Seitel Announces Proposed $190 Million Private Offering of Senior Notes Due 2012 HOUSTON, June 10 /PRNewswire-FirstCall/ -- Seitel, Inc. (OTC:SEIEQ) (BULLETIN BOARD: SEIEQ) (TSE:OSL), today announced that it proposes, subject to market and other customary conditions, to commence a private offering of $190 million aggregate principal amount of new senior unsecured notes due 2012 as provided in its chapter 11 plan of reorganization, which was confirmed by the U.S. Bankruptcy Court on March 18, 2004 (the "Plan"). Upon the completion of the offering, the entire net proceeds from the sale of the new senior notes will be deposited by Seitel into escrow pending the completion of equity financing transactions contemplated by the Plan that will provide additional funds which, upon the release from escrow of the net proceeds from the notes offering, will be used in the aggregate, together with certain cash on hand, to pay 100% of allowed creditors' claims, together with post-petition interest, as required under the Plan. Seitel can give no assurance that the proposed offering of new senior notes will be completed. Seitel is not registering the offer and sale of the new senior notes under the Securities Act of 1933, as amended (the "Securities Act"), or under any state securities laws. The new senior notes will be issued to the initial purchasers thereof in a private offering under Section 4(2) of the Securities Act, and the initial purchasers, in turn, will resell the notes only (i) to "qualified institutional buyers" in reliance on the exemption from registration pursuant to Rule 144A under the Securities Act and (ii) outside the United States in offshore transactions to non-U.S. persons in reliance on Regulation S under the Securities Act. The new senior notes may not be offered or sold within the U.S. or to, or for the account or benefit of, any U.S. person unless the offer or sale is registered under, or would qualify for an exemption from the registration requirements of, the Securities Act and applicable state securities laws. This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, nor shall there be any sale of the new senior notes in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. ABOUT SEITEL Seitel is 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. Seitel has 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. We believe that our library of onshore seismic data is one of the largest available for licensing in the United States and Canada. Our seismic data library includes both onshore and offshore three-dimensional (3D) and two-dimensional (2D) data and offshore multi-component data. Seitel has ownership in approximately 32,000 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. Seitel markets its 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. Statements in this press release about the future outlook related to Seitel (including its plans to offer the new senior notes and consummate the offering, the anticipated terms of the notes and the anticipated use of the net proceeds of the offering) involve known and unknown risks and uncertainties, which may cause Seitel's actual results to differ materially from expected results. While Seitel believes its forecasting assumptions are reasonable, there are factors that are hard to predict and influenced by economic and other conditions that are beyond its control. Among the other important factors which could cause actual results to differ materially from those in the forward-looking statements are the failure of the Plan to otherwise become effective, market conditions and other factors beyond Seitel's control, including the risk factors and other cautionary statements detailed in the Disclosure Statement relating to the Plan or in Seitel's filings with the Securities and Exchange Commission, including its most recent Form 10-K Annual Report, a copy of which may be obtained from Seitel without charge. DATASOURCE: Seitel, Inc. CONTACT: Leonard M. Goldstein, General Counsel, or Robert D. Monson, Chief Financial Officer, both of Seitel, Inc., +1-713-881-8900 Web site: http://www.seitel-inc.com/

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