot; or &quot;continue,&quot; the negative of
such terms or other comparable and analogous or synonymous terminology are
intended to identify forward-looking statements. Forward-looking statements
represent our reasonable present belief and are based on our current
expectations and assumptions with respect to future events. While we believe
our expectations and assumptions are reasonable, they involve risks and
uncertainties beyond our control that could cause the actual results or outcome
to differ materially from the expected results or outcome. Such factors
include, without limitation:</p>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px; margin-top:0; margin-bottom:0" align="justify">&nbsp;</p>
<div align="left">
<table border="0" cellpadding="0" style="border-collapse: collapse" width="750" id="table5">
  <tr>
    <td width="49" align="left">
    <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
    <td width="49" align="left" valign="top"><LI>
    <p style="margin-top: 0; margin-bottom: 0"></LI></td>
    <td align="justify">
    <p style="margin-top: 0; margin-bottom: 0">our ability to comply with the
    terms of the SEC Injunction;</p>
    <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
  </tr>
  <tr>
    <td width="49" align="left">&nbsp;</td>
    <td width="49" align="left" valign="top"><LI>
    <p style="margin-top: 0; margin-bottom: 0"></LI></td>
    <td align="justify">
    <p style="margin-top: 0; margin-bottom: 0">the impact on our results of
    operations of our significant amount of debt and interest expense;</p>
    <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
  </tr>
  <tr>
    <td width="49" align="left">&nbsp;</td>
    <td width="49" align="left" valign="top"><LI>
    <p style="margin-top: 0; margin-bottom: 0"></LI></td>
    <td align="justify">
    <p style="margin-top: 0; margin-bottom: 0">our significant amount of debt
    service;</p>
    <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
  </tr>
  <tr>
    <td width="49" align="left">&nbsp;</td>
    <td width="49" align="left" valign="top"><LI>
    <p style="margin-top: 0; margin-bottom: 0"></LI></td>
    <td align="justify">
    <p style="margin-top: 0; margin-bottom: 0">our ability to obtain and
    maintain normal terms with our vendors and service providers;</p>
    <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
  </tr>
  <tr>
    <td width="49" align="left">&nbsp;</td>
    <td width="49" align="left" valign="top"><LI>
    <p style="margin-top: 0; margin-bottom: 0"></LI></td>
    <td align="justify">
    <p style="margin-top: 0; margin-bottom: 0">our ability to maintain contracts
    that are critical to our operations;</p>
    <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
  </tr>
  <tr>
    <td width="49" align="left">&nbsp;</td>
    <td width="49" align="left" valign="top"><LI>
    <p style="margin-top: 0; margin-bottom: 0"></LI></td>
    <td align="justify">
    <p style="margin-top: 0; margin-bottom: 0">any significant change in the oil
    and gas industry or the economy generally;</p>
    <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
  </tr>
  <tr>
    <td width="49" align="left">&nbsp;</td>
    <td width="49" align="left" valign="top"><LI>
    <p style="margin-top: 0; margin-bottom: 0"></LI></td>
    <td align="justify">
    <p style="margin-top: 0; margin-bottom: 0">changes in the exploration
    budgets of our seismic data and related services customers;</p>
    <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
  </tr>
  <tr>
    <td width="49" align="left">&nbsp;</td>
    <td width="49" align="left" valign="top"><LI>
    <p style="margin-top: 0; margin-bottom: 0"></LI></td>
    <td align="justify">
    <p style="margin-top: 0; margin-bottom: 0">actual customer demand for our
    seismic data and related services;</p>
    <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
  </tr>
  <tr>
    <td width="49" align="left">&nbsp;</td>
    <td width="49" align="left" valign="top"><LI>
    <p style="margin-top: 0; margin-bottom: 0"></LI></td>
    <td align="justify">
    <p style="margin-top: 0; margin-bottom: 0">the timing and extent of changes
    in commodity prices for natural gas, crude oil and condensate and natural
    gas liquids and conditions in the capital markets and equity markets during
    the periods covered by the forward-looking statements;</p>
    <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
  </tr>
  <tr>
    <td width="49" align="left">&nbsp;</td>
    <td width="49" align="left" valign="top"><LI>
    <p style="margin-top: 0; margin-bottom: 0"></LI></td>
    <td align="justify">
<p style="margin-top: 0; margin-bottom: 0" align="justify">our ability to obtain
alternate debt or equity financing on satisfactory terms if internally generated
funds are insufficient to fund our capital needs; and</p>
    <p style="margin-top: 0; margin-bottom: 0" align="justify">&nbsp;</p></td>
  </tr>
  <tr>
    <td width="49" align="left">&nbsp;</td>
    <td width="49" align="left" valign="top"><LI>
    <p style="margin-top: 0; margin-bottom: 0"></LI></td>
    <td align="justify">
    <p style="margin-top: 0; margin-bottom: 0">all of the factors in this reoffer prospectus appearing under the
caption &quot;Risk Factors.&quot;</td>
  </tr>
</table>
</div>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">We undertake no obligation to publicly update
or revise any forward-looking statements, whether as a result of new
information, future events or any other reason.&nbsp; Also note that we provide a
cautionary discussion of risks and uncertainties under &quot;Risk Factors,&quot;
beginning on page five of this prospectus.&nbsp; All forward-looking statements
attributable to Seitel or any person acting on its behalf are expressly
qualified in their entirety by the cautionary statements contained or referred
to in this reoffer prospectus.&nbsp; In light of these risks, uncertainties and
assumptions, the forward-looking events discussed in this reoffer prospectus
may not occur.</p>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">The information in this reoffer prospectus is
not a complete description of our business or the risks associated with an
investment in our securities. There can be no assurance that other factors will
not affect the accuracy of these forward-looking statements or that our actual
results will not differ materially from the results anticipated in such forward-looking
statements. While it is impossible to identify all such factors, factors which
could cause actual results to differ materially from those estimated by us
include, but are not limited to, those factors or conditions described under &quot;Risk
Factors.&quot;</p>
<h1 style='margin-left:0in;text-indent:0in' align="center">
<a name="_Toc95736832"><font size="5">Unaudited
Pro Forma Consolidated Financial Data</font></a></h1>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">The Unaudited Pro Forma Consolidated Financial
Data contained in our prospectus dated January 10, 2005, on pages 42 through
45, which was filed pursuant to Rule 424(b) on January 12, 2005, is
incorporated herein by reference.</p>
<h1 style='margin-left:0in;text-indent:0in' align="center">
<a name="_Toc95736833"><font size="5">Where You Can
Find More Information</font></a></h1>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">This reoffer prospectus constitutes a part of a
registration statement on Form S-8 that we filed with the SEC under the
Securities Act of 1933, as amended (the &quot;Securities Act&quot;). This reoffer
prospectus does not contain all the information set forth in the registration
statement.&nbsp; You should refer to the registration statement and its related
exhibits and schedules for further information about our company and the shares
offered in this reoffer prospectus.&nbsp; Statements contained in this reoffer
prospectus concerning the provisions of any document are not necessarily
complete and, in each instance, reference is made to the copy of that document
filed as an exhibit to the registration statement or otherwise filed with the
SEC, and each such statement is qualified by this reference.&nbsp; The registration
statement and its exhibits and schedules are on file at the offices of the SEC
and may be inspected without charge.</p>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">We file annual, quarterly, and special reports,
proxy statements and other information with the SEC.&nbsp; You can read and copy any
materials we file with the SEC at the SEC's public reference room at 450 Fifth Street, N.W., Washington, D.C. 20549.&nbsp; You can obtain information about the
operation of the SEC's public reference room by calling the SEC at 1-800-SEC-0330.&nbsp;
The SEC also maintains a Web site that contains information we file
electronically with the SEC, which you can access over the Internet at
http://www.sec.gov.</p>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">We are incorporating by reference in this
reoffer prospectus information we file with the SEC, which means that we are
disclosing important information to you by referring you to those documents.&nbsp;
The information we incorporate by reference is an important part of this
reoffer prospectus, and later information that we file with the SEC
automatically will update and supersede this information.&nbsp; We incorporate by
reference the documents listed below:</p>
<p style="text-indent: -90px; margin-left: 150px" align="justify">1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our annual report on Form 10-K for the year ended
December&nbsp;31, 2003, filed on March&nbsp;30, 2004.</font></p>
<h3 style="text-indent: -90px; margin-left: 150px" align="justify"></h3>
<p style="text-indent: -90px; margin-left: 150px" align="justify">2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our quarterly reports on Form 10-Q: (i) for the quarter ended
March&nbsp;30, 2004, filed on May&nbsp;10, 2004, as amended by Forms 10-Q/A
filed on June&nbsp;2, 2004 and June 9, 2004, (ii) for the quarter ended
June&nbsp;30, 2004, filed August&nbsp;13, 2004; (iii) our quarterly report on
Form 10-Q for the quarter ended September&nbsp;30, 2004, filed on November 22,
2004.</font></p>
<h3 style="text-indent: -90px; margin-left: 150px" align="justify"></h3>
<p style="text-indent: -90px; margin-left: 150px" align="justify">3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our current reports on Form 8-K filed on January&nbsp;12, 2004,
January&nbsp;29, 2004, February&nbsp;6, 2004, February&nbsp;18, 2004,
February&nbsp;20, 2004, March&nbsp;19, 2004, April&nbsp;1, 2004, June&nbsp;25,
2004, July&nbsp;2, 2004, July&nbsp;30, 2004, August&nbsp;3, 2004,
August&nbsp;9, 2004, August&nbsp;12, 2004, August&nbsp;31, 2004,
October&nbsp;6, 2004, October&nbsp;13, 2004, October&nbsp;18, 2004, December&nbsp;20,
2004, January 4, 2005 and January 7, 2005.</p>
<h3 style="text-indent: -90px; margin-left: 150px" align="justify"></h3>
<p style="text-indent: -90px; margin-left: 150px" align="justify">4)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The description of our common stock contained in our registration
statement on Form 8-A filed on June&nbsp;28,&nbsp;2004.</font></p>
<h3 align="justify"></h3>
<p class=MsoBodyTextFirstIndent style='page-break-after:avoid; text-indent:50px' align="justify">You may request
a copy of these filings, which we will provide to you at no cost, by writing or
telephoning us at the following address and telephone number:</p>
<p class=CenterInitialCapsNoBold style='page-break-after:avoid; margin-top:0; margin-bottom:0' align="center">Seitel, Inc.</p>
<p class=CenterInitialCapsNoBold style='page-break-after:avoid; margin-top:0; margin-bottom:0' align="center">10811 S. Westview Circle</p>
<p class=CenterInitialCapsNoBold style='page-break-after:avoid; margin-top:0; margin-bottom:0' align="center">Building C, Suite 100</p>
<p class=CenterInitialCapsNoBold style='page-break-after:avoid; margin-top:0; margin-bottom:0' align="center">Houston, Texas 77043</p>
<p class=CenterInitialCapsNoBold style="margin-top: 0; margin-bottom: 0" align="center">(713) 881-8900</p>
<p class=CenterInitialCapsNoBold style='margin-bottom:0; margin-top:0' align="center">Attention:&nbsp;
Secretary</p>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">All documents filed by us pursuant to Sections
13(a), 13(c), 14 or 15(d) of the Exchange Act (excluding any information in
those documents that are deemed by the rules of the SEC to be furnished but not
filed) after the date of this filing and before the termination of this
offering shall be deemed to be incorporated in this reoffer prospectus and to
be a part hereof from the date of the filing of such document.&nbsp; Any statement
contained in a document incorporated by reference herein shall be deemed to be
modified or superseded for all purposes to the extent that a statement
contained in this reoffer prospectus, or in any other subsequently filed
document which is also incorporated or deemed to be incorporated by reference,
modifies or supersedes such statement.&nbsp; Any statement so modified or superseded
shall not be deemed, except as so modified or superseded, to constitute a part
of this reoffer prospectus.</p>
<h1 style='margin-left:0in;text-indent:0in' align="center">
<a name="_Toc95736834"><font size="5">Use of
Proceeds</font></a></h1>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">We will not receive any proceeds from the sale
of shares of our common stock by the selling stockholders under this reoffer
prospectus.</p>
<h1 style='margin-left:0in;text-indent:0in' align="center">
<a name="_Toc95736835"><font size="5">Dilution</font></a></h1>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">Our net tangible book value at September 30,
2004 was a deficit of approximately $11.2 million or $0.07 per share. The
offering of shares by the selling stockholders will not result in any dilution
to our net tangible book value. The market price of shares being offered may
not bear any reasonable relationship to our net tangible book value.<b><br
clear=all style='page-break-before:always'></b></p>
<h1 style='margin-left:0in;text-indent:0in' align="center">
<a name="_Toc95736836"><font size="5">The Selling
Stockholders</font></a></h1>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">The selling stockholders may sell up to
1,167,492 shares of our common stock pursuant to this reoffer prospectus.&nbsp; This
includes 1,129,032 shares of restricted stock granted under the Plan at various
times prior to the dates of this reoffer prospectus, and 38,460 shares of our
common stock issued to non-employee directors pursuant to certain&nbsp; non-plan
restricted stock award agreements as of July 21, 2004.&nbsp; The following table
sets forth certain information known to us concerning each of the selling
stockholders.&nbsp; The shares are being registered to permit the selling
stockholders to offer the shares for resale from time to time.&nbsp; See &quot;Plan of
Distribution.&quot;</p>
<div align="center">
  <table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
 style='width:690px'>
    <tr style='height:49.05pt'>
      <td nowrap valign=bottom style='width:194px;height:49.05pt; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in'>
      <p class=TableText0><b>Name</b></p></td>
      <td valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; width:102px;border-bottom:
   1.0pt solid windowtext;height:49.05pt; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in'>
      <p class=TableText0 align=center style='text-align:center'><b>Shares of Common Stock Beneficially Owned Before
   Offering (1)</b></p></td>
      <td nowrap valign=bottom style='width:1%;height:49.05pt; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in'>
      <p class=TableText0 align=center style='text-align:center'><b>&nbsp;</b></p>
      </td>
      <td valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; width:94px;border-bottom:
   1.0pt solid windowtext;height:49.05pt; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in'>
      <p class=TableText0 align=center style='text-align:center'><b>Number of Shares of Common Stock Offered Hereby (1)</b></p>
      </td>
      <td nowrap valign=bottom style='width:1%;height:49.05pt; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in'>
      <p class=TableText0 align=center style='text-align:center'><b>&nbsp;</b></p>
      </td>
      <td valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; width:99px;border-bottom:
   1.0pt solid windowtext;height:49.05pt; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in'>
      <p class=TableText0 align=center style='text-align:center'><b>Shares of Common Stock Beneficially Owned Follow
   Offering (2)</b></p></td>
      <td nowrap valign=bottom style='width:1%;height:49.05pt; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in'>
      <p class=TableText0 align=center style='text-align:center'><b>&nbsp;</b></p>
      </td>
      <td valign=bottom style='border-left:medium none; border-right:medium none; border-top:medium none; width:88px;border-bottom:
   1.0pt solid windowtext;height:49.05pt; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in'>
      <p class=TableText0 align=center style='text-align:center'><b>Percentage of Shares of Common Stock Owned After
   Offering (2)</b></p></td>
    </tr>
    <tr style='height:12.75pt'>
      <td nowrap valign=bottom style='width:194px;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' bgcolor="#E6F2FF">
      <p class=TableText0><a name="_Hlk78789731">Robert D. Monson (3)</a></p>
      </td>
      <td nowrap valign=bottom style='width:102px;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right" bgcolor="#E6F2FF">
      <p class=TableFigures>1,000,000</p></td>
      <td nowrap valign=bottom style='width:1%;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right" bgcolor="#E6F2FF">
      </td>
      <td nowrap valign=bottom style='width:94px;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right" bgcolor="#E6F2FF">
      <p class=TableFigures>1,000,000</p></td>
      <td nowrap valign=bottom style='width:1%;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right" bgcolor="#E6F2FF">
      </td>
      <td nowrap valign=bottom style='width:99px;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right" bgcolor="#E6F2FF">
      <p class=TableFigures>-</p></td>
      <td nowrap valign=bottom style='width:1%;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right" bgcolor="#E6F2FF">
      </td>
      <td nowrap valign=bottom style='width:88px;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right" bgcolor="#E6F2FF">
      <p class=TableFigures style="margin-right: 40px">*</p></td>
    </tr>
    <tr style='height:12.75pt'>
      <td nowrap valign=bottom style='width:194px;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' bgcolor="#E6F2FF">
      <p class=TableText0>Fred S. Zeidman (4), (5) </p></td>
      <td nowrap valign=bottom style='width:102px;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right" bgcolor="#E6F2FF">
      <p class=TableFigures>25,329</p></td>
      <td nowrap valign=bottom style='width:1%;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right" bgcolor="#E6F2FF">
      </td>
      <td nowrap valign=bottom style='width:94px;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right" bgcolor="#E6F2FF">
      <p class=TableFigures>16,129</p></td>
      <td nowrap valign=bottom style='width:1%;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right" bgcolor="#E6F2FF">
      </td>
      <td nowrap valign=bottom style='width:99px;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right" bgcolor="#E6F2FF">
      <p class=TableFigures>9,200</p></td>
      <td nowrap valign=bottom style='width:1%;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right" bgcolor="#E6F2FF">
      </td>
      <td nowrap valign=bottom style='width:88px;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right" bgcolor="#E6F2FF">
      <p class=TableFigures style="margin-right: 40px">*</p></td>
    </tr>
    <tr style='height:12.75pt'>
      <td nowrap valign=bottom style='width:194px;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in'>
      <p class=TableText0>C. Robert Black (5), (6)</p></td>
      <td nowrap valign=bottom style='width:102px;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right">
      <p class=TableFigures>23,821</p></td>
      <td nowrap valign=bottom style='width:1%;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right">
      </td>
      <td nowrap valign=bottom style='width:94px;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right">
      <p class=TableFigures>23,821</p></td>
      <td nowrap valign=bottom style='width:1%;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right">
      </td>
      <td nowrap valign=bottom style='width:99px;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right">
      <p class=TableFigures>-</p></td>
      <td nowrap valign=bottom style='width:1%;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right">
      </td>
      <td nowrap valign=bottom style='width:88px;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right">
      <p class=TableFigures style="margin-right: 40px">*</p></td>
    </tr>
    <tr style='height:12.75pt'>
      <td nowrap valign=bottom style='width:194px;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in'>
      <p class=TableText0>Kevin S. Flannery (5)</p></td>
      <td nowrap valign=bottom style='width:102px;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right">
      <p class=TableFigures>26,129</p></td>
      <td nowrap valign=bottom style='width:1%;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right">
      </td>
      <td nowrap valign=bottom style='width:94px;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right">
      <p class=TableFigures>16,129</p></td>
      <td nowrap valign=bottom style='width:1%;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right">
      </td>
      <td nowrap valign=bottom style='width:99px;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right">
      <p class=TableFigures>10,000</p></td>
      <td nowrap valign=bottom style='width:1%;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right">
      </td>
      <td nowrap valign=bottom style='width:88px;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right">
      <p class=TableFigures style="margin-right: 40px">*</p></td>
    </tr>
    <tr style='height:12.75pt'>
      <td nowrap valign=bottom style='width:194px;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' bgcolor="#E6F2FF">
      <p class=TableText0>Jay H. Golding (5) </p></td>
      <td nowrap valign=bottom style='width:102px;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right" bgcolor="#E6F2FF">
      <p class=TableFigures>36,129</p></td>
      <td nowrap valign=bottom style='width:1%;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right" bgcolor="#E6F2FF">
      </td>
      <td nowrap valign=bottom style='width:94px;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right" bgcolor="#E6F2FF">
      <p class=TableFigures>16,129</p></td>
      <td nowrap valign=bottom style='width:1%;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right" bgcolor="#E6F2FF">
      </td>
      <td nowrap valign=bottom style='width:99px;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right" bgcolor="#E6F2FF">
      <p class=TableFigures>20,000</p></td>
      <td nowrap valign=bottom style='width:1%;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right" bgcolor="#E6F2FF">
      </td>
      <td nowrap valign=bottom style='width:88px;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right" bgcolor="#E6F2FF">
      <p class=TableFigures style="margin-right: 40px">*</p></td>
    </tr>
    <tr style='height:12.75pt'>
      <td nowrap valign=bottom style='width:194px;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' bgcolor="#E6F2FF">
      <p class=TableText0>Ned S. Holmes (5), (6)</p></td>
      <td nowrap valign=bottom style='width:102px;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right" bgcolor="#E6F2FF">
      <p class=TableFigures>23,821</p></td>
      <td nowrap valign=bottom style='width:1%;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right" bgcolor="#E6F2FF">
      </td>
      <td nowrap valign=bottom style='width:94px;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right" bgcolor="#E6F2FF">
      <p class=TableFigures>23,821</p></td>
      <td nowrap valign=bottom style='width:1%;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right" bgcolor="#E6F2FF">
      </td>
      <td nowrap valign=bottom style='width:99px;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right" bgcolor="#E6F2FF">
      <p class=TableFigures>-</p></td>
      <td nowrap valign=bottom style='width:1%;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right" bgcolor="#E6F2FF">
      </td>
      <td nowrap valign=bottom style='width:88px;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right" bgcolor="#E6F2FF">
      <p class=TableFigures style="margin-right: 40px">*</p></td>
    </tr>
    <tr style='height:12.75pt'>
      <td nowrap valign=bottom style='width:194px;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in'>
      <p class=TableText0>Robert Kelley (5), (6) </p></td>
      <td nowrap valign=bottom style='width:102px;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right">
      <p class=TableFigures>23,821</p></td>
      <td nowrap valign=bottom style='width:1%;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right">
      </td>
      <td nowrap valign=bottom style='width:94px;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right">
      <p class=TableFigures>23,821</p></td>
      <td nowrap valign=bottom style='width:1%;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right">
      </td>
      <td nowrap valign=bottom style='width:99px;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right">
      <p class=TableFigures>-</p></td>
      <td nowrap valign=bottom style='width:1%;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right">
      </td>
      <td nowrap valign=bottom style='width:88px;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right">
      <p class=TableFigures style="margin-right: 40px">*</p></td>
    </tr>
    <tr style='height:12.75pt'>
      <td nowrap valign=bottom style='width:194px;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in'>
      <p class=TableText0>Charles H. Mouquin (5), (6)</p></td>
      <td nowrap valign=bottom style='width:102px;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right">
      <p class=TableFigures>232,713</p></td>
      <td nowrap valign=bottom style='width:1%;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right">
      </td>
      <td nowrap valign=bottom style='width:94px;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right">
      <p class=TableFigures>23,821</p></td>
      <td nowrap valign=bottom style='width:1%;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right">
      </td>
      <td nowrap valign=bottom style='width:99px;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right">
      <p class=TableFigures>208,892</p></td>
      <td nowrap valign=bottom style='width:1%;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right">
      </td>
      <td nowrap valign=bottom style='width:88px;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right">
      <p class=TableFigures style="margin-right: 40px">*</p></td>
    </tr>
    <tr style='height:12.75pt'>
      <td nowrap valign=bottom style='width:194px;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' bgcolor="#E6F2FF">
      <p class=TableText0>J. D. Williams (5), (6) </p></td>
      <td nowrap valign=bottom style='width:102px;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right" bgcolor="#E6F2FF">
      <p class=TableFigures>23,821</p></td>
      <td nowrap valign=bottom style='width:1%;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right" bgcolor="#E6F2FF">
      </td>
      <td nowrap valign=bottom style='width:94px;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right" bgcolor="#E6F2FF">
      <p class=TableFigures>23,821</p></td>
      <td nowrap valign=bottom style='width:1%;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right" bgcolor="#E6F2FF">
      </td>
      <td nowrap valign=bottom style='width:99px;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right" bgcolor="#E6F2FF">
      <p class=TableFigures>-</p></td>
      <td nowrap valign=bottom style='width:1%;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right" bgcolor="#E6F2FF">
      </td>
      <td nowrap valign=bottom style='width:88px;height:30px; padding-left:2.9pt; padding-right:2.9pt; padding-top:0in; padding-bottom:0in' align="right" bgcolor="#E6F2FF">
      <p class=TableFigures style="margin-right: 40px">*</p></td>
    </tr>
  </table>
</div>
<p class=TableFootnotes style='margin-top:12.0pt'>*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less than 1%, based on
151,543,175 shares outstanding on January 21, 2005.</p>
<p class=HangingIndent05-PH style="text-indent: -50px; margin-left: 50px" align="justify">(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ownership is determined as of January
21, 2005 and in accordance with Rule 13d-3 under the Exchange Act. The actual
number of shares beneficially owned and offered for sale is subject to
adjustment and could be materially less or more than the estimated amount
indicated depending upon factors, which we cannot predict at this time.</p>
<p class=HangingIndent05-PH style="text-indent: -50px; margin-left: 50px" align="justify">(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Assumes all the shares offered hereby
are sold to persons who are not affiliates of the selling stockholders and the
selling stockholders sell no other shares they beneficially own.</p>
<p class=HangingIndent05-PH style="text-indent: -50px; margin-left: 50px" align="justify">(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr. Monson is our president and chief
executive officer, and was our chief financial officer from May 10, 2004 until
December 15, 2004.&nbsp; The shares offered by Mr. Monson were issued to him on
December&nbsp;15, 2004, pursuant to a restricted stock agreement under the
Plan. The 1,000,000 shares of restricted common stock vest one-third on each of
December 15, 2005, December 15, 2006 and December 15, 2007.</p>
<p class=HangingIndent05-PH style="text-indent: -50px; margin-left: 50px" align="justify">(4)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr. Zeidman is our chairman of the
board of directors.&nbsp; He served as our interim president and chief executive
officer from November 6, 2002 until December 6, 2002, and from October 5, 2004
until December 15, 2004.&nbsp; Mr. Zeidman holds ten-year options to purchase
100,000 shares of common stock at an exercise price of $1.30 per share, which
are not included in this table.&nbsp; These options become exercisable on July 2,
2005, and were granted in connection with our Reorganization Plan.</p>
<p class=HangingIndent05-PH style="text-indent: -50px; margin-left: 50px" align="justify">(5)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Messrs. Zeidman, Black, Flannery, Golding, Holmes, Kelley, Mouquin and Williams are members of our board of
directors.&nbsp; Each of their shares offered include 16,129 shares of restricted
common stock granted on January 3, 2005, pursuant to a restricted stock
agreement under the Plan. These restricted shares vest on January 3, 2008.</p>
<p class=HangingIndent05-PH style="text-indent: -50px; margin-left: 50px" align="justify">(6)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The shares offered include 7,692
shares of restricted common stock granted on July 21, 2004, pursuant to a
restricted stock agreement.&nbsp; These restricted shares vest on July 21, 2007.</p>
<h1 style='margin-left:0in;text-indent:0in' align="center">
<a name="_Toc95736837"><font size="5"></font></a><font size="5">
<a
name="_Toc79895761"></a><a name="CSRVS3A1_HTM_PAGE_37"></a>Plan of Distribution</font></h1>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">We will not receive any of the proceeds from
the sale of the common stock by the selling stockholders pursuant to this
reoffer prospectus. The aggregate proceeds to the selling stockholders from the
sale of the common stock will be the purchase price of the common stock less
any discounts and commissions. A selling stockholder reserves the right to
accept and, together with its agents, to reject, any proposed purchased of
common stock to be made directly or through agents.&nbsp; This reoffer prospectus
covers the resale of shares of our common stock by the selling stockholders.&nbsp;
As used in this reoffer prospectus, &quot;selling stockholders&quot; includes holders of
shares of our common stock received from a selling stockholder after the date
of this reoffer prospectus and who received such shares by gift or by other
transfer by such selling stockholder to an immediate family member of such
stockholder, by will or through operation of the laws of descent and
distribution, and their respective administrators, guardians, receivers,
executors or other persons acting in a similar capacity.</p>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px; margin-top:0; margin-bottom:0" align="justify">The common stock may be sold from time to time
to purchasers:</p>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px; margin-top:0; margin-bottom:0" align="justify">&nbsp;</p>
<table border="0" cellpadding="0" style="border-collapse: collapse" width="750" id="table6">
  <tr>
    <td width="49" align="left">
    <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
    <td width="49" align="left" valign="top"><LI>
    <p style="margin-top: 0; margin-bottom: 0"></LI></td>
    <td align="justify">
    <p style="margin-top: 0; margin-bottom: 0">directly by the selling
    stockholders and their successors, which includes their transferees, pledgees or donees or their successors; or</p>
    <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
  </tr>
  <tr>
    <td width="49" align="left">&nbsp;</td>
    <td width="49" align="left" valign="top"><LI>
    <p style="margin-top: 0; margin-bottom: 0"></LI></td>
    <td align="justify">
    <p style="margin-top: 0; margin-bottom: 0">through underwriters,
    broker-dealers or agents who may receive compensation in the form of
    discounts, concessions or commissions from the selling stockholders or the
    purchasers of the common stock. These discounts, concessions or commissions
    may be in excess of those customary in the types of transactions involved.</td>
  </tr>
</table>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">The selling stockholders and any underwriters,
broker-dealers or agents who participate in the distribution of the common
stock may be deemed to be &quot;underwriters&quot; within the meaning of the Securities
Act. As a result, any profits on the sale of the common stock by selling
stockholders and any discounts, commissions or concessions received by any such
broker-dealers or agents may be deemed to be underwriting discounts, and &quot;underwriters&quot;
within the meaning of the Securities Act will be subject to prospectus delivery
requirements of the Securities Act. If the selling stockholders are deemed to
be underwriters, the selling stockholders may be subject to certain statutory
liabilities, including, without limitation, liabilities under Sections 11, 12
and 17 of the Securities Act and Rule 10b-5 under the Exchange Act. If the
common stock is sold through underwriters, broker-dealers or agents, the
selling stockholders will be responsible for underwriting discounts or
commissions or agent's commissions.</p>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px; margin-top:0; margin-bottom:0" align="justify">The common stock may be sold in one or more
transactions at:</p>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px; margin-top:0; margin-bottom:0" align="justify">&nbsp;</p>
<table border="0" cellpadding="0" style="border-collapse: collapse" width="750" id="table7">
  <tr>
    <td width="49" align="left">
    <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
    <td width="49" align="left" valign="top"><LI>
    <p style="margin-top: 0; margin-bottom: 0"></LI></td>
    <td align="justify">
    <p style="margin-top: 0; margin-bottom: 0">fixed prices;</p>
    <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
  </tr>
  <tr>
    <td width="49" align="left">&nbsp;</td>
    <td width="49" align="left" valign="top"><LI>
    <p style="margin-top: 0; margin-bottom: 0"></LI></td>
    <td align="justify">
    <p style="margin-top: 0; margin-bottom: 0">prevailing market prices at the
    time of sale;</p>
    <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
  </tr>
  <tr>
    <td width="49" align="left">&nbsp;</td>
    <td width="49" align="left" valign="top"><LI>
    <p style="margin-top: 0; margin-bottom: 0"></LI></td>
    <td align="justify">
    <p style="margin-top: 0; margin-bottom: 0">prices related to such prevailing
    market prices;</p>
    <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
  </tr>
  <tr>
    <td width="49" align="left">&nbsp;</td>
    <td width="49" align="left" valign="top"><LI>
    <p style="margin-top: 0; margin-bottom: 0"></LI></td>
    <td align="justify">
    <p style="margin-top: 0; margin-bottom: 0">varying prices determined at the
    time of sale; or</p>
    <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
  </tr>
  <tr>
    <td width="49" align="left">&nbsp;</td>
    <td width="49" align="left" valign="top"><LI>
    <p style="margin-top: 0; margin-bottom: 0"></LI></td>
    <td align="justify">
    <p style="margin-top: 0; margin-bottom: 0">negotiated prices.</td>
  </tr>
</table>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px; margin-top:0; margin-bottom:0" align="justify">&nbsp;</p>
<p style="margin-left: 50px; margin-top: 0; margin-bottom: 0" align="justify">
</p>
<p class=BodyText5Font10 style="text-indent: 50px; margin-top:0; margin-bottom:0" align="justify">These sales may be effected in transactions:</p>
<p class=BodyText5Font10 style="text-indent: 50px; margin-top:0; margin-bottom:0" align="justify">&nbsp;</p>
<table border="0" cellpadding="0" style="border-collapse: collapse" width="750" id="table8">
  <tr>
    <td width="49" align="left">
    <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
    <td width="49" align="left" valign="top"><LI>
    <p style="margin-top: 0; margin-bottom: 0"></LI></td>
    <td align="justify">
    <p style="margin-top: 0; margin-bottom: 0">on any national securities
    exchange or quotation service on which the common stock may be listed or
    quoted at the time of the sale;</p>
    <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
  </tr>
  <tr>
    <td width="49" align="left">&nbsp;</td>
    <td width="49" align="left" valign="top"><LI>
    <p style="margin-top: 0; margin-bottom: 0"></LI></td>
    <td align="justify">
    <p style="margin-top: 0; margin-bottom: 0">in the over-the-counter market;</p>
    <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
  </tr>
  <tr>
    <td width="49" align="left">&nbsp;</td>
    <td width="49" align="left" valign="top"><LI>
    <p style="margin-top: 0; margin-bottom: 0"></LI></td>
    <td align="justify">
    <p style="margin-top: 0; margin-bottom: 0">otherwise than on such exchanges
    or services or in the over-the-counter market;</p>
    <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
  </tr>
  <tr>
    <td width="49" align="left">&nbsp;</td>
    <td width="49" align="left" valign="top"><LI>
    <p style="margin-top: 0; margin-bottom: 0"></LI></td>
    <td align="justify">
<p style="margin-top: 0; margin-bottom: 0" align="justify">through the writing
and exercise of options, whether such options are listed on an options exchange
or otherwise; or</p>
    <p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
  </tr>
  <tr>
    <td width="49" align="left">&nbsp;</td>
    <td width="49" align="left" valign="top"><LI>
    <p style="margin-top: 0; margin-bottom: 0"></LI></td>
    <td align="justify">
    <p style="margin-top: 0; margin-bottom: 0">through the settlement of short
    sales.</td>
  </tr>
</table>
<p style="margin-left: 50px; margin-top: 0; margin-bottom: 0" align="justify">
</p>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">These transactions may include block
transactions or crosses. Crosses are transactions in which the same broker acts
as an agent on both sides of the trade.</p>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">In connection with the sales of the common
stock or otherwise, the selling stockholders may enter into hedging transactions
with broker-dealers or other financial institutions. These broker-dealers or
other financial institutions may in turn engage in short sales of the common
stock in the course of hedging their positions. The selling stockholders may
also sell the common stock short and deliver common stock to close out short
positions, or loan or pledge common stock to broker-dealers that in turn may
sell the common stock.</p>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">Broker-dealers engaged by the selling
stockholders may arrange for other brokers-dealers to participate in sales.&nbsp;
Broker-dealers may receive commissions or discounts from the selling
stockholders (or, if any broker-dealer acts as agent for the purchaser of
shares, from the purchaser) in amounts to be negotiated. The selling
stockholders do not expect these commissions and discounts to exceed what is
customary in the types of transactions involved.</p>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">The selling stockholders may from time to time
pledge or grant a security interest in some or all of the shares of common
stock owned by them and, if they default in the performance of their secured
obligations, the pledgees or secured&nbsp; parties may offer and sell the shares of
common stock from time to time under this reoffer prospectus, or under an
amendment to this reoffer prospectus under Rule&nbsp;424(b)(3) or other
applicable provision of the Securities Act amending the list of selling
stockholders to include the pledgee, transferee or other successors in interest
as selling stockholders under this reoffer prospectus.</p>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">To our knowledge, there are currently no plans,
arrangements or understandings between any selling stockholders and any
underwriter, broker-dealer or agent regarding the sale of the common stock.</p>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">At the time a particular offering is made, if
required, a reoffer prospectus supplement will be distributed, which will set
forth the names of the selling stockholders, the aggregate amount and type of
securities being offered, the price at which the securities are being sold and
other material terms of the offering, including the name or names of any underwriters,
broker-dealers or agents, any discounts, commissions and other terms
constituting compensation from the selling stockholders and any discounts,
commissions or concessions allowed or reallowed to paid broker-dealers.</p>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">We cannot be certain that any selling
stockholder will sell any or all of the common stock pursuant to this reoffer
prospectus. Further, we cannot assure you that any such selling stockholder
will not transfer, devise or gift the common stock by other means not described
in this reoffer prospectus. In addition, any common stock covered by this
reoffer prospectus that qualifies for sale pursuant to Rule 144 of the
Securities Act may be sold under Rule 144 rather than under this reoffer
prospectus. The common stock may be sold in some states only through registered
or licensed brokers or dealers. In addition, in some states the common stock
may not be sold unless it has been registered or qualified for sale or an
exemption from registration or qualification is available and complied with.</p>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">The selling stockholders and any other person
participating in the sale of the common stock will be subject to the Exchange
Act. The Exchange Act rules include, without limitation, Regulation M, which
may limit the timing of purchases and sales of any of the common stock by the
selling stockholders and any other such person. In addition, Regulation M may
restrict the ability of any person engaged in the distribution of the common
stock and the ability of any person or entity to engage in market-making activities
with respect to the common stock.</p>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">We have agreed to pay substantially all
expenses incidental to the registration, offering and sale of the common stock
to the public, other than commissions, fees and discounts of underwriters,
brokers, dealers and agents.</p>
<h1 style='page-break-after:avoid' align="center"><a
name="_Toc95736838"><font size="5">Legal Matters</font></a></h1>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">Certain legal matters with respect to the
common stock offered hereby will be passed upon for us by Porter &amp; Hedges,
L.L.P., Houston, Texas.&nbsp; Any underwriters will be advised about other issues
relating thereto by their own legal counsel.</p>
<h1 align="center"><a name="_Toc95736839"><font size="5">Experts</font></a></h1>
<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">The consolidated financial statements of
Seitel, Inc. at December 31, 2003 and 2002, and for each of the three years in
the period ended December 31, 2003, appearing in Seitel's Form 10-K for the year
ended December 31, 2003, have been
audited by Ernst &amp; Young, LLP, independent registered public accounting
firm, as set forth in their reports (which contain an explanatory paragraph
describing conditions that raise substantial doubt about the company's ability
to continue as a going concern as described in Notes A and B to the consolidated
financial statements) thereon incorporated by reference.&nbsp; Such consolidated
financial statements have been incorporated herein by reference in reliance upon such
reports given on the authority of such firm as experts in accounting and
auditing.</p>

<hr color="#000080"><br clear=all
style='page-break-before:always'>


<div class=Section5>

<p class=BoldCenterPH align="center"><b><a name="toc75204_30"><font size="5">
</font></a><font size="5">PART II<br>
Information Required In Registration Statement</font></b></p>

<p class=ItemTitle><b>Item 3. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Incorporation of Documents by Reference.</b></p>

<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">We are incorporating by reference into this
registration statement information we file with the SEC, which means that we
are disclosing important information to you by referring you to those
documents.&nbsp; The information we incorporate by reference is an important part of
this registration statement, and later information that we file with the SEC
automatically will update and supersede this information.&nbsp; We incorporate by
reference the documents listed below:</p>

<p style="text-indent: -90px; margin-left: 150px" align="justify">1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our annual report on Form 10-K for the year ended December 31,
2003, filed on March 30, 2004.</font></p>
<h3 style="text-indent: -90px; margin-left: 150px" align="justify"></h3>

<p style="text-indent: -90px; margin-left: 150px" align="justify">2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our quarterly reports on Form 10-Q: (i) for the quarter ended
March 30, 2004, filed on May 10, 2004, as&nbsp;&nbsp;amended by Forms 10-Q/A
filed on June 2, 2004 and June 9, 2004, (ii) for the quarter ended June 30,
2004, filed August 13, 2004; (iii) our quarterly report on Form 10-Q for the
quarter ended September 30, 2004, filed on November 22, 2004.</font></p>
<h3 style="text-indent: -90px; margin-left: 150px" align="justify"></h3>

<p style="text-indent: -90px; margin-left: 150px" align="justify">3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our current reports on Form 8-K filed on January 12, 2004,
January 29, 2004, February 6, 2004, February 18, 2004, February 20, 2004, March
19, 2004, April 1, 2004, June 25, 2004, July 2, 2004, July 30, 2004, August 3,
2004, August 9, 2004, August 12, 2004, August 31, 2004, October&nbsp;6, 2004,
October 13, 2004, October 18, 2004, December 20, 2004, January 4, 2005 and
January 7, 2005.</p>
<h3 style="text-indent: -90px; margin-left: 150px" align="justify"></h3>

<p style="text-indent: -90px; margin-left: 150px" align="justify">4)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The description of our common stock contained in our registration
statement on Form 8-A filed on June 28, 2004.</font></p>
<h3 align="justify">
</h3>

<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">You may request a copy of these filings, which
we will provide to you at no cost, by writing or telephoning us at the
following address and telephone number:</p>

<p class=CenterPH style='margin-bottom:0in;margin-bottom:0; margin-top:0' align="center">Seitel, Inc.</p>

<p class=CenterPH style='margin-bottom:0in;margin-bottom:0; margin-top:0' align="center">10811 S. Westview Circle</p>

<p class=CenterPH style='margin-bottom:0in;margin-bottom:0; margin-top:0' align="center">Building C, Suite 100</p>

<p class=CenterPH style='margin-bottom:0in;margin-bottom:0; margin-top:0' align="center">Houston, Texas 77043</p>

<p class=CenterPH style='margin-bottom:0in;margin-bottom:0; margin-top:0' align="center">(713) 881-8900</p>

<p class=CenterPH style="margin-top: 0; margin-bottom: 0" align="center">
Attention:&nbsp; Secretary</p>

<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">All documents filed by us pursuant to Sections
13(a), 13(c), 14 or 15(d) of the Exchange Act (excluding any information in
those documents that are deemed by the rules of the SEC to be furnished but not
filed) after the date of this filing and before the termination of this
offering shall be deemed to be incorporated into this registration statement
and to be a part hereof from the date of the filing of such document.&nbsp; Any
statement contained in a document incorporated by reference herein shall be
deemed to be modified or superseded for all purposes to the extent that a
statement contained in this registration statement, or in any other
subsequently filed document which is also incorporated or deemed to be
incorporated by reference, modifies or supersedes such statement.&nbsp; Any
statement so modified or superseded shall not be deemed, except as so modified
or superseded, to constitute a part of this registration statement.</p>

<p class=ItemTitle align="justify"><b>Item 4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Description of Securities.</b></p>

<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">Not applicable.</p>

<p class=ItemTitle align="justify"><b>Item 5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interests of Named Experts and Counsel.</b></p>

<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">Not applicable.</p>

<p class=ItemTitle align="justify"><b>Item 6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Indemnification of Directors and Officers.</b></p>

<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">The following is a summary of the statutes,
charter and bylaw provisions or other arrangements under which the directors
and officers of Seitel, Inc. are insured or indemnified against liability in
their capacities as such.</p>

<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">Seitel is incorporated under the laws of the
State of Delaware. Section 145 of the General Corporation Law of the State of
Delaware (the &quot;Delaware Statute&quot;) provides that a Delaware corporation may
indemnify any persons who are, or are threatened to be made, parties to any
threatened, pending or completed action, suit or proceeding, whether civil,
criminal, administrative or investigative (a &quot;proceeding&quot;), other than an
action by or in the right of such corporation, by reason of the fact that such
person is or was an officer, director, employee or agent of such corporation,
or is or was serving at the request of such corporation as a director, officer,
employee or agent of another corporation or enterprise (an &quot;indemnified
capacity&quot;). The indemnity may include expenses, including attorneys' fees,
judgments, fines and amounts paid in settlement actually and reasonably
incurred by such person in connection with such action, suit or proceeding,
provided such person acted in good faith and in a manner he reasonably believed
to be in or not opposed to the corporation's best interests and, with respect
to any criminal action or proceeding, had no reasonable cause to believe that
his conduct was illegal. Similar provisions apply to actions brought by or in
the right of the corporation, except that no indemnification shall be made
without judicial approval if the officer or director is adjudged to be liable
to the corporation. Where an officer or director is successful on the merits or
otherwise in the defense of any action referred to above, the corporation must
indemnify him against the expenses which such officer or director has actually
and reasonably incurred. The Delaware Statute further authorizes a corporation
to purchase and maintain insurance on behalf of any indemnified person against
any liability asserted against him and incurred by him in any indemnified
capacity, or arising out of his status as such, regardless of whether the
corporation would otherwise have the power to indemnify him under the Delaware
Statute.</p>

<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">The amended and restated certificate of
incorporation of Seitel and the by-laws of Seitel provide that Seitel shall
indemnify its directors and officers to the full extent authorized by law.
Moreover, the amended and restated certificate of incorporation of Seitel
provides that no director shall be liable to Seitel or its stockholders for
monetary damages for breach of his or her fiduciary duty as a director,
provided that nothing contained therein shall eliminate or limit the liability
of a director (i) for any breach of the director's duty of loyalty to Seitel or
its stockholders, (ii) for acts or omissions not in good faith or which involve
intentional misconduct or a knowing violation of the law, (iii) under Section
174 of the General Corporation Law of the State of Delaware or (iv) for any
transaction for which the director derived an improper personal benefit. If the
General Corporation Law of the State of Delaware is amended to authorize
corporate action further eliminating or limiting the personal liability of
directors, then the liability of a director of Seitel shall be eliminated or
limited to the fullest extent permitted by the General Corporation Law of the
State of Delaware, as so amended.</p>

<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">Seitel has purchased insurance on behalf of its
directors and officers against certain liabilities that may be asserted
against, or incurred by, such persons in their capacities as directors or
officers of the registrant, or that may arise out of their status as directors
or officers of the registrant, including liabilities under the federal and
state securities laws.</p>

<p class=ItemTitle align="justify"><b>Item 7. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exemption from Registration Claimed.</b></p>

<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">The 1,167,492 shares of restricted stock
registered for resale by this registration statement were issued to certain
directors and an executive officer of the Company as inducement or incentive
awards.&nbsp; These grants were exempt from registration pursuant to Section 4(2) of
the Securities Act.</p>

<p class=ItemTitle style='page-break-after:avoid' align="justify"><b>Item 8. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibits<i>.</i></b></p>

<p class=MsoBodyTextFirstIndent style='page-break-after:avoid; text-indent:50px' align="justify">The following exhibits are filed herewith pursuant to the requirements of Item 601 of
Regulation S-K:</p>

<div align=center>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width="100%"
 style='width:750px'>

  <tr style='page-break-inside:avoid'>
   <td width="10%" valign=top style='width:10.38%;padding:.7pt .7pt .7pt .7pt'>
   <p class=MsoNormal align=center style='text-align:center;page-break-after:
   avoid'><b>Exhibit<br>
   <u>&nbsp;&nbsp;&nbsp;No.</u></b></p>
   </td>
   <td width="89%" valign=bottom style='width:89.62%;padding:.7pt .7pt .7pt .7pt'>
   <p class=MsoNormal align=center style='text-align:center'><b><u>Description of Exhibit</u></b></p>
   </td>
  </tr>

 <tr style='page-break-inside:avoid'>
  <td width="10%" valign=top style='width:10.38%;padding:.7pt .7pt .7pt .7pt' align="right">
  <p class=TableFigures style='margin-right:25px'>4.1&nbsp;</p>
  </td>
  <td width="89%" valign=top style='width:89.62%;padding:.7pt .7pt .7pt .7pt' align="justify">
  <p class=TableText0>Seitel, Inc. 2004 Stock Option Plan (incorporated by
  reference from Exhibit 10.1 to the Company's registration statement on Form S-4,
  as filed with the SEC on December 21, 2004, File No. 333-121476).</p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid'>
  <td width="10%" valign=top style='width:10.38%;padding:.7pt .7pt .7pt .7pt' align="right">
  <p class=TableFigures style='margin-right:25px'>4.2*</p>
  </td>
  <td width="89%" valign=top style='width:89.62%;padding:.7pt .7pt .7pt .7pt' align="justify">
  <p class=TableText0>Form of Restricted Stock Award Agreement for employee
  grants made under the Seitel, Inc. 2004 Stock Option Plan.</p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid'>
  <td width="10%" valign=top style='width:10.38%;padding:.7pt .7pt .7pt .7pt' align="right">
  <p class=TableFigures style='margin-right:25px'>4.3*</p>
  </td>
  <td width="89%" valign=top style='width:89.62%;padding:.7pt .7pt .7pt .7pt' align="justify">
  <p class=TableText0>Form of Non-Employee Director Restricted Stock Agreement
  for grants made under the Seitel, Inc. 2004 Stock Option Plan.</p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid'>
  <td width="10%" valign=top style='width:10.38%;padding:.7pt .7pt .7pt .7pt' align="right">
  <p class=TableFigures style='margin-right:25px'>4.4*</p>
  </td>
  <td width="89%" valign=top style='width:89.62%;padding:.7pt .7pt .7pt .7pt' align="justify">
  <p class=TableText0>Restricted Stock Agreement for Robert D. Monson dated
  December 15, 2004.</p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid'>
  <td width="10%" valign=top style='width:10.38%;padding:.7pt .7pt .7pt .7pt' align="right">
  <p class=TableFigures style='margin-right:25px'>4.5*</p>
  </td>
  <td width="89%" valign=top style='width:89.62%;padding:.7pt .7pt .7pt .7pt' align="justify">
  <p class=TableText0>Stock Option Agreement for Fred S. Zeidman dated July 2,
  2004.</p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid'>
  <td width="10%" valign=top style='width:10.38%;padding:.7pt .7pt .7pt .7pt' align="right">
  <p class=TableFigures style='margin-right:25px'>4.6*</p>
  </td>
  <td width="89%" valign=top style='width:89.62%;padding:.7pt .7pt .7pt .7pt' align="justify">
  <p class=TableText0>Form of Non-Employee Director Restricted Stock Agreement
  for grants dated July 21, 2004.</p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid'>
  <td width="10%" valign=top style='width:10.38%;padding:.7pt .7pt .7pt .7pt' align="right">
  <p class=TableFigures style='margin-right:25px'>5.1*</p>
  </td>
  <td width="89%" valign=top style='width:89.62%;padding:.7pt .7pt .7pt .7pt' align="justify">
  <p class=TableText0>Opinion of Porter &amp; Hedges, L.L.P. as to the legality
  of the securities being registered.</p>
  </td>
 </tr>
  <tr>
  <td width="10%" valign=top style='width:10.38%;padding:.7pt .7pt .7pt .7pt' align="right">
  <p class=TableFigures style='margin-right:25px'>23.1*</p>
  </td>
  <td width="89%" valign=top style='width:89.62%;padding:.7pt .7pt .7pt .7pt' align="justify">
  <p class=TableText0>Consent of Ernst &amp; Young, LLP.</p>
  </td>
  </tr>
 <tr style='page-break-inside:avoid'>
  <td width="10%" valign=top style='width:10.38%;padding:.7pt .7pt .7pt .7pt' align="right">
  <p class=TableFigures style='margin-right:25px'>23.2*</p>
  </td>
  <td width="89%" valign=top style='width:89.62%;padding:.7pt .7pt .7pt .7pt' align="justify">
  <p class=TableText0>Consent of Porter &amp; Hedges, L.L.P. (included in
  Exhibit 5.1).</p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid'>
  <td width="10%" valign=top style='width:10.38%;padding:.7pt .7pt .7pt .7pt' align="right">
  <p class=TableFigures style='margin-right:25px'>24.1*</p>
  </td>
  <td width="89%" valign=top style='width:89.62%;padding:.7pt .7pt .7pt .7pt' align="justify">
  <p class=TableText0>Power of Attorney (contained in signature page).</p>
  </td>
 </tr>
</table>

</div>

<p class=TableFootnotes style='margin-top:12.0pt'>*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Filed herewith.</p>

<p class=ItemTitle><b>Item 9. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Undertakings<i>.</i></b></p>

<p style="text-indent: 50px" align="justify">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The undersigned registrants hereby undertake:</p>
<h4 align="justify">
</h4>

<p style="text-indent: 89px; margin-left: 50px" align="justify">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To file, during any period in which offers or sales are being
made, a post-effective amendment to this registration statement:</p>
<h5 align="justify">
</h5>

<p style="text-indent: 89px; margin-left: 140px" align="justify">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To include any prospectus required by section 10(a)(3) of the
Securities Act of 1933;</p>
<h6 style="text-indent: 89px; margin-left: 140px" align="justify"></h6>

<p style="text-indent: 89px; margin-left: 140px" align="justify">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To reflect in the prospectus any facts or events arising after
the effective date of the registration statement (or the most recent post-effective
amendment thereof) which, individually or in the aggregate, represent a
fundamental change in the information set forth in the registration statement.
Notwithstanding the foregoing, any increase or decrease in volume of securities
offered (if the total dollar value of securities offered would not exceed that
which was registered) and any deviation from the low or high end of the
estimated maximum offering range may be reflected in the form of prospectus
filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the
changes in volume and price represent no more than 20% change in the maximum
aggregate offering price set forth in the &quot;Calculation of Registration Fee&quot;
table in the effective registration statement.</p>
<h6 style="text-indent: 89px; margin-left: 140px" align="justify"></h6>

<p style="text-indent: 89px; margin-left: 140px" align="justify">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To include any material information with respect to the plan of
distribution not previously disclosed in the registration statement or any
material change to such information in the registration statement;</p>
<h6 align="justify">
</h6>

<p class=LeftIndent05PH style="margin-left: 50px" align="justify">provided however, that paragraphs (a)(1)(i) and
(a)(1)(ii)&nbsp; do not apply if the information required to be included in a post-effective
amendment by those paragraphs is contained in periodic reports filed with or
furnished to the Commission by the registrant pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934 that are incorporated by reference in
the registration statement.</p>

<p style="text-indent: 89px; margin-left: 50px" align="justify">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
That, for the purpose of determining any liability under the
Securities Act of 1933, each such post-effective amendment shall be deemed to
be a new registration statement relating to the securities offered therein, and
the offering of such securities at that time shall be deemed to be the initial <i>bona
fide</i> offering thereof.</p>
<h5 style="text-indent: 89px; margin-left: 50px" align="justify"></h5>

<p style="text-indent: 89px; margin-left: 50px" align="justify">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To remove from registration by means of a post-effective
amendment any of the securities being registered which remain unsold at the
termination of the offering.</p>
<h5 align="justify">
</h5>

<p style="text-indent: 50px" align="justify">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The undersigned registrant hereby undertakes that, for purposes
of determining any liability under the Securities Act of 1933, each filing of
the registrant's annual report pursuant to Section 13(a) or 15(d) of the
Securities Exchange Act of 1934 (and, where applicable, each filing of any
employee benefit plan's annual report pursuant to Section 15(d) of the
Securities Exchange Act of 1934) that is incorporated by reference in the
registration statement shall be deemed to be a new registration statement
relating to the securities offered therein, and the offering of such securities
at that time shall be deemed to be the initial <i>bona fide</i> offering
thereof.</p>
<h4 style="text-indent: 50px" align="justify"></h4>

<p style="text-indent: 50px" align="justify">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Insofar as indemnification for liabilities arising under the
Securities Act of 1933 may be permitted to directors, officers and controlling
persons of the registrants pursuant to the foregoing provisions, or otherwise,
the registrants have been advised that in the opinion of the Securities and
Exchange Commission such indemnification is against public policy as expressed
in the Act and is, therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment by the
registrants of expenses incurred or paid by a director, officer or controlling
person of the registrants in the successful defense of any action, suit or
proceeding) is asserted by such director, officer or controlling person in connection
with the securities being registered, the registrants will, unless in the
opinion of its counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question whether such
indemnification by it is against public policy as expressed in the Act and will
be governed by the final adjudication of such issue.</p>
</h4>

<b><hr color="#000080"><br clear=all style='page-break-before:always'>
</b>

<p class=BoldCtrCapsPH align="center"><b>SIGNATURES</b></p>

<p class=BodyText5Font10 style="text-indent: 50px" align="justify">Pursuant to the
requirements of the Securities Act of 1933, the registrant certifies that it
has reasonable grounds to believe that it meets all of the requirements for
filing on Form S-8 and has duly caused this registration statement to be signed
on its behalf by the undersigned, thereunto duly authorized, in the city of
Houston, state of Texas, on the 14th day of February, 2005.</p>

<p class=MsoSignature style="margin-left: 400px; margin-top: 0; margin-bottom: 0"><b>SEITEL, INC.</b></p>





<p class=MsoSignature style="margin-left: 400px; margin-top: 0; margin-bottom: 0">By:<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; /s/ Robert D. Monson&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </u></p>

<p class=MsoSignature style='text-indent:.5in; margin-left:400px; margin-top:0; margin-bottom:0'>Robert D. Monson</p>

<p class=MsoSignature style='text-indent:.5in; margin-left:400px; margin-top:0; margin-bottom:0'>President and Chief Executive
Officer</p>





<p class=CenterCapsBold>&nbsp;</p>
<p class=CenterCapsBold align="center"><b>POWER OF ATTORNEY AND SIGNATURES</b></p>

<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">We the
undersigned officers and directors of Seitel, Inc., hereby, severally
constitute and appoint Robert D. Monson and Marcia H. Kendrick each of them
singly, our true and lawful attorneys with full power to them and each of them
singly, to sign for us and in our names in the capacities indicated below, the
registration statement on Form S-8 filed herewith and any and all pre-effective
and post-effective amendments to said registration statement and any subsequent
registration statement for the same offering which may be filed under Rule
462(b) and generally to do all such things in our names and on our behalf in
our capacities as officers and directors to enable Seitel, Inc. to comply with
the provisions of the Securities Act of 1933, and all requirements of the
Securities and Exchange Commission, hereby ratifying and confirming our
signatures as they may be signed by our said attorneys, or any of them, to said
registration statement and any and all amendments thereto or to any subsequent
registration statement for the same offering which may be filed under Rule
462(b).</p>

<p class=MsoBodyTextFirstIndent style="text-indent: 50px" align="justify">Pursuant to
the requirements of the Securities Act of 1933, this registration statement has
been signed by the following persons in the capacities and on the dates
indicated.</p>

<div align="center">

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=631
 style='width:750px;margin-left:5.4pt'>

  <tr style='page-break-inside:avoid;height:.2in'>
   <td width=224 valign=top style='width:168.0pt;padding:.7pt 5.75pt .7pt 5.75pt;
   height:.2in'>
   <p class=SchedNotes align=center style='text-align:center'><u>Signature</u></p>
   </td>
   <td width=16 valign=top style='width:12.0pt;padding:.7pt 5.75pt .7pt 5.75pt;
   height:.2in'>
   <p class=SchedNotes align=center style='text-align:center'>&nbsp;</p>
   </td>
   <td width=272 valign=top style='width:204.0pt;padding:.7pt 5.75pt .7pt 5.75pt;
   height:.2in'>
   <p class=SchedNotes align=center style='text-align:center'><u>Title</u></p>
   </td>
   <td width=119 valign=top style='width:89.4pt;padding:.7pt 5.75pt .7pt 5.75pt;
   height:.2in'>
   <p class=SchedNotes align=center style='text-align:center'><u>Date</u></p>
   </td>
  </tr>

 <tr style='page-break-inside:avoid;height:.2in'>
  <td width=224 valign=top style='width:168.0pt;padding:.7pt 5.75pt .7pt 5.75pt;
  height:.2in'>

  </td>
  <td width=16 valign=top style='width:12.0pt;padding:.7pt 5.75pt .7pt 5.75pt;
  height:.2in'>

  </td>
  <td width=272 valign=top style='width:204.0pt;padding:.7pt 5.75pt .7pt 5.75pt;
  height:.2in'>

  </td>
  <td width=119 valign=top style='width:89.4pt;padding:.7pt 5.75pt .7pt 5.75pt;
  height:.2in'>

  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:.2in'>
  <td width=224 valign=top style='width:168.0pt;padding:.7pt 5.75pt .7pt 5.75pt;
  height:.2in'>

  /s/ Robert D. Monson</td>
  <td width=16 valign=top style='width:12.0pt;padding:.7pt 5.75pt .7pt 5.75pt;
  height:.2in'>

  </td>
  <td width=272 rowspan=2 valign=top style='width:204.0pt;padding:.7pt 5.75pt .7pt 5.75pt;
  height:.2in'>
  <p class=TableText0 align=center style='margin:0in;margin-bottom:.0001pt;
  text-align:center'>President and Chief Executive Officer</p>
  <p class=TableText0 align=center style='margin:0in;margin-bottom:.0001pt;
  text-align:center'>(Principal Executive Officer)</p>
  </td>
  <td width=119 valign=top style='width:89.4pt;padding:.7pt 5.75pt .7pt 5.75pt;
  height:.2in'>
  <p class=TableText0 align=center style='margin:0in;margin-bottom:.0001pt;
  text-align:center'>February 14, 2005</p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:.2in'>
  <td width=224 valign=top style='width:168.0pt;border:none;border-top:solid windowtext 1.0pt;
  padding:.7pt 5.75pt .7pt 5.75pt;height:.2in'>
  <p class=TableText0 align=center style='margin:0in;margin-bottom:.0001pt;
  text-align:center'>Robert D. Monson</p>
  </td>
  <td width=16 valign=top style='width:12.0pt;padding:.7pt 5.75pt .7pt 5.75pt;
  height:.2in'>

  </td>
  <td width=119 valign=top style='width:89.4pt;padding:.7pt 5.75pt .7pt 5.75pt;
  height:.2in'>

  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:.2in'>
  <td width=224 valign=top style='width:168.0pt;padding:.7pt 5.75pt .7pt 5.75pt;
  height:.2in'>

  </td>
  <td width=16 valign=top style='width:12.0pt;padding:.7pt 5.75pt .7pt 5.75pt;
  height:.2in'>

  </td>
  <td width=272 valign=top style='width:204.0pt;padding:.7pt 5.75pt .7pt 5.75pt;
  height:.2in'>

  </td>
  <td width=119 valign=top style='width:89.4pt;padding:.7pt 5.75pt .7pt 5.75pt;
  height:.2in'>

  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:.2in'>
  <td width=224 valign=top style='width:168.0pt;padding:.7pt 5.75pt .7pt 5.75pt;
  height:.2in'>

  /s/ Fred S. Zeidman</td>
  <td width=16 valign=top style='width:12.0pt;padding:.7pt 5.75pt .7pt 5.75pt;
  height:.2in'>

  </td>
  <td width=272 rowspan=2 valign=top style='width:204.0pt;padding:.7pt 5.75pt .7pt 5.75pt;
  height:.2in'>
  <p class=TableText0 align=center style='margin:0in;margin-bottom:.0001pt;
  text-align:center'>Chairman of the Board of Directors</p>
  </td>
  <td width=119 valign=top style='width:89.4pt;padding:.7pt 5.75pt .7pt 5.75pt;
  height:.2in'>
  <p class=TableText0 align=center style='margin:0in;margin-bottom:.0001pt;
  text-align:center'>February 14, 2005</p>
  </td>
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  <td width=224 valign=top style='width:168.0pt;border:none;border-top:solid windowtext 1.0pt;
  padding:.7pt 5.75pt .7pt 5.75pt;height:.2in'>
  <p class=TableText0 align=center style='margin:0in;margin-bottom:.0001pt;
  text-align:center'>Fred S. Zeidman</p>
  </td>
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  height:.2in'>

  </td>
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  &nbsp;<p>/s/ Marcia H. Kendrick</td>
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  height:.2in'>

  </td>
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  height:.2in'>
  <p class=TableText0 align=center style='margin:0in;margin-bottom:.0001pt;
  text-align:center'>Senior Vice President, Chief Accounting Officer, Interim
  Chief Financial Officer and Interim Secretary</p>
  </td>
  <td width=119 valign=top style='width:89.4pt;padding:.7pt 5.75pt .7pt 5.75pt;
  height:.2in'>
  <p class=TableText0 align=center style='margin:0in;margin-bottom:.0001pt;
  text-align:center'>February 14, 2005</p>
  </td>
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  <td width=224 valign=top style='width:168.0pt;border:none;border-top:solid windowtext 1.0pt;
  padding:.7pt 5.75pt .7pt 5.75pt;height:.2in'>
  <p class=TableText0 align=center style='margin:0in;margin-bottom:.0001pt;
  text-align:center'>Marcia H. Kendrick</p>
  </td>
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  height:.2in'>

  </td>
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  height:.2in'>
  <p class=TableText0 align=center style='margin:0in;margin-bottom:.0001pt;
  text-align:center'>(Principal Financial and Accounting Officer)</p>
  </td>
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  height:.2in'>

  </td>
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  height:.2in'>

  </td>
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  </td>
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  </td>
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  /s/ C. Robert Black</td>
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  height:.2in'>

  </td>
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  <p class=TableText0 align=center style='margin:0in;margin-bottom:.0001pt;
  text-align:center'>Director</p>
  </td>
  <td width=119 valign=top style='width:89.4pt;padding:.7pt 5.75pt .7pt 5.75pt;
  height:.2in'>
  <p class=TableText0 align=center style='margin:0in;margin-bottom:.0001pt;
  text-align:center'>February 14, 2005</p>
  </td>
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  <td width=224 valign=top style='width:168.0pt;border:none;border-top:solid windowtext 1.0pt;
  padding:.7pt 5.75pt .7pt 5.75pt;height:.2in'>
  <p class=TableText0 align=center style='margin:0in;margin-bottom:.0001pt;
  text-align:center'>C. Robert Black</p>
  </td>
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  height:.2in'>

  </td>
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  </td>
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  </td>
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  </td>
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  </td>
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  &nbsp;</td>
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  height:.2in'>

  </td>
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  height:.2in'>
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  text-align:center'>Director</p>
  </td>
  <td width=119 valign=top style='width:89.4pt;padding:.7pt 5.75pt .7pt 5.75pt;
  height:.2in'>
  <p class=TableText0 align=center style='margin:0in;margin-bottom:.0001pt;
  text-align:center'>February 14, 2005</p>
  </td>
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  <td width=224 valign=top style='width:168.0pt;border:none;border-top:solid windowtext 1.0pt;
  padding:.7pt 5.75pt .7pt 5.75pt;height:.2in'>
  <p class=TableText0 align=center style='margin:0in;margin-bottom:.0001pt;
  text-align:center'>Kevin S. Flannery</p>
  </td>
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  height:.2in'>

  </td>
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  </td>
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  </td>
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  </td>
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  &nbsp;</td>
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  height:.2in'>

  </td>
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  height:.2in'>
  <p class=TableText0 align=center style='margin:0in;margin-bottom:.0001pt;
  text-align:center'>Director</p>
  </td>
  <td width=119 valign=top style='width:89.4pt;padding:.7pt 5.75pt .7pt 5.75pt;
  height:.2in'>
  <p class=TableText0 align=center style='margin:0in;margin-bottom:.0001pt;
  text-align:center'>February 14, 2005</p>
  </td>
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  padding:.7pt 5.75pt .7pt 5.75pt;height:.2in'>
  <p class=TableText0 align=center style='margin:0in;margin-bottom:.0001pt;
  text-align:center'>Jay H. Golding</p>
  </td>
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  height:.2in'>

  </td>
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  height:.2in'>

  </td>
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  </td>
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  height:.2in'>

  </td>
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  </td>
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  /s/ Ned. S. Holmes</td>
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  height:.2in'>

  </td>
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  height:.2in'>
  <p class=TableText0 align=center style='margin:0in;margin-bottom:.0001pt;
  text-align:center'>Director</p>
  </td>
  <td width=119 valign=top style='width:89.4pt;padding:.7pt 5.75pt .7pt 5.75pt;
  height:.2in'>
  <p class=TableText0 align=center style='margin:0in;margin-bottom:.0001pt;
  text-align:center'>February 14, 2005</p>
  </td>
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  padding:.7pt 5.75pt .7pt 5.75pt;height:.2in'>
  <p class=TableText0 align=center style='margin:0in;margin-bottom:.0001pt;
  text-align:center'>Ned S. Holmes</p>
  </td>
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  height:.2in'>

  </td>
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  /s/ Robert Kelley</td>
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  height:.2in'>

  </td>
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  text-align:center'>Director</p>
  </td>
  <td width=119 valign=top style='width:89.4pt;padding:.7pt 5.75pt .7pt 5.75pt;
  height:.2in'>
  <p class=TableText0 align=center style='margin:0in;margin-bottom:.0001pt;
  text-align:center'>February 14, 2005</p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:.2in'>
  <td width=224 valign=top style='width:168.0pt;border:none;border-top:solid windowtext 1.0pt;
  padding:.7pt 5.75pt .7pt 5.75pt;height:.2in'>
  <p class=TableText0 align=center style='margin:0in;margin-bottom:.0001pt;
  text-align:center'>Robert Kelley</p>
  </td>
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  height:.2in'>

  </td>
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  </td>
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  </td>
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  height:.2in'>

  </td>
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  height:.2in'>

  </td>
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  height:.2in'>

  </td>
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  height:.2in'>

  </td>
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  /s/ Charles H. Mouquin</td>
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  height:.2in'>

  </td>
  <td width=272 valign=top style='width:204.0pt;padding:.7pt 5.75pt .7pt 5.75pt;
  height:.2in'>
  <p class=TableText0 align=center style='margin:0in;margin-bottom:.0001pt;
  text-align:center'>Director</p>
  </td>
  <td width=119 valign=top style='width:89.4pt;padding:.7pt 5.75pt .7pt 5.75pt;
  height:.2in'>
  <p class=TableText0 align=center style='margin:0in;margin-bottom:.0001pt;
  text-align:center'>February 14, 2005</p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:.2in'>
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  height:.2in'>
  <p class=TableText0 align=center style='margin:0in;margin-bottom:.0001pt;
  text-align:center'>Charles H. Mouquin</p>
  </td>
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  height:.2in'>

  </td>
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  height:.2in'>

  </td>
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  </td>
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  height:.2in'>

  </td>
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  </td>
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  </td>
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  </td>
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  /s/ J.D. Williams</td>
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  height:.2in'>

  </td>
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  <p class=TableText0 align=center style='margin:0in;margin-bottom:.0001pt;
  text-align:center'>Director</p>
  </td>
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  height:.2in'>
  <p class=TableText0 align=center style='margin:0in;margin-bottom:.0001pt;
  text-align:center'>February 14, 2005</p>
  </td>
 </tr>
 <tr style='page-break-inside:avoid;height:.2in'>
  <td width=224 valign=top style='width:168.0pt;border:none;border-top:solid windowtext 1.0pt;
  padding:.7pt 5.75pt .7pt 5.75pt;height:.2in'>
  <p class=TableText0 align=center style='margin:0in;margin-bottom:.0001pt;
  text-align:center'>J.D. Williams</p>
  </td>
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  height:.2in'>

  </td>
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  </td>
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</table>

</div>

<b>
<p>&nbsp;</p>
<hr color="#000080"><br clear=all style='page-break-before:always'>
<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
<p style="margin-top: 0; margin-bottom: 0" align="center">EXHIBIT INDEX</b></p>
<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>

<div align=center>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width="100%"
 style='width:750px'>

  <tr>
   <td width="10%" valign=top style='width:10.34%;padding:0in 0in 0in 0in'>
   <p class=TableHeadings align="center"><b>Exhibit<br>
   <u>&nbsp;&nbsp;&nbsp;No.</u></b></p>
   </td>
   <td width="89%" valign=bottom style='width:89.22%;padding:0in 0in 0in 0in'>
   <p class=TableHeadings align="center"><b><u>Description of Exhibit</u></b></p>
   </td>
  </tr>

 <tr style='height:35.7pt'>
  <td width="10%" valign=top style='width:10.34%;padding:0in 0in 0in 0in;
  height:35.7pt' align="right">
  <p class=TableFigures style='margin-right:25px; margin-top:5px'>4.1&nbsp;</p>
  </td>
  <td width="89%" valign=top style='width:89.22%;padding:0in 0in 0in 0in;
  height:35.7pt' align="justify">
  <p class=TableText0 style="margin-top: 5px">Seitel, Inc. 2004 Stock Option Plan (incorporated by
  reference from Exhibit 10.1 to the Company's registration statement on Form S-4,
  as filed with the SEC on December 21, 2004, File No. 333-121476).</p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign=top style='width:10.34%;padding:0in 0in 0in 0in' align="right">
  <p class=TableFigures style='margin-right:25px; margin-top:5px'>4.2*</p>
  </td>
  <td width="89%" valign=bottom style='width:89.22%;padding:0in 0in 0in 0in' align="justify">
  <p class=TableText0 style="margin-top: 5px">Form of Restricted Stock Award Agreement for employee
  grants made under the Seitel, Inc. 2004 Stock Option Plan.</p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign=top style='width:10.34%;padding:0in 0in 0in 0in' align="right">
  <p class=TableFigures style='margin-right:25px; margin-top:5px'>4.3*</p>
  </td>
  <td width="89%" valign=bottom style='width:89.22%;padding:0in 0in 0in 0in' align="justify">
  <p class=TableText0 style="margin-top: 5px">Form of Non-Employee Director Restricted Stock Agreement
  for grants made under the Seitel, Inc. 2004 Stock Option Plan.</p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign=top style='width:10.34%;padding:0in 0in 0in 0in' align="right">
  <p class=TableFigures style='margin-right:25px; margin-top:5px'>4.4*</p>
  </td>
  <td width="89%" valign=bottom style='width:89.22%;padding:0in 0in 0in 0in' align="justify">
  <p class=TableText0 style="margin-top: 5px">Restricted Stock Agreement for Robert D. Monson dated
  December 15, 2004.</p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign=top style='width:10.34%;padding:0in 0in 0in 0in' align="right">
  <p class=TableFigures style='margin-right:25px; margin-top:5px'>4.5*</p>
  </td>
  <td width="89%" valign=bottom style='width:89.22%;padding:0in 0in 0in 0in' align="justify">
  <p class=TableText0 style="margin-top: 5px">Stock Option Agreement for Fred S. Zeidman dated July 2,
  2004.</p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign=top style='width:10.34%;padding:0in 0in 0in 0in' align="right">
  <p class=TableFigures style='margin-right:25px; margin-top:5px'>4.6*</p>
  </td>
  <td width="89%" valign=bottom style='width:89.22%;padding:0in 0in 0in 0in' align="justify">
  <p class=TableText0 style="margin-top: 5px">Form of Non-Employee Director Restricted Stock Agreement
  for grants dated July 21, 2004.</p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign=top style='width:10.34%;padding:0in 0in 0in 0in' align="right">
  <p class=TableFigures style='margin-right:25px; margin-top:5px'>5.1*</p>
  </td>
  <td width="89%" valign=bottom style='width:89.22%;padding:0in 0in 0in 0in' align="justify">
  <p class=TableText0 style="margin-top: 5px">Opinion of Porter &amp; Hedges, L.L.P. as to the legality
  of the securities being registered.</p>
  </td>
 </tr>
  <tr>
  <td width="10%" valign=top style='width:10.34%;padding:0in 0in 0in 0in' align="right">
  <p class=TableFigures style='margin-right:25px; margin-top:5px'>23.1*</p>
  </td>
  <td width="89%" valign=bottom style='width:89.22%;padding:0in 0in 0in 0in' align="justify">
  <p class=TableText0 style="margin-top: 5px">Consent of Ernst &amp; Young, LLP.</p>
  </td>
  </tr>
 <tr>
  <td width="10%" valign=top style='width:10.34%;padding:0in 0in 0in 0in' align="right">
  <p class=TableFigures style='margin-right:25px; margin-top:5px'>23.2*</p>
  </td>
  <td width="89%" valign=bottom style='width:89.22%;padding:0in 0in 0in 0in' align="justify">
  <p class=TableText0 style="margin-top: 5px">Consent of Porter &amp; Hedges, L.L.P. (included in
  Exhibit 5.1).</p>
  </td>
 </tr>
 <tr>
  <td width="10%" valign=top style='width:10.34%;padding:0in 0in 0in 0in' align="right">
  <p class=TableFigures style='margin-right:25px; margin-top:5px'>24.1*</p>
  </td>
  <td width="89%" valign=bottom style='width:89.22%;padding:0in 0in 0in 0in' align="justify">
  <p class=TableText0 style="margin-top: 5px">Power of Attorney (contained in signature page).</p>
  </td>
 </tr>
</table>

</div>





</div>

<p class="TableText0">&nbsp;</p>
<p class="TableText0">&nbsp;</p>
<hr color="#000080">

</body>

</html>
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{"company-data": {"conformed-name": "SEITEL INC", "cik": "0000750813", "assigned-sic": "1382", "irs-number": "760025431", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "S-8", "act": "33", "file-number": "333-122782", "film-number": "05604316"}, "business-address": {"street1": "10811 S. WESTVIEW CIRCLE", "street2": "BUILDING C, SUITE 100", "city": "HOUSTON", "state": "TX", "zip": "77043", "phone": "7138818900"}, "mail-address": {"street1": "10811 S. WESTVIEW CIRCLE", "street2": "BUILDING C, SUITE 100", "city": "HOUSTON", "state": "TX", "zip": "77043"}, "former-company": {"former-conformed-name": "SEISMIC ENTERPRISES INC", "date-changed": "19870814"}}
_
As filed with the
Securities and Exchange Commission on February 14, 2005
Registration No. 333-_____
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________
Form S-8
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
_______________
Seitel,
Inc.
(Exact name of registrant as
specified in its charter)
Delaware
1382
76-0025431
(State or other jurisdiction
(Primary Standard Industrial
(I.R.S. Employer
of incorporation or
  organization)
Classification Code Number)
Identification No.)
10811 S. Westview Circle  Building C, Suite 100
Houston, Texas 77043
(713) 881-8900
(Address, including zip
code, and telephone number, including area code, of registrant's principal
executive offices)
Seitel, Inc. 2004
Stock Option Plan
Non-Employee Director Non-Plan Restricted Stock Award Agreements
Non-Qualified Stock Option Agreement for Fred Zeidman
(Full title of the
plans)
Robert D. Monson
President and Chief Executive Officer
Seitel, Inc.
10811 S. Westview Circle
Building C, Suite 100
Houston, Texas 77043
(713) 881-8900
(Name, address,
including zip code, and telephone number, including area code, of agent for
service)
_______________
Copies to:
Kathy L. Tedore
Porter & Hedges, L.L.P.
700 Louisiana, 35th Floor
Houston, Texas 77002
Telephone: (713) 226-0659
Telecopy: (713) 226-0259
_______________
CALCULATION OF REGISTRATION FEE
Title of Each Class of Securities to Be Registered
Amount To Be Registered (1)
Proposed Maximum Offering Price Per Share (2)
Proposed Maximum Aggregate
  Offering Price (2)
Amount of Registration Fee
Common Stock, par value
  $0.01
8,667,492
$1.26
$10,921,039
$1,285.41
Common Stock, par value
  $0.01
100,000 (3)
$1.30
$130,000
$15.30
Total
8,767,492
N/A
$11,051,039
$1,300.71
(1) Pursuant to Rule 416 of the
Securities Act of 1933, as amended, the number of shares registered hereby
shall also be deemed to include such indeterminate number of additional shares
of common stock that may be issued or have been issued upon exercise of options
solely as a result of provisions to prevent dilution resulting from stock
splits, stock dividends or similar transactions.
(2) Estimated solely for the purpose
of calculating the registration fee in accordance with Rule 457(c) and (h)
under the Securities Act of 1933, as amended, based on the average of the high
and low sale prices for the common stock on the NASDAQ Over-the-Counter
Bulletin Board on February 11, 2005.
(3) These
shares represent shares of common stock issuable upon exercise of certain
outstanding options of the Registrant held a certain selling stockholder and,
pursuant to Rule 457(h) of the Securities Act of 1933, as amended, the proposed maximum offering price and the
proposed maximum aggregate offering price are estimated on the basis of the per
share exercise price of each of such options solely for purposes of calculating
the registration fee.
REOFFER PROSPECTUS
1,167,492 Shares
Seitel, Inc.
Common Stock
This reoffer prospectus relates to the offer
and sale from time to time of up to 1,167,492 shares of our common stock by the
selling stockholders named in this reoffer prospectus.  This includes 1,129,032
shares of restricted stock granted to non-employee directors and an executive
officer under the Seitel, Inc. 2004 Stock Option Plan (the "Plan") at various
times prior to the date of this reoffer prospectus, and 38,460 shares of our
common stock issued to non-employee directors pursuant to certain non-plan
restricted stock award agreements as of July 21, 2004.  The selling
stockholders may offer the shares from time to time through public or private
transactions at prevailing market prices, at prices related to prevailing
market prices or at other negotiated prices.  A selling stockholder may sell
none, some or all of the shares offered by this reoffer prospectus.  We cannot
predict when or in what amounts a selling stockholder may sell any of the
shares offered by this reoffer prospectus.  We will not receive any of the
proceeds from the sale of shares by the selling stockholders.
Our common stock is traded on the NASDAQ Over-the-Counter
Bulletin Board under the symbol "SELA.OB."  On February 10, 2005, the
closing price for our common stock was $1.31.
_______________
INVESTING
IN OUR COMMON STOCK INVOLVES RISKS.  CONSIDER CAREFULLY THE RISK FACTORS
BEGINNING ON PAGE  FIVE OF THIS REOFFER PROSPECTUS.
_______________
Neither
the Securities and Exchange
Commission nor any state securities commission has approved or disapproved of
these securities or determined if this reoffer prospectus is truthful or
complete.  Any representation to the contrary is a criminal offense.
_______________
The date of this reoffer prospectus is February
14, 2005.
You
should rely only on the information contained in this reoffer prospectus.  We
have not authorized any other person to provide you with different or additional information.  If anyone provides you
with different or additional information, you should not rely on it.  The
information in this reoffer prospectus is accurate as of the date on the front
cover.
TABLE OF CONTENTS
Page
The
      Company
1
Risk Factors
5
Forward-Looking Statements
10
Unaudited Pro Forma Consolidated
      Financial Data
11
Where You Can Find More Information
11
Use of Proceeds
12
Dilution
12
The Selling Stockholders
13
Plan of Distribution
14
Legal Matters
15
Experts
15
The Company
Seitel, Inc.
We are a leading provider of seismic data and
related geophysical services to the oil and gas industry in North America. Our
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. We have
ownership in an extensive library of proprietary onshore and offshore seismic
data that we have accumulated since 1982 and that we offer for license to a
wide range of oil and gas companies. Our customers utilize this data, in part,
to assist their identification of new geographical areas where subsurface
conditions are favorable for oil and gas exploration, to determine the size,
depth and geophysical structure of previously identified oil and gas fields,
and to optimize the development and production of oil and gas reserves.
We believe that our library of onshore seismic
data is one of the largest available for licensing in the United States and Canada. We also have ownership in a library of offshore data covering parts of the
U.S. Gulf of Mexico shelf and certain deep water areas in the western and
central U.S. Gulf of Mexico. We regularly add to the size of our seismic data
library by conducting new seismic data creation programs funded (or "underwritten")
substantially by our customers in exchange for a license granting exclusive
access to newly acquired data for a limited period of time. We also acquire
entire seismic libraries from oil and gas companies which have discontinued
their exploration and production focus in a particular geographical area and no
longer require ownership of the library or which have determined to sell their
library for financial purposes. These acquisitions are sometimes funded with
cash, but typically are structured as non-monetary exchanges of seismic data,
whereby we acquire ownership of existing data from customers in exchange for an
assignment of a non-exclusive license to use data from our library. We also
create new value-added products by applying advanced seismic data processing or
other quantitative analytical techniques to selected portions of our library.
Our seismic data library includes both onshore
and offshore three-dimensional ("3D") and two-dimensional ("2D") data and
offshore multi-component data. We have ownership in over 33,000 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. The
majority of our seismic data library covers onshore regions within North
America, with a geographic concentration on the onshore and transition zone of
the U.S. Gulf Coast extending from Texas to Florida, western Canada, Mississippi, eastern Texas, the Rocky Mountain region and northern Louisiana. Most of our
remaining seismic data library covers the offshore Gulf of Mexico and eastern Canada. We conduct our seismic data creation and licensing business through two wholly
owned subsidiaries, Seitel Data, Ltd. in the United States and Olympic Seismic
Ltd. in Canada.
To support our seismic data licensing business,
we maintain warehouse and electronic storage facilities at our Houston, Texas headquarters and our Calgary, Alberta location. Through our wholly owned
subsidiaries, Seitel Solutions Ltd. and Seitel Solutions Canada Ltd.
(collectively, "Solutions"), we offer the ability to access and interact with
the seismic data we own and market via a standard web browser and the Internet.
Refocused Operations
Because our historical success was built around
our seismic expertise and the quality of our library, we have refocused our
operations on our core competency of seismic data licensing. In 2002, we sold
substantially all of our assets which engaged in the exploration for and
development, production and sale of natural gas and oil, and we are marketing
what little amount remains of such assets for sale. By exiting the exploration
and production sector, we believe we have refocused our operations and are well-positioned
to achieve success in the future.
Industry Conditions
The overall demand for seismic data and related
geophysical services is dependent upon spending by oil and gas companies for
exploration, production, development and field management activities which, in
turn, is driven largely by present and expected future prices for crude oil and
natural gas. This is impacted by global events and economic, tax and
environmental considerations. Weak global economic conditions combined with an
oversupply of oil and gas led to a weak commodity price environment in the
latter half of 2001, which led to a decrease in capital spending by our
customers on seismic data and geophysical services in late 2001 and the first
half of 2002. Since then, however, the relative strengthening of economic
conditions, the global political environment and colder weather in the United States have resulted in dramatic price increases. As of December 17, 2004, oil and
gas prices were $46.28 per barrel and $7.30 per mcf, respectively, or 74% and
88% above their five-year average.
In addition to commodity prices, the U.S. and
Canadian onshore rig counts have also increased significantly since 2002,
reaching an average onshore rig count of 1,417 rigs for the nine months ended
September 30, 2004, well above the five-year average onshore rig count of 1,097
rigs.
The attractive commodity price environment has
been a catalyst for the increase in exploration and production spending in both
the U.S. and Canada. Since the end of 1999, U.S. exploration and production
annual spending increased from $22.0 billion to $50.5 billion, and Canadian
exploration and production annual spending increased from $9.2 billion to $14.2
billion, representing average annual increases of 23% and 11%, respectively.
The recent level of high commodity prices has resulted in many oil and gas
companies focusing their efforts on development drilling to produce existing
reserves rather than expending time and capital on exploration. As a result, we
believe some exploration spending in the industry has been postponed. We do not
believe this recent situation represents a long-term trend. Industry analysts
estimate oil and gas reserves are being depleted at a rate of 5% to 10% per
year for the major oil and gas operators. As a result, there is an increasing
need in the oil and gas industry to continue exploration activity and replace
such reserves.
Another factor which we believe is an
indication of the improved condition of the oil and gas industry is the equity
performance of publicly traded exploration and production companies. Over the
past five years, the S&P small-cap and mid-cap exploration and production
indices have increased an average of 19% and 21% per year, respectively. This
performance is a result of increased commodity prices as well as the companies'
abilities to gain attractive returns on their increased capital spending. To
maintain their success, these companies will have to continue to find new and
exploit existing oil and gas reserves, which will require significant amounts
of capital spending. Many of these companies are our clients and are
representative of the types of clients we target for our products and services.
Attractive commodity pricing, strong rig
counts, the need to replace oil and gas reserves, and the favorable performance
of oil and gas companies are expected to continue. Barring unforeseen world
events and economic conditions, we anticipate improved seismic industry market
conditions.
Our Current Strategies
We
have implemented a plan to refocus our activities, both functionally and
geographically, on areas in which we have historically experienced meaningful
success or in which we believe we can achieve significant growth in the future.
As a result, we made some changes to our operating philosophy, including:
discontinuation of our oil and gas exploration and production activities
    and disposal of substantially all of our oil and gas assets and properties;
discontinuation of cash investments for recording new data in the
    offshore U.S. seismic market, which is dominated by competitors who deploy
    their own marine vessels and field equipment to service their own data
    libraries;
discontinuation of additional capital investments in seismic data in
    geographical areas such as Alabama, Michigan and North Dakota because we do
    not believe these areas have sufficient revenue producing potential; and
reduction of the mission for our Solutions division to focus on internal
    requirements with a very limited participation in the external market in the
    near term.
To complement the fundamental changes made to
our operating philosophy, management implemented cost reduction measures in the
second half of 2002, including reductions in our work force, the consolidation
of our Houston office location (resulting in the relocation of our
headquarters), the reduction of office space used in our Calgary operations, an
overhaul of our compensation structure, and the imposition of strict controls
on all spending.
In addition to the significant operating
changes we made, we are guided by operating philosophies that are fundamental
to the success of our business and that we believe make us unique compared with
our largest competitors:
We intend to continue to grow our
    seismic data library using a combination of recording new data, cash
    purchases, non-monetary exchanges and creating new value-added products from
    our existing data.
We do not own or maintain seismic
    data gathering or field equipment and crews. Instead, we outsource these
    services, which gives us the flexibility to respond appropriately to
    changing market conditions, and renders our cash flows less susceptible to
    volatility. We believe this also enables us to select vendors with the best
    price, equipment and skill sets for a particular environment, geographical
    location or geophysical objective, and provides us with access to
    state-of-the-art equipment and emerging technologies.
We leverage our
    strong geophysical, technical and field operating management with our
    third-party outsourcing to align our interests with those of our
    underwriting customers. We believe this has allowed us to become a leading
    provider in certain core areas where local expertise is important. We
    believe we have developed expertise in certain areas of southern Louisiana,
    Gulf Coast Texas, Alberta and northeast British Columbia, and that there are
    opportunities to continue expansion in these areas and to repeat these
    experiences in the U.S. Rocky Mountain region, northern Louisiana and
    certain selected areas of the market outside North America.
We will not participate in
    speculative seismic data shoots. Instead, we seek significant underwriting
    levels before undertaking new acquisition projects, which is crucial to our
    success. Our goal is to attain 70% underwriting levels for our new seismic
    acquisition projects.
We pursue an aggressive marketing
    strategy to licensing our seismic data library.
We intend to maintain an
    extremely disciplined approach to making operating and capital expenditures.
Our Competitive Strengths
We believe that we have the following competitive
strengths:
Leading Market Position
. Within
our industry, we are considered to be one of the leading providers of seismic
data in North America. We believe our library of onshore 3D seismic data is one
of the largest available for licensing in the U.S. and Canada. We have ownership of over 33,000 square miles of 3D seismic data, the majority of
which is concentrated primarily in the onshore Gulf Coast of Texas, Louisiana
and Mississippi, western Canada and the offshore Gulf of Mexico. In addition,
we have ownership in 1.1 million linear miles of 2D seismic data, which we
believe makes us one of the largest providers of 2D data in North America.
Data Ownership Provides the Opportunity to Realize Long-Term Revenue Streams
. We own our seismic data and are
able to license the data an unlimited number of times, allowing for a
lengthened life of our seismic data library. The ability to license the seismic
data multiple times, as well as the commercial longevity of our seismic data,
is a result of many factors, including multiple interpretations of the same
data set, changes in ownership of mineral interests, new discoveries of
hydrocarbons, advances in drilling and production technology, creation of oil
and gas distribution infrastructures, and the advent of new seismic processing
techniques. Most of our data is expected to generate revenues for 10 years or
more. In some instances, samples of our older 2D data are still being licensed
after 25 years. The current weighted average of our 3D onshore data library is
3.5 years. We believe there is minimal obsolescence risk regarding our seismic
library.
Low Cost Business Model
. In order
to remain profitable in volatile business cycles, we believe it is essential to
have a low cost operating structure. We strive to maintain an efficient base of
assets and employees with which to conduct our operations. We do not own
seismic acquisition equipment or employ seismic acquisition crews, but rather,
engage third-party contractors with qualified equipment on an as-required basis
to shoot new data. We believe our decision to engage third party contractors on
an as-required basis results in substantially less volatility in our cash flows
by allowing us to respond more quickly to changes in the demand for our
products and services and minimizing our ongoing capital requirements. We do
not participate in speculative seismic shoots and impose strict capital
investment thresholds with targeted underwriting levels.
Leading Provider in Dominant Areas
.
Onshore seismic data collection requires a high degree of technical expertise,
extensive permitting and geographical knowledge. Over the past 20 years, our
personnel have developed a strong reputation for having these necessary skills.
We believe our vast experience, combined with our large and contiguous
database, encourages customers looking to acquire data in our area of
operations to select us as their provider. We also believe that our experience
and relationships with the relevant permitting agencies give us an advantage
over our competitors.
Diversified Customer Base
. We
market our seismic data to over 1,300 customers in the oil and gas industry,
and we have license arrangements with in excess of 1,000 customers. In 2003,
four of our top ten customers were rated investment grade by Standard &
Poor's, none of our customers accounted for more than 10% of total revenues,
and our top 10 customers accounted for approximately 40% of total revenues. We
have been providing seismic data to several of our largest customers for over
10 years.
Our Plan of Reorganization
In February 2002, we determined that it was
appropriate to change our revenue recognition policies for seismic data licensing
and certain data creation contracts. As a result, we restated our results of
operations for the nine months ended September 30, 2001, and for our fiscal
year ended December 31, 2000. The restatement, coupled with poor first quarter
2002 financial results, caused our covenant default on our $255 million
principal amount of senior unsecured notes (referred to in this reoffer
prospectus as the "Old Notes"). After such default, we and substantially all of
our United States subsidiaries negotiated a series of standstill agreements
with the initial holders of the Old Notes while the parties attempted to
negotiate a restructuring. Our negotiations with the holders of the Old Notes
were not successful and on June 6, 2003, certain of the holders of the Old Notes
filed, under Chapter 11 of the United States Bankruptcy Code, involuntary
petitions against us and sixteen of our subsidiaries that guaranteed the Old
Notes. On July 22, 2003, we filed voluntary petitions for relief under Chapter
11 of the United States Bankruptcy Code. The involuntary cases were dismissed
on July 25, 2003. The Bankruptcy Court confirmed our Third Amended Joint Plan
of Reorganization, as modified, supplemented or amended (the "Reorganization
Plan"), on March 18, 2004 and it became effective as of July 2, 2004.
Other Information
As used in this reoffer prospectus, unless the
context otherwise requires, references to the "Company," "Seitel," "we," "us"
or "our" mean Seitel, Inc., its subsidiaries and its interests in other
entities.  We were incorporated in the State of Delaware in 1982. Our principal
executive offices are located at 10811 South Westview Circle Drive, Suite 100, Building C, Houston, Texas 77043, and our telephone number at that address is
(713) 881-8900. Our website is located at
www.seitel.com
. Information
contained on our website is not a part of this reoffer prospectus.
Risk Factors
In considering whether to purchase our
common stock, we urge you to carefully consider all of the information we have
included in this reoffer prospectus and any reoffer prospectus supplement. In
particular, we urge you to carefully consider the risk factors described below
and other information contained in this reoffer prospectus. In addition, we
urge you to read "Forward-Looking Statements," where we describe additional
uncertainties associated with our business and forward-looking statements in
this reoffer prospectus.
Our substantial level of
indebtedness could adversely affect our financial condition.
We have a significant amount of leverage and
interest expense resulting from new indebtedness incurred in the financing and
other transactions completed in connection with the Reorganization Plan,
indebtedness of our Canadian subsidiaries, and other indebtedness in respect of
certain capital lease obligations. Subject to certain restrictions and
limitations in the indenture and in our new revolving credit facility, we may
incur additional indebtedness.
On the effective date of the Reorganization
Plan, we completed the sale of our outstanding 11¾% Senior Notes (the "Senior
Notes"), which were issued at an original issue discount. These proceeds were
used to partially fund payments of allowed creditors' claims required under the
Reorganization Plan. On April 16, 2004, we entered into a new revolving credit
facility with Wells Fargo Foothill, Inc. ("WFF") pursuant to which a revolving
loan commitment of $30 million, subject to borrowing base limitations, was made
available to us for borrowing on the effective date of the Reorganization Plan.
Permitted borrowings under the new revolving credit facility will be used by us
from time to time to fund our working capital requirements. Accordingly, while
the principal amount of our indebtedness has been reduced, our annual interest
expense is higher than it was prior to the effective date of the Reorganization
Plan and our total annual debt service requirements continue to be substantial.
The funds required to satisfy these requirements, which will derive principally
from our operating cash flows, will not be available for working capital or to
make investments in the future growth and development of our business.
As of September 30, 2004, we and the guarantors
of the Senior Notes had approximately $191.8 million of total indebtedness,
including $2.8 million of secured indebtedness, and our consolidated annual
debt service requirements together with the guarantors' aggregated
approximately $24.7 million, which is approximately $4.2 million higher than
our historical annual debt service. Although we issued $193 million aggregate
principal amount at maturity of Senior Notes, such Senior Notes were issued at
a discount of 2.325% resulting in gross proceeds to us of approximately $188.5
million. Thus, while not receiving gross proceeds equal to the principal amount
of the Senior Notes, we are obligated to repay the full principal amount
thereof at maturity and, subject to certain exceptions, we may not optionally
redeem the Senior Notes prior to maturity.
Our high level of indebtedness and annual debt
service requirements could have important consequences to you. For example, it
could:
require us to
dedicate a substantial portion of our cash flow from operations to interest and
principal payments on our indebtedness, thereby reducing the availability of our
operating cash flows for other purposes, such as capital expenditures, funding
seismic data acquisitions and working capital;
limit our flexibility
in planning for, or reacting to, changes in our business and the industry in
which we operate;
increase our
vulnerability to general adverse economic and industry conditions;
make it more difficult for us to
    satisfy our obligations on the Senior Notes;
expose us to fluctuations in the
    interest rate environment because the new revolving credit facility is at a
    variable rate of interest; and
limit our ability to borrow
    additional funds.
Our ability to make required payments of
principal and interest on borrowings under our new revolving credit facility
and in respect of the Senior Notes, incur additional indebtedness, and comply
with our various debt covenants, will depend primarily on our ability to
generate substantial operating cash flows. We expect to obtain the funds
necessary to pay our operating and other expenses and principal and interest on
the Senior Notes, borrowings under our new revolving credit facility and our
other indebtedness, from our operating cash flows and, if required, from
additional borrowings (to the extent available under our new revolving credit
facility and otherwise subject to our borrowing base). Our ability to satisfy
our payment obligations, therefore, depends substantially on our future
operating and financial performance, which necessarily will be affected by, and
subject to, industry, market, economic and other factors. We will not be able
to predict or control many of these factors, such as economic conditions in the
markets where we operate and competitive pressures.
If, for any reason, we do not have sufficient
funds from operating cash flows, cash and cash equivalents on hand, and borrowings
available under our new revolving credit facility to pay principal and
interest, when due, on the Senior Notes and on our other outstanding debt
obligations (including borrowings under the new revolving credit facility), we
will be required to seek to refinance all or a portion of our existing debt,
sell assets or seek to borrow additional funds or raise additional equity
capital. We cannot guarantee that we would be able to complete any of the
aforementioned refinancing transactions on terms that are commercially
reasonable or otherwise acceptable to us, if at all. In addition, the terms of
our agreements governing our indebtedness, including our new revolving credit
facility and the indenture governing the Senior Notes, presently restrict us
from implementing such refinancing transactions. The failure to generate
sufficient operating cash flows could significantly and adversely affect the
value of the Senior Notes and our ability to pay principal of and interest on
the Senior Notes.
Our new revolving credit facility contains
covenants requiring us to achieve and maintain certain financial results, and
restricts, among other things, the amount of our capital expenditures and our
ability to borrow money, grant additional liens on our assets, make particular
types of investments and restricted payments, sell our assets, and merge or
consolidate. Additionally, the indenture governing the Senior Notes contains
covenants that, among other things, limit our ability to incur certain
additional indebtedness, incur indebtedness that is subordinate to any other
indebtedness unless such indebtedness is expressly subordinate to the Senior
Notes and the guarantees, pay cash dividends or make other cash distributions
on or repurchase or redeem for cash our capital stock, make certain
investments, sell assets without using the net proceeds thereof as set forth in
the indenture, make certain capital expenditures in excess of $65 million plus
unused excess cash flow (as defined in the indenture governing the Senior Notes)
in any fiscal year, grant and permit certain liens, enter into sale-leaseback
transactions, enter into agreements affecting the ability of our restricted
subsidiaries to pay dividends, enter into transactions with affiliates, merge,
consolidate or sell all or substantially all of our assets, and grant security
interests or liens on our assets. In addition, the indenture governing the
Senior Notes provides that subject to certain conditions, if, at the end of
each fiscal year we have excess cash flow in excess of $5 million, we will be
required to use 50% of excess cash flow to fund an offer to repurchase the
Senior Notes on a pro rata basis at 100% of the principal amount of the Senior
Notes plus accrued and unpaid interest to the repurchase date. If such future
repurchase offers are accepted, the funds expended would not otherwise be
available to be used by us for other corporate purposes. Borrowings under the
new revolving credit facility are secured by a first priority, perfected
security interest in, and lien on, all of our U.S. tangible and intangible
assets, and we have pledged to WFF all of the issued and outstanding capital
stock of our U.S. subsidiaries. Any default in respect of these covenants could
materially and adversely affect our ability to conduct our business in the
ordinary course, enter into business transactions and impair our rights under
our other commercial agreements.
Failure to comply with the SEC's
final judgment of permanent injunction entered on consent against us could
adversely affect our business, and could subject us to further SEC
investigations, enforcement action, criminal prosecution and significant
penalties.
Seitel was the subject of a formal
investigation by the SEC's Division of Enforcement. Seitel cooperated fully
with the SEC during the course of its investigation, and reached a consensual
resolution of the SEC's civil complaint resulting in its consent to a final
judgment of permanent injunction (the "SEC Injunction") being entered on June
16, 2003 in the United States District Court for the Southern District of
Texas, Houston Division. The agreement for the entry of the SEC Injunction was
without admitting or denying the allegations in the SEC's complaint, which had
alleged violations of the reporting, books and records, internal controls and
proxy statement provisions of the Securities Exchange Act of 1934, as amended
(the "Exchange Act") and rules and regulations adopted under the Exchange Act. 
Seitel's chief executive officer and chief financial officer at the time of the
events giving rise to the SEC's complaint have been replaced.
The SEC Injunction, by its terms, permanently
restrains and enjoins us from, among other things: (1) filing with the SEC any
annual report under the Exchange Act that contains any untrue statement of a
material fact, which omits to state any material fact necessary in order to
make the statements made, in the light of the circumstances under which they
were made, not misleading, or that omits to disclose any information required
to be disclosed, (2) failing to make and keep accurate books, records and
accounts, (3) failing to devise and maintain an adequate system of internal
accounting controls and procedures, or (4) soliciting any proxy or consent or
authorization in respect of any security registered under Section 12 of the
Exchange Act in contravention of the SEC's proxy rules, or making any
solicitation by means of any proxy statement, form of proxy, notice of meeting
or other communication subject to the SEC's proxy rules which, at the time and
in light of the circumstances under which it is made, is false or misleading
with respect to any material fact, or which omits to state any material fact
necessary in order to make the statements made, in light of the circumstances
under which they were made, not misleading.
If we fail to comply with any of the provisions
of the SEC Injunction, such failure could adversely affect us, and the market
price of our common stock and the Senior Notes could significantly decline.
Limitations on our ability to
utilize net operating losses and other tax benefits may result in future net
operating income being taxable income.
Companies, which have had a change in ownership
as defined by the Internal Revenue Code of 1986, as amended (the "Code"),
are subject to limitations on certain tax attributes. The testing period for
ownership changes is a three-year moving period. We have had significant
ownership changes since the effective date of our Reorganization Plan, but do
not yet know whether there has been a change in ownership as defined by the
Code. In any event, we do not expect a significant impact to our financial
position or results of operation because we have a full valuation allowance
against the tax attributes subject to these limitations.
Our internal controls for financial
reporting and our disclosure controls and procedures may not prevent all
possible errors that could occur. Internal controls for financial reporting and
disclosure controls and procedures, no matter how well designed and operated, can
provide only reasonable, not absolute, assurance that the control system's
objective will be met.
Each quarter, our chief executive officer and
chief financial officer evaluate our internal controls for financial reporting
and our disclosure controls and procedures, which includes a review of the
objectives, design, implementation and effect of the controls in respect of the
information generated for use in our periodic reports. In the course of our
controls evaluation, we seek to identify data errors, control problems and to
confirm that appropriate corrective action, including process improvements,
were being undertaken. The overall goals of these various evaluation activities
are to monitor our internal controls for financial reporting and our disclosure
controls and procedures and to make modifications as necessary. Our intent in
this regard is that our internal controls for financial reporting and our
disclosure controls and procedures will be maintained as dynamic systems that
change (including with improvements and corrections) as conditions warrant.
In connection with the post-December 31, 2003
audit procedures conducted by Ernst & Young LLP, independent registered
accounting firm ("Ernst & Young"), we identified, and Ernst &
Young concurred, that a material weakness existed with our internal controls
for financial reporting which arose from our Reorganization Plan having been
confirmed on March 18, 2004, thereby requiring the expensing of an item carried
by us as a prepaid expense and reduction of certain disputed pre-bankruptcy
petition claims which had a partial offsetting effect. We accordingly amended
our Quarterly Report on Form 10-Q for the quarter ended March 31, 2004.
A control system, no matter how well designed
and operated, can provide only reasonable, not absolute, assurance that the
control system's objectives will be satisfied. Our management has concluded
that our internal controls for financial reporting and our disclosure controls
and procedures are designed to give a reasonable assurance that they are
effective to achieve their objectives. We cannot provide absolute assurance
that all possible future control issues within our company have been detected.
These inherent limitations include the real world possibility that judgments in
our decision-making could be faulty, and that isolated breakdowns could occur
because of simple human error or mistake. The design of our system of controls
is based in part upon certain assumptions about the likelihood of future
events, and there can be no assurance that any design will succeed absolutely
in achieving our stated goals under all potential future or unforeseeable
conditions. Because of the inherent limitations in a cost-effective control
system, misstatements due to error could occur and not be detected.
Our business could be adversely
affected by low exploration and development spending by oil and gas companies
and by low oil and gas prices.
Our business depends upon exploration and
development spending by oil and gas companies. Capital expenditures by oil and
gas companies depend upon several factors, including actual and forecasted
petroleum commodity prices and the companies' own short-term and strategic
plans. These capital expenditures may also be affected by worldwide economic
conditions. While we anticipate continued attractive commodity pricing, there
can be no assurance that oil and gas prices will not decline in the future. Low
oil and gas prices could result in decreased exploration and development
spending by oil and gas companies, which could affect our seismic data
business. Any future decline in oil and gas prices or sustained periods of
reduced capital expenditures by oil and gas companies could result in a
material adverse effect on our results of operations and cash flow.
A downturn in the availability of
private equity could have a negative impact on the ability of our customers to
raise capital necessary to purchase our seismic data.
Many of our customers
consist of independent oil and gas companies and private prospect-generating
companies that rely primarily on private equity capital to fund their exploration, production,
development and field management activities. A significant downturn in the
availability of private equity capital could have a material adverse impact on
the ability of such companies to obtain funding necessary to purchase our
seismic data which, in turn, could have a material adverse effect on our
results of operations and cash flow.
We invest significant amounts of
money in acquiring and processing seismic data for our data library with only
partial underwriting of the costs by customers.
We invest significant amounts of money in
acquiring and processing new seismic data to add to our data library. A portion
of these investments is funded by customer underwriters or sponsors, while the
remainder is sought to be recovered through future data licensing fees. The
amounts of underwriting and sponsorship and of these future data licensing fees
are uncertain and depend on a variety of factors, including the market prices
of oil and gas, customer demand for seismic data in our library, availability
of similar data from competitors and governmental regulations affecting oil and
gas exploration. We may not be able to recover all of the costs of or earn any
return on such investments. In periods where sales do not meet original
expectations, we may be required to record additional amortization and/or
impairment charges to reduce the carrying value of our data library, which
charges may be material to operating results in any period. In addition, timing
of the receipt of license fees can vary greatly from period to period.
Technological or regulatory changes or other developments could also adversely
affect the value of the data.
Because our business is
concentrated in the U.S. Gulf Coast and Canada, it could be adversely affected
by developments in the oil and gas business that affect these areas.
While we have seismic surveys in other areas,
most of the seismic data in our library covers areas along the U.S. Gulf Coast,
offshore in the U.S. Gulf of Mexico and in Canada. Because of this geographic
concentration, our results of operations and our cash flow could be materially
and adversely affected by events relating primarily to one of these regions
even if conditions in the oil and gas industry worldwide were favorable.
The amounts we amortize from our
data library each period have fluctuated in the past, and these fluctuations
may result in future material impairment charges.
We amortize the cost of our seismic data library
based, in part, on our estimates of future cash sales of data, excluding non-monetary
exchanges and deferred revenue. Changes in estimates of future sales could
result in impairment charges. Substantial changes in amortization rates can
have a significant effect on our reported results of operations. Additionally,
our accounting policy requires that we record amortization of our seismic data
library based on the greater of the income forecast method or the straight-line
method over the data's useful life.  In the fourth quarter of 2002, we revised
the estimated useful life of our seismic data library from ten years to five
years for offshore data and from ten years to seven years for onshore data,
resulting in additional amortization charges of $45.7 million in the fourth
quarter of 2002. In the third quarter of 2004, we further revised the estimated
useful life of our seismic data library from five years to four years for
offshore data and from seven years to four years for onshore data, resulting in
additional amortization charges of $59.1 million in the third quarter of 2004.
During 2003 and 2002, Seitel recorded
impairment charges of $30 million and $83 million, respectively, related to
several different components of our data library. Additional impairment charges
may also be required in the future based on industry conditions and our results
of operations.
Extensive
governmental regulation of our business affects our operations.
Our operations are subject to a variety of
federal, provincial, state, foreign and local laws and regulations, including
environmental laws. We invest financial and managerial resources to comply with
these laws and related permit requirements. Failure to timely obtain required
permits may result in delays in acquiring new data for the data library or
cause operating losses. Because these laws and our business may change from
time to time, we cannot predict the future cost of complying with these laws,
and expenditures to ensure our compliance could be material in the future. Modification
of existing laws or regulations or adoption of new laws or regulations limiting
exploration or production activities by oil and gas companies could adversely
affect us by reducing the demand for our seismic data.
Our competitors may have certain advantages.
Competition among geophysical service providers
historically has been, and will continue to be, intense. Certain competitors
have significantly greater financial and other resources than we do. These
larger and better financed operators could enjoy an advantage over us in a
competitive environment for contract awards and data sales and in the
development of new technologies.
Our operating results may vary due
to circumstances beyond our control.
Our operating results and available cash flow
may, in the future, vary in material respects from quarter to quarter. Factors
that could cause variations include (1) timing of the receipt and commencement
of contracts for data acquisition, (2) our customers' budgetary cycles and
their effect on the demand for geophysical activities, (3) seasonal factors and
(4) the timing of sales and selections of significant geophysical data from our
data library, which are not typically made in a linear or consistent pattern.
Reduced actual or estimated future sales may result in a requirement to record
impairment charges to reduce the carrying value of our data library. Such
charges, if required, could be material to operating results in the periods in
which they are recorded. For purposes of evaluating potential impairment
losses, we estimate the future cash flows attributable to a library component
by evaluating historical revenue trends, oil and gas prospectivity in
particular regions, general economic conditions affecting our customer base,
expected changes in technology and other factors that we deem relevant.  The
estimation of future cash flows is highly subjective, inherently imprecise and
could change materially from period to period based on the factors described in
the immediately preceding sentence, among others.  Accordingly, if conditions
change in the future, we may record further impairment losses relative to our
seismic data library, which could be material to our results of operations in
any particular reporting period.
We may face risks associated with
our foreign revenue generating activities.
Portions of our revenues are derived from our
Canadian activities and operations and, as a result, are denominated in
Canadian dollars. We are subject to foreign currency exchange rate risk on cash
flows related to sales, expenses, financing and investing transactions in
currencies other than the U.S. dollar. Foreign currency fluctuations could
result in a material adverse affect our results of operations.
We may be unable to attract and
retain key employees.
Our success depends upon attracting and
retaining highly skilled geophysical professionals and other technical
personnel. A failure to continue to attract and retain such individuals could
adversely affect our ability to compete in the geophysical services industry.
We may confront significant and potentially adverse competition for key
personnel, particularly during periods of increased demand for geophysical
services. Our success also will depend to a significant extent upon the
abilities and efforts of members of our senior management, the loss of whom
could adversely affect our business. Moreover, certain of our senior executive
officers have a very limited history of working together and may not be able to
develop an effective working relationship. Our president and chief executive
officer was appointed in December 2004, after serving as our chief financial
officer since May 2004. Currently, we are working to fill our chief financial
officer position. The failure of our executive officers and management personnel
to develop an effective or sustained working relationship could require us to
incur additional expenses and devote substantial senior management time and
resources to identify qualified replacement personnel.  We cannot be certain
that our senior executives will continue to be employed by us for an indefinite
period of time and, if they do, how long they will remain so employed. Our
inability to attract and retain key personnel could have a material adverse
effect on our ability to manage our business properly.
Mellon HBV and ValueAct Capital
Partners, L.P. each own a large percentage of our common stock, which would
enable them to influence the election of our directors and other matters
requiring the vote of our stockholders.
Mellon HBV Alternative Strategies, LLC ("Mellon
HBV") and its affiliates have represented to us that they beneficially own
36,518,051 shares (or 21.9%) of our outstanding common stock on a fully diluted
basis. ValueAct Capital Partners, L.P. ("ValueAct") and its affiliates have
represented to us that they own 20,330,063 shares (or 13.3%) of our outstanding
common stock. This substantial ownership of our common stock enables Mellon HBV
and ValueAct to significantly influence the election of our directors, with
respect to which there is cumulative voting, and possibly other corporate
matters and transactions that require stockholder approval.
Forward-Looking
Statements
This reoffer prospectus contains forward-looking
statements.  Statements contained in this reoffer prospectus about Seitel's
future outlook, prospects and plans, including those that express belief,
expectation, estimates or intentions, as well as those that are not statements
of historical fact, are forward looking. Terminology such as "may," "will," "should,"
"could," "might," "although there can be no assurance," "expect," "plan," "anticipate,"
"believe," "estimate," "predict," "potential" or "continue," the negative of
such terms or other comparable and analogous or synonymous terminology are
intended to identify forward-looking statements. Forward-looking statements
represent our reasonable present belief and are based on our current
expectations and assumptions with respect to future events. While we believe
our expectations and assumptions are reasonable, they involve risks and
uncertainties beyond our control that could cause the actual results or outcome
to differ materially from the expected results or outcome. Such factors
include, without limitation:
our ability to comply with the
    terms of the SEC Injunction;
the impact on our results of
    operations of our significant amount of debt and interest expense;
our significant amount of debt
    service;
our ability to obtain and
    maintain normal terms with our vendors and service providers;
our ability to maintain contracts
    that are critical to our operations;
any significant change in the oil
    and gas industry or the economy generally;
changes in the exploration
    budgets of our seismic data and related services customers;
actual customer demand for our
    seismic data and related services;
the timing and extent of changes
    in commodity prices for natural gas, crude oil and condensate and natural
    gas liquids and conditions in the capital markets and equity markets during
    the periods covered by the forward-looking statements;
our ability to obtain
alternate debt or equity financing on satisfactory terms if internally generated
funds are insufficient to fund our capital needs; and
all of the factors in this reoffer prospectus appearing under the
caption "Risk Factors."
We undertake no obligation to publicly update
or revise any forward-looking statements, whether as a result of new
information, future events or any other reason.  Also note that we provide a
cautionary discussion of risks and uncertainties under "Risk Factors,"
beginning on page five of this prospectus.  All forward-looking statements
attributable to Seitel or any person acting on its behalf are expressly
qualified in their entirety by the cautionary statements contained or referred
to in this reoffer prospectus.  In light of these risks, uncertainties and
assumptions, the forward-looking events discussed in this reoffer prospectus
may not occur.
The information in this reoffer prospectus is
not a complete description of our business or the risks associated with an
investment in our securities. There can be no assurance that other factors will
not affect the accuracy of these forward-looking statements or that our actual
results will not differ materially from the results anticipated in such forward-looking
statements. While it is impossible to identify all such factors, factors which
could cause actual results to differ materially from those estimated by us
include, but are not limited to, those factors or conditions described under "Risk
Factors."
Unaudited
Pro Forma Consolidated Financial Data
The Unaudited Pro Forma Consolidated Financial
Data contained in our prospectus dated January 10, 2005, on pages 42 through
45, which was filed pursuant to Rule 424(b) on January 12, 2005, is
incorporated herein by reference.
Where You Can
Find More Information
This reoffer prospectus constitutes a part of a
registration statement on Form S-8 that we filed with the SEC under the
Securities Act of 1933, as amended (the "Securities Act"). This reoffer
prospectus does not contain all the information set forth in the registration
statement.  You should refer to the registration statement and its related
exhibits and schedules for further information about our company and the shares
offered in this reoffer prospectus.  Statements contained in this reoffer
prospectus concerning the provisions of any document are not necessarily
complete and, in each instance, reference is made to the copy of that document
filed as an exhibit to the registration statement or otherwise filed with the
SEC, and each such statement is qualified by this reference.  The registration
statement and its exhibits and schedules are on file at the offices of the SEC
and may be inspected without charge.
We file annual, quarterly, and special reports,
proxy statements and other information with the SEC.  You can read and copy any
materials we file with the SEC at the SEC's public reference room at 450 Fifth Street, N.W., Washington, D.C. 20549.  You can obtain information about the
operation of the SEC's public reference room by calling the SEC at 1-800-SEC-0330. 
The SEC also maintains a Web site that contains information we file
electronically with the SEC, which you can access over the Internet at
http://www.sec.gov.
We are incorporating by reference in this
reoffer prospectus information we file with the SEC, which means that we are
disclosing important information to you by referring you to those documents. 
The information we incorporate by reference is an important part of this
reoffer prospectus, and later information that we file with the SEC
automatically will update and supersede this information.  We incorporate by
reference the documents listed below:
1)                  
Our annual report on Form 10-K for the year ended
December 31, 2003, filed on March 30, 2004.
2)                  
Our quarterly reports on Form 10-Q: (i) for the quarter ended
March 30, 2004, filed on May 10, 2004, as amended by Forms 10-Q/A
filed on June 2, 2004 and June 9, 2004, (ii) for the quarter ended
June 30, 2004, filed August 13, 2004; (iii) our quarterly report on
Form 10-Q for the quarter ended September 30, 2004, filed on November 22,
2004.
3)                  
Our current reports on Form 8-K filed on January 12, 2004,
January 29, 2004, February 6, 2004, February 18, 2004,
February 20, 2004, March 19, 2004, April 1, 2004, June 25,
2004, July 2, 2004, July 30, 2004, August 3, 2004,
August 9, 2004, August 12, 2004, August 31, 2004,
October 6, 2004, October 13, 2004, October 18, 2004, December 20,
2004, January 4, 2005 and January 7, 2005.
4)                  
The description of our common stock contained in our registration
statement on Form 8-A filed on June 28, 2004.
You may request
a copy of these filings, which we will provide to you at no cost, by writing or
telephoning us at the following address and telephone number:
Seitel, Inc.
10811 S. Westview Circle
Building C, Suite 100
Houston, Texas 77043
(713) 881-8900
Attention: 
Secretary
All documents filed by us pursuant to Sections
13(a), 13(c), 14 or 15(d) of the Exchange Act (excluding any information in
those documents that are deemed by the rules of the SEC to be furnished but not
filed) after the date of this filing and before the termination of this
offering shall be deemed to be incorporated in this reoffer prospectus and to
be a part hereof from the date of the filing of such document.  Any statement
contained in a document incorporated by reference herein shall be deemed to be
modified or superseded for all purposes to the extent that a statement
contained in this reoffer prospectus, or in any other subsequently filed
document which is also incorporated or deemed to be incorporated by reference,
modifies or supersedes such statement.  Any statement so modified or superseded
shall not be deemed, except as so modified or superseded, to constitute a part
of this reoffer prospectus.
Use of
Proceeds
We will not receive any proceeds from the sale
of shares of our common stock by the selling stockholders under this reoffer
prospectus.
Dilution
Our net tangible book value at September 30,
2004 was a deficit of approximately $11.2 million or $0.07 per share. The
offering of shares by the selling stockholders will not result in any dilution
to our net tangible book value. The market price of shares being offered may
not bear any reasonable relationship to our net tangible book value.
The Selling
Stockholders
The selling stockholders may sell up to
1,167,492 shares of our common stock pursuant to this reoffer prospectus.  This
includes 1,129,032 shares of restricted stock granted under the Plan at various
times prior to the dates of this reoffer prospectus, and 38,460 shares of our
common stock issued to non-employee directors pursuant to certain  non-plan
restricted stock award agreements as of July 21, 2004.  The following table
sets forth certain information known to us concerning each of the selling
stockholders.  The shares are being registered to permit the selling
stockholders to offer the shares for resale from time to time.  See "Plan of
Distribution."
Name
Shares of Common Stock Beneficially Owned Before
   Offering (1)
Number of Shares of Common Stock Offered Hereby (1)
Shares of Common Stock Beneficially Owned Follow
   Offering (2)
Percentage of Shares of Common Stock Owned After
   Offering (2)
Robert D. Monson (3)
1,000,000
1,000,000
-
*
Fred S. Zeidman (4), (5)
25,329
16,129
9,200
*
C. Robert Black (5), (6)
23,821
23,821
-
*
Kevin S. Flannery (5)
26,129
16,129
10,000
*
Jay H. Golding (5)
36,129
16,129
20,000
*
Ned S. Holmes (5), (6)
23,821
23,821
-
*
Robert Kelley (5), (6)
23,821
23,821
-
*
Charles H. Mouquin (5), (6)
232,713
23,821
208,892
*
J. D. Williams (5), (6)
23,821
23,821
-
*
*      Less than 1%, based on
151,543,175 shares outstanding on January 21, 2005.
(1)        Ownership is determined as of January
21, 2005 and in accordance with Rule 13d-3 under the Exchange Act. The actual
number of shares beneficially owned and offered for sale is subject to
adjustment and could be materially less or more than the estimated amount
indicated depending upon factors, which we cannot predict at this time.
(2)        Assumes all the shares offered hereby
are sold to persons who are not affiliates of the selling stockholders and the
selling stockholders sell no other shares they beneficially own.
(3)        Mr. Monson is our president and chief
executive officer, and was our chief financial officer from May 10, 2004 until
December 15, 2004.  The shares offered by Mr. Monson were issued to him on
December 15, 2004, pursuant to a restricted stock agreement under the
Plan. The 1,000,000 shares of restricted common stock vest one-third on each of
December 15, 2005, December 15, 2006 and December 15, 2007.
(4)        Mr. Zeidman is our chairman of the
board of directors.  He served as our interim president and chief executive
officer from November 6, 2002 until December 6, 2002, and from October 5, 2004
until December 15, 2004.  Mr. Zeidman holds ten-year options to purchase
100,000 shares of common stock at an exercise price of $1.30 per share, which
are not included in this table.  These options become exercisable on July 2,
2005, and were granted in connection with our Reorganization Plan.
(5)        Messrs. Zeidman, Black, Flannery, Golding, Holmes, Kelley, Mouquin and Williams are members of our board of
directors.  Each of their shares offered include 16,129 shares of restricted
common stock granted on January 3, 2005, pursuant to a restricted stock
agreement under the Plan. These restricted shares vest on January 3, 2008.
(6)        The shares offered include 7,692
shares of restricted common stock granted on July 21, 2004, pursuant to a
restricted stock agreement.  These restricted shares vest on July 21, 2007.
Plan of Distribution
We will not receive any of the proceeds from
the sale of the common stock by the selling stockholders pursuant to this
reoffer prospectus. The aggregate proceeds to the selling stockholders from the
sale of the common stock will be the purchase price of the common stock less
any discounts and commissions. A selling stockholder reserves the right to
accept and, together with its agents, to reject, any proposed purchased of
common stock to be made directly or through agents.  This reoffer prospectus
covers the resale of shares of our common stock by the selling stockholders. 
As used in this reoffer prospectus, "selling stockholders" includes holders of
shares of our common stock received from a selling stockholder after the date
of this reoffer prospectus and who received such shares by gift or by other
transfer by such selling stockholder to an immediate family member of such
stockholder, by will or through operation of the laws of descent and
distribution, and their respective administrators, guardians, receivers,
executors or other persons acting in a similar capacity.
The common stock may be sold from time to time
to purchasers:
directly by the selling
    stockholders and their successors, which includes their transferees, pledgees or donees or their successors; or
through underwriters,
    broker-dealers or agents who may receive compensation in the form of
    discounts, concessions or commissions from the selling stockholders or the
    purchasers of the common stock. These discounts, concessions or commissions
    may be in excess of those customary in the types of transactions involved.
The selling stockholders and any underwriters,
broker-dealers or agents who participate in the distribution of the common
stock may be deemed to be "underwriters" within the meaning of the Securities
Act. As a result, any profits on the sale of the common stock by selling
stockholders and any discounts, commissions or concessions received by any such
broker-dealers or agents may be deemed to be underwriting discounts, and "underwriters"
within the meaning of the Securities Act will be subject to prospectus delivery
requirements of the Securities Act. If the selling stockholders are deemed to
be underwriters, the selling stockholders may be subject to certain statutory
liabilities, including, without limitation, liabilities under Sections 11, 12
and 17 of the Securities Act and Rule 10b-5 under the Exchange Act. If the
common stock is sold through underwriters, broker-dealers or agents, the
selling stockholders will be responsible for underwriting discounts or
commissions or agent's commissions.
The common stock may be sold in one or more
transactions at:
fixed prices;
prevailing market prices at the
    time of sale;
prices related to such prevailing
    market prices;
varying prices determined at the
    time of sale; or
negotiated prices.
These sales may be effected in transactions:
on any national securities
    exchange or quotation service on which the common stock may be listed or
    quoted at the time of the sale;
in the over-the-counter market;
otherwise than on such exchanges
    or services or in the over-the-counter market;
through the writing
and exercise of options, whether such options are listed on an options exchange
or otherwise; or
through the settlement of short
    sales.
These transactions may include block
transactions or crosses. Crosses are transactions in which the same broker acts
as an agent on both sides of the trade.
In connection with the sales of the common
stock or otherwise, the selling stockholders may enter into hedging transactions
with broker-dealers or other financial institutions. These broker-dealers or
other financial institutions may in turn engage in short sales of the common
stock in the course of hedging their positions. The selling stockholders may
also sell the common stock short and deliver common stock to close out short
positions, or loan or pledge common stock to broker-dealers that in turn may
sell the common stock.
Broker-dealers engaged by the selling
stockholders may arrange for other brokers-dealers to participate in sales. 
Broker-dealers may receive commissions or discounts from the selling
stockholders (or, if any broker-dealer acts as agent for the purchaser of
shares, from the purchaser) in amounts to be negotiated. The selling
stockholders do not expect these commissions and discounts to exceed what is
customary in the types of transactions involved.
The selling stockholders may from time to time
pledge or grant a security interest in some or all of the shares of common
stock owned by them and, if they default in the performance of their secured
obligations, the pledgees or secured  parties may offer and sell the shares of
common stock from time to time under this reoffer prospectus, or under an
amendment to this reoffer prospectus under Rule 424(b)(3) or other
applicable provision of the Securities Act amending the list of selling
stockholders to include the pledgee, transferee or other successors in interest
as selling stockholders under this reoffer prospectus.
To our knowledge, there are currently no plans,
arrangements or understandings between any selling stockholders and any
underwriter, broker-dealer or agent regarding the sale of the common stock.
At the time a particular offering is made, if
required, a reoffer prospectus supplement will be distributed, which will set
forth the names of the selling stockholders, the aggregate amount and type of
securities being offered, the price at which the securities are being sold and
other material terms of the offering, including the name or names of any underwriters,
broker-dealers or agents, any discounts, commissions and other terms
constituting compensation from the selling stockholders and any discounts,
commissions or concessions allowed or reallowed to paid broker-dealers.
We cannot be certain that any selling
stockholder will sell any or all of the common stock pursuant to this reoffer
prospectus. Further, we cannot assure you that any such selling stockholder
will not transfer, devise or gift the common stock by other means not described
in this reoffer prospectus. In addition, any common stock covered by this
reoffer prospectus that qualifies for sale pursuant to Rule 144 of the
Securities Act may be sold under Rule 144 rather than under this reoffer
prospectus. The common stock may be sold in some states only through registered
or licensed brokers or dealers. In addition, in some states the common stock
may not be sold unless it has been registered or qualified for sale or an
exemption from registration or qualification is available and complied with.
The selling stockholders and any other person
participating in the sale of the common stock will be subject to the Exchange
Act. The Exchange Act rules include, without limitation, Regulation M, which
may limit the timing of purchases and sales of any of the common stock by the
selling stockholders and any other such person. In addition, Regulation M may
restrict the ability of any person engaged in the distribution of the common
stock and the ability of any person or entity to engage in market-making activities
with respect to the common stock.
We have agreed to pay substantially all
expenses incidental to the registration, offering and sale of the common stock
to the public, other than commissions, fees and discounts of underwriters,
brokers, dealers and agents.
Legal Matters
Certain legal matters with respect to the
common stock offered hereby will be passed upon for us by Porter & Hedges,
L.L.P., Houston, Texas.  Any underwriters will be advised about other issues
relating thereto by their own legal counsel.
Experts
The consolidated financial statements of
Seitel, Inc. at December 31, 2003 and 2002, and for each of the three years in
the period ended December 31, 2003, appearing in Seitel's Form 10-K for the year
ended December 31, 2003, have been
audited by Ernst & Young, LLP, independent registered public accounting
firm, as set forth in their reports (which contain an explanatory paragraph
describing conditions that raise substantial doubt about the company's ability
to continue as a going concern as described in Notes A and B to the consolidated
financial statements) thereon incorporated by reference.  Such consolidated
financial statements have been incorporated herein by reference in reliance upon such
reports given on the authority of such firm as experts in accounting and
auditing.
PART II
Information Required In Registration Statement
Item 3.        Incorporation of Documents by Reference.
We are incorporating by reference into this
registration statement information we file with the SEC, which means that we
are disclosing important information to you by referring you to those
documents.  The information we incorporate by reference is an important part of
this registration statement, and later information that we file with the SEC
automatically will update and supersede this information.  We incorporate by
reference the documents listed below:
1)                  
Our annual report on Form 10-K for the year ended December 31,
2003, filed on March 30, 2004.
2)                  
Our quarterly reports on Form 10-Q: (i) for the quarter ended
March 30, 2004, filed on May 10, 2004, as  amended by Forms 10-Q/A
filed on June 2, 2004 and June 9, 2004, (ii) for the quarter ended June 30,
2004, filed August 13, 2004; (iii) our quarterly report on Form 10-Q for the
quarter ended September 30, 2004, filed on November 22, 2004.
3)                  
Our current reports on Form 8-K filed on January 12, 2004,
January 29, 2004, February 6, 2004, February 18, 2004, February 20, 2004, March
19, 2004, April 1, 2004, June 25, 2004, July 2, 2004, July 30, 2004, August 3,
2004, August 9, 2004, August 12, 2004, August 31, 2004, October 6, 2004,
October 13, 2004, October 18, 2004, December 20, 2004, January 4, 2005 and
January 7, 2005.
4)                  
The description of our common stock contained in our registration
statement on Form 8-A filed on June 28, 2004.
You may request a copy of these filings, which
we will provide to you at no cost, by writing or telephoning us at the
following address and telephone number:
Seitel, Inc.
10811 S. Westview Circle
Building C, Suite 100
Houston, Texas 77043
(713) 881-8900
Attention:  Secretary
All documents filed by us pursuant to Sections
13(a), 13(c), 14 or 15(d) of the Exchange Act (excluding any information in
those documents that are deemed by the rules of the SEC to be furnished but not
filed) after the date of this filing and before the termination of this
offering shall be deemed to be incorporated into this registration statement
and to be a part hereof from the date of the filing of such document.  Any
statement contained in a document incorporated by reference herein shall be
deemed to be modified or superseded for all purposes to the extent that a
statement contained in this registration statement, or in any other
subsequently filed document which is also incorporated or deemed to be
incorporated by reference, modifies or supersedes such statement.  Any
statement so modified or superseded shall not be deemed, except as so modified
or superseded, to constitute a part of this registration statement.
Item 4.        Description of Securities.
Not applicable.
Item 5.        Interests of Named Experts and Counsel.
Not applicable.
Item 6.        Indemnification of Directors and Officers.
The following is a summary of the statutes,
charter and bylaw provisions or other arrangements under which the directors
and officers of Seitel, Inc. are insured or indemnified against liability in
their capacities as such.
Seitel is incorporated under the laws of the
State of Delaware. Section 145 of the General Corporation Law of the State of
Delaware (the "Delaware Statute") provides that a Delaware corporation may
indemnify any persons who are, or are threatened to be made, parties to any
threatened, pending or completed action, suit or proceeding, whether civil,
criminal, administrative or investigative (a "proceeding"), other than an
action by or in the right of such corporation, by reason of the fact that such
person is or was an officer, director, employee or agent of such corporation,
or is or was serving at the request of such corporation as a director, officer,
employee or agent of another corporation or enterprise (an "indemnified
capacity"). The indemnity may include expenses, including attorneys' fees,
judgments, fines and amounts paid in settlement actually and reasonably
incurred by such person in connection with such action, suit or proceeding,
provided such person acted in good faith and in a manner he reasonably believed
to be in or not opposed to the corporation's best interests and, with respect
to any criminal action or proceeding, had no reasonable cause to believe that
his conduct was illegal. Similar provisions apply to actions brought by or in
the right of the corporation, except that no indemnification shall be made
without judicial approval if the officer or director is adjudged to be liable
to the corporation. Where an officer or director is successful on the merits or
otherwise in the defense of any action referred to above, the corporation must
indemnify him against the expenses which such officer or director has actually
and reasonably incurred. The Delaware Statute further authorizes a corporation
to purchase and maintain insurance on behalf of any indemnified person against
any liability asserted against him and incurred by him in any indemnified
capacity, or arising out of his status as such, regardless of whether the
corporation would otherwise have the power to indemnify him under the Delaware
Statute.
The amended and restated certificate of
incorporation of Seitel and the by-laws of Seitel provide that Seitel shall
indemnify its directors and officers to the full extent authorized by law.
Moreover, the amended and restated certificate of incorporation of Seitel
provides that no director shall be liable to Seitel or its stockholders for
monetary damages for breach of his or her fiduciary duty as a director,
provided that nothing contained therein shall eliminate or limit the liability
of a director (i) for any breach of the director's duty of loyalty to Seitel or
its stockholders, (ii) for acts or omissions not in good faith or which involve
intentional misconduct or a knowing violation of the law, (iii) under Section
174 of the General Corporation Law of the State of Delaware or (iv) for any
transaction for which the director derived an improper personal benefit. If the
General Corporation Law of the State of Delaware is amended to authorize
corporate action further eliminating or limiting the personal liability of
directors, then the liability of a director of Seitel shall be eliminated or
limited to the fullest extent permitted by the General Corporation Law of the
State of Delaware, as so amended.
Seitel has purchased insurance on behalf of its
directors and officers against certain liabilities that may be asserted
against, or incurred by, such persons in their capacities as directors or
officers of the registrant, or that may arise out of their status as directors
or officers of the registrant, including liabilities under the federal and
state securities laws.
Item 7.        Exemption from Registration Claimed.
The 1,167,492 shares of restricted stock
registered for resale by this registration statement were issued to certain
directors and an executive officer of the Company as inducement or incentive
awards.  These grants were exempt from registration pursuant to Section 4(2) of
the Securities Act.
Item 8.        Exhibits
.
The following exhibits are filed herewith pursuant to the requirements of Item 601 of
Regulation S-K:
Exhibit
No.
Description of Exhibit
4.1
Seitel, Inc. 2004 Stock Option Plan (incorporated by
  reference from Exhibit 10.1 to the Company's registration statement on Form S-4,
  as filed with the SEC on December 21, 2004, File No. 333-121476).
4.2*
Form of Restricted Stock Award Agreement for employee
  grants made under the Seitel, Inc. 2004 Stock Option Plan.
4.3*
Form of Non-Employee Director Restricted Stock Agreement
  for grants made under the Seitel, Inc. 2004 Stock Option Plan.
4.4*
Restricted Stock Agreement for Robert D. Monson dated
  December 15, 2004.
4.5*
Stock Option Agreement for Fred S. Zeidman dated July 2,
  2004.
4.6*
Form of Non-Employee Director Restricted Stock Agreement
  for grants dated July 21, 2004.
5.1*
Opinion of Porter & Hedges, L.L.P. as to the legality
  of the securities being registered.
23.1*
Consent of Ernst & Young, LLP.
23.2*
Consent of Porter & Hedges, L.L.P. (included in
  Exhibit 5.1).
24.1*
Power of Attorney (contained in signature page).
*      Filed herewith.
Item 9.        Undertakings
.
(a)                
The undersigned registrants hereby undertake:
1.                   
To file, during any period in which offers or sales are being
made, a post-effective amendment to this registration statement:
(i)                  
To include any prospectus required by section 10(a)(3) of the
Securities Act of 1933;
(ii)                
To reflect in the prospectus any facts or events arising after
the effective date of the registration statement (or the most recent post-effective
amendment thereof) which, individually or in the aggregate, represent a
fundamental change in the information set forth in the registration statement.
Notwithstanding the foregoing, any increase or decrease in volume of securities
offered (if the total dollar value of securities offered would not exceed that
which was registered) and any deviation from the low or high end of the
estimated maximum offering range may be reflected in the form of prospectus
filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the
changes in volume and price represent no more than 20% change in the maximum
aggregate offering price set forth in the "Calculation of Registration Fee"
table in the effective registration statement.
(iii)               
To include any material information with respect to the plan of
distribution not previously disclosed in the registration statement or any
material change to such information in the registration statement;
provided however, that paragraphs (a)(1)(i) and
(a)(1)(ii)  do not apply if the information required to be included in a post-effective
amendment by those paragraphs is contained in periodic reports filed with or
furnished to the Commission by the registrant pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934 that are incorporated by reference in
the registration statement.
2.                   
That, for the purpose of determining any liability under the
Securities Act of 1933, each such post-effective amendment shall be deemed to
be a new registration statement relating to the securities offered therein, and
the offering of such securities at that time shall be deemed to be the initial
bona
fide
offering thereof.
3.                   
To remove from registration by means of a post-effective
amendment any of the securities being registered which remain unsold at the
termination of the offering.
(b)                
The undersigned registrant hereby undertakes that, for purposes
of determining any liability under the Securities Act of 1933, each filing of
the registrant's annual report pursuant to Section 13(a) or 15(d) of the
Securities Exchange Act of 1934 (and, where applicable, each filing of any
employee benefit plan's annual report pursuant to Section 15(d) of the
Securities Exchange Act of 1934) that is incorporated by reference in the
registration statement shall be deemed to be a new registration statement
relating to the securities offered therein, and the offering of such securities
at that time shall be deemed to be the initial
bona fide
offering
thereof.
(c)                
Insofar as indemnification for liabilities arising under the
Securities Act of 1933 may be permitted to directors, officers and controlling
persons of the registrants pursuant to the foregoing provisions, or otherwise,
the registrants have been advised that in the opinion of the Securities and
Exchange Commission such indemnification is against public policy as expressed
in the Act and is, therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment by the
registrants of expenses incurred or paid by a director, officer or controlling
person of the registrants in the successful defense of any action, suit or
proceeding) is asserted by such director, officer or controlling person in connection
with the securities being registered, the registrants will, unless in the
opinion of its counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question whether such
indemnification by it is against public policy as expressed in the Act and will
be governed by the final adjudication of such issue.
SIGNATURES
Pursuant to the
requirements of the Securities Act of 1933, the registrant certifies that it
has reasonable grounds to believe that it meets all of the requirements for
filing on Form S-8 and has duly caused this registration statement to be signed
on its behalf by the undersigned, thereunto duly authorized, in the city of
Houston, state of Texas, on the 14th day of February, 2005.
SEITEL, INC.
By:
/s/ Robert D. Monson
Robert D. Monson
President and Chief Executive
Officer
POWER OF ATTORNEY AND SIGNATURES
We the
undersigned officers and directors of Seitel, Inc., hereby, severally
constitute and appoint Robert D. Monson and Marcia H. Kendrick each of them
singly, our true and lawful attorneys with full power to them and each of them
singly, to sign for us and in our names in the capacities indicated below, the
registration statement on Form S-8 filed herewith and any and all pre-effective
and post-effective amendments to said registration statement and any subsequent
registration statement for the same offering which may be filed under Rule
462(b) and generally to do all such things in our names and on our behalf in
our capacities as officers and directors to enable Seitel, Inc. to comply with
the provisions of the Securities Act of 1933, and all requirements of the
Securities and Exchange Commission, hereby ratifying and confirming our
signatures as they may be signed by our said attorneys, or any of them, to said
registration statement and any and all amendments thereto or to any subsequent
registration statement for the same offering which may be filed under Rule
462(b).
Pursuant to
the requirements of the Securities Act of 1933, this registration statement has
been signed by the following persons in the capacities and on the dates
indicated.
Signature
Title
Date
/s/ Robert D. Monson
President and Chief Executive Officer
(Principal Executive Officer)
February 14, 2005
Robert D. Monson
/s/ Fred S. Zeidman
Chairman of the Board of Directors
February 14, 2005
Fred S. Zeidman
/s/ Marcia H. Kendrick
Senior Vice President, Chief Accounting Officer, Interim
  Chief Financial Officer and Interim Secretary
February 14, 2005
Marcia H. Kendrick
(Principal Financial and Accounting Officer)
/s/ C. Robert Black
Director
February 14, 2005
C. Robert Black
Director
February 14, 2005
Kevin S. Flannery
Director
February 14, 2005
Jay H. Golding
/s/ Ned. S. Holmes
Director
February 14, 2005
Ned S. Holmes
/s/ Robert Kelley
Director
February 14, 2005
Robert Kelley
/s/ Charles H. Mouquin
Director
February 14, 2005
Charles H. Mouquin
/s/ J.D. Williams
Director
February 14, 2005
J.D. Williams
EXHIBIT INDEX
Exhibit
No.
Description of Exhibit
4.1
Seitel, Inc. 2004 Stock Option Plan (incorporated by
  reference from Exhibit 10.1 to the Company's registration statement on Form S-4,
  as filed with the SEC on December 21, 2004, File No. 333-121476).
4.2*
Form of Restricted Stock Award Agreement for employee
  grants made under the Seitel, Inc. 2004 Stock Option Plan.
4.3*
Form of Non-Employee Director Restricted Stock Agreement
  for grants made under the Seitel, Inc. 2004 Stock Option Plan.
4.4*
Restricted Stock Agreement for Robert D. Monson dated
  December 15, 2004.
4.5*
Stock Option Agreement for Fred S. Zeidman dated July 2,
  2004.
4.6*
Form of Non-Employee Director Restricted Stock Agreement
  for grants dated July 21, 2004.
5.1*
Opinion of Porter & Hedges, L.L.P. as to the legality
  of the securities being registered.
23.1*
Consent of Ernst & Young, LLP.
23.2*
Consent of Porter & Hedges, L.L.P. (included in
  Exhibit 5.1).
24.1*
Power of Attorney (contained in signature page).