----

**  **

**UNITED STATESSECURITIES AND EXCHANGE COMMISSION  Washington, DC 20549**

----

**FORM 10-Q**

| **T** | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES  EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2008

 

OR

 

o

TRANSITION REPORT PURSUANT TO SECTION  13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

Commission File Number: 333-144844

 

**SEITEL, INC.**

(Exact name of registrant as specified in its charter)
   
Delaware

76-0025431

(State or other jurisdiction of

(I.R.S. Employer

incorporation or organization)

Identification No.)
      
10811 S. Westview Circle Drive
   
Building C, Suite 100

Houston, Texas

77043

(Address of principal executive offices)

(Zip Code)
      
Registrant's telephone  number, including area code:

(713) 881-8900

 

Indicate by check markwhether the registrant (1) has filed all reports required to be filed bySection 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding12 months (or for such shorter period that the registrant was required to filesuch reports), and (2) has been subject to such filing requirements for thepast 90 days.

Yes

**T**

No

o

 

Indicate by check markwhether the registrant is a large accelerated filer, an accelerated filer, anon-accelerated filer, or a smaller reporting company. See definition of "acceleratedfiler," "large accelerated filer" and "smaller reportingcompany" in Rule 12b-2 of the Exchange Act. (Check one): 

 

Large accelerated filer

o

Accelerated filer

o

Non-accelerated filer

**T**
      
Smaller reporting company

o

 

Indicate by check mark whether the registrant is a shell company (asdefined in Rule 12b-2 of the Exchange Act).

 

Yes

o

No

**T**

Indicate by check mark whether theregistrant has filed all documents and reports required to be filed by Section12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to thedistribution of securities under a plan confirmed by a court.

 

Yes

**T**

No

o

Asof November 11, 2008, there were 100 shares of the Company's common stock, par value$.001 per share outstanding.

 
 
**INDEX**

Page
PART I.

FINANCIAL INFORMATION

Item 1.

	Financial Statements..................................................................................	

3

	Condensed  Consolidated Balance Sheets (Unaudited)....................................	

3

	Condensed  Consolidated Statements of Operations (Unaudited)......................	

4

	Condensed Consolidated Statements of Comprehensive  Loss (Unaudited)........ 

6

	Condensed  Consolidated Statement of Stockholder's Equity (Unaudited)..........	

7

	Condensed Consolidated  Statements of Cash Flows (Unaudited)..................... 

8

	Notes to Condensed Consolidated Interim Financial Statements  (Unaudited).... 

10
            

Item 2.

	 

	Management's Discussion and Analysis of  Financial Condition  

	and  Results of Operations.............................................................................	

29

Item 3.

	Quantitative and Qualitative Disclosures about Market  Risk.............................. 

41

Item 4T.

Controls and Procedures...............................................................................	

41

PART II.

OTHER INFORMATION

Item 1.A.

RiskFactors................................................................................................	

42

Item 6.

	Exhibits.......................................................................................................	

42

	Signatures..................................................................................................................

43
 
*(Index)*
 **PART I - FINANCIAL INFORMATION****Item 1.     FINANCIAL STATEMENTS**
******SEITEL, INC.AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS**

*(In thousands, except share and per share amounts)*

 

* *

(Unaudited)

September 30,

December 31,

2008

2007

ASSETS

     Cash and cash equivalents

$

36,828

$

43,333

     Restricted cash

112

110

     Receivables

        Trade, net of allowance for doubtful accounts of

           $756 and $688, respectively

51,386

51,915

        Notes and  other, net of allowance for doubtful accounts

           of $225 and $238,  respectively

427

2,190

     Net seismic data library, net of accumulated amortization

        of $263,467 and $140,742, respectively

297,469

349,039

     Net property and equipment, net of  accumulated depreciation

        and amortization of $4,217 and $2,335, respectively

9,478

10,996

     Investment in marketable securities

1,798

4,224

     Prepaid expenses, deferred charges and other	

19,710

22,263

     Intangible assets, net of accumulated amortization of

        $9,835 and $5,515, respectively

45,647

51,785

     Goodwill

200,458

207,246

     TOTAL ASSETS

$

663,313

$

743,101

     

LIABILITIES AND STOCKHOLDER'S EQUITY

     LIABILITIES

        Accounts payable and accrued liabilities

$

39,797

$

49,325

        Income taxes payable

992

948

        Debt

           Senior Notes

402,269

402,333

           Notes payable

268

300

        Obligations under capital leases

3,494

3,848

        Deferred revenue

50,889

48,151

        Deferred income taxes

10,787

17,238

     TOTAL LIABILITIES

508,496

522,143

     

COMMITMENTS AND  CONTINGENCIES 

     

STOCKHOLDER'S EQUITY

        Common stock, par value $.001 per share; 100 shares  authorized,

           issued and outstanding at September 30, 2008 and	

           December 31, 2007

-

-

        Additional paid-in capital

269,777

264,805

        Retained deficit

(133,140

)

(77,113

)

        Accumulated other comprehensive income

18,180

33,266

     TOTAL  STOCKHOLDER'S EQUITY

154,817

220,958

TOTAL LIABILITIES AND  STOCKHOLDER'S EQUITY

$

663,313

$

743,101

The accompanying notes are an integral part ofthese condensed consolidated financial statements.

*(Index)*

**SEITEL, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OFOPERATIONS**(Unaudited)*(In thousands)*

Three Months Ended

September 30,

2008

2007

REVENUE

$

46,091

$

28,356

EXPENSES:

      Depreciation and  amortization

43,592

36,005

      Impairment of  intangible asset

225

-

      Cost of sales

72

72

      Selling, general  and administrative 

9,850

9,902

      Merger

-

807

53,739

46,786

LOSS FROM OPERATIONS

(7,648

)

(18,430

)

Interest expense, net

(9,967

)

(9,895

)

Foreign currency  exchange gains (losses)

(729

)

1,360

Other income

-

39

Loss before income  taxes

(18,344

)

(26,926

)

Benefit for income  taxes

(1,152

)

(3,701

)

NET LOSS

$

(17,192

)

$

(23,225

)

 

The accompanying notes are an integral part of these condensed consolidatedfinancial statements.
****
*(Index)*

**SEITEL, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS**(Unaudited)*(In thousands)*

SUCCESSOR

PREDECESSOR

PERIOD

PERIOD

Nine Months Ended

February 14, 2007 - 

January 1, 2007 - 

September 30, 2008

September 30, 2007

February 13, 2007

REVENUE

$

138,192

$

76,025

$

19,010

EXPENSES:

      Depreciation and  amortization

132,706

96,008

11,485

      Impairment of  intangible asset

225

-

-

      Cost of sales

351

113

8

      Selling, general  and administrative 

30,098

23,825

3,577

      Merger

357

2,087

17,457

163,737

122,033

32,527

LOSS FROM OPERATIONS

(25,545

)

(46,008

)

(13,517

)

Interest expense, net

(30,041

)

(29,018

)

(2,284

)

Foreign currency  exchange gains (losses)

(1,442

)

3,017

(102

)

Other income

39

39

12

Loss before income  taxes

(56,989

)

(71,970

)

(15,891

)

Provision (benefit) for  income taxes

(962

)

(9,668

)

452

NET LOSS

$

(56,027

)

$

(62,302

)

$

(16,343

)

The accompanying notes are an integral part ofthese condensed consolidated financial statements.
****
*(Index)*
******SEITEL, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OFCOMPREHENSIVE LOSS**(Unaudited)*(In thousands)*
SUCCESSOR

SUCCESSOR

PREDECESSOR 

PERIOD

PERIOD

PERIOD

Three Months Ended September 30,

Nine Months Ended

February 14, 2007 -

January 1, 2007 -

2008

2007

September 30, 2008

September 30, 2007

February 13, 2007

Net loss

$

(17,192

)

$

(23,225

)

$

(56,027

)

$

(62,302

)

$

(16,343

)

Unrealized losses on

   securities held as

   available for sale,	

   net of tax

(2,811

)

-

(2,426

)

-

-

Foreign currency

   translation adjustments

(6,809

)

11,723

(12,660

)

27,406

7

Comprehensive loss

$

(26,812

)

$

(11,502

)

$

(71,113

)

$

(34,896

)

$

(16,336

)

 

The accompanying notes are an integral part ofthese condensed consolidated financial statements.

*(Index)*
**SEITEL,INC. AND SUBSIDIARIES**
**CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDER'S EQUITY**(Unaudited)

(In thousands, except share amounts)

****

****

Accumulated 

Additional

Retained

Other 

Common Stock

Paid-In

Earnings

Comprehensive 

Shares

Amount

Capital

(Deficit)

Income 

Balance,  December 31, 2007

100

$

-

$

264,805

$

(77,113

)

$

33,266

   Issuance of  restricted

      stock  units

-

-

604

-

-

   Amortization  of stock-based 

      compensation  costs

-

-

4,332

-

-

   Accrual for  equity based

      incentive  compensation

-

-

36

-

-

   Net loss

-

-

-

(56,027

)

-

   Foreign  currency translation

      adjustments

-

-

-

-

(12,660

)

   Unrealized loss  on marketable

      securities,  net of tax

-

-

-

-

(2,426

)

Balance, September  30, 2008

100

$

-

$

269,777

$

(133,140

)

$

18,180

The accompanying notes are an integral part of these condensed consolidatedfinancial statements.
****
*(Index)*
****SEITEL, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**(Unaudited)

*(In thousands)*

 

 

SUCCESSOR

PREDECESSOR

PERIOD

PERIOD

Nine Months Ended

February 14, 2007 -

January 1, 2007 -

September 30, 2008

September 30, 2007

February 13, 2007

Cash flows from operating activities:

Reconciliation of net loss to net cash provided	

     by operating activities:

     Net loss

$

(56,027

)

$

(62,302

)

$

(16,343

)

     Depreciation and amortization

132,706

96,008

11,485

     Impairment of intangible asset

225

-

-

     Deferred income tax provision (benefit)

(2,702

)

(10,119

)

302

     Amortization of deferred financing costs

1,208

4,952

148

     Amortization of debt discount (premium)

(64

)

(51

)

70

     Amortization of stock-based compensation

4,332

5,954

6,673

     Amortization of favorable facility lease

210

166

-

     Allowance for collection of trade receivables

96

391

-

     Reversal of allowance for notes receivable

(54

)

-

(274

)

     Non-cash compensation expense

640

-

32

     Non-cash other income

(24

)

-

-

     Non-cash revenue

(14,441

)

(1,881

)

(88

)

     Decrease in receivables

372

7,124

9,074

     Decrease (increase) in other assets

273

(927

)

(521

)

     Increase (decrease) in deferred revenue

2,723

24,993

(7,767

)

     Increase (decrease) in accounts payable	

        and other liabilities

(10,375

)

(8,636

)

2,819

        Net cash provided by operating activities	

59,098

55,672

5,610

Cash flows from investing activities:

     Cash invested in seismic data	

(65,484

)

(40,619

)

(8,369

)

     Cash paid to acquire property and equipment

(910

)

(409

)

(60

)

     Advances to Seitel Holdings, Inc.

(135

)

-

-

     Increase in restricted cash

(2

)

(3

)

-

        Net cash used in investing activities	

(66,531

)

(41,031

)

(8,429

)

Cash flows from financing activities:

     Issuance of 9.75% Senior Notes

-

400,000

-

     Repayment of 11.75% Senior Notes

-

(233,352

)

-

     Contributed capital

-

153,473

-

     Purchase of Seitel stock

-

(386,556

)

-

     Principal payments on notes payable

(32

)

(27

)

(3

)

     Principal payments on capital lease obligations

(98

)

(62

)

(6

)

     Borrowings on line of credit

286

103

119

     Payments on line of credit

(286

)

(103

)

(119

)

     Cost of debt and equity transactions

-

(17,085

)

-

     Purchase of common stock subsequently retired

-

-

(400

)

     Payments on notes receivable	

54

274

-

        Net cash used in financing activities

$

(76

)

$

(83,335

)

$

(409

)

 

The accompanying notes are an integral part ofthese condensed consolidated financial statements.
****
*(Index)*
 
**SEITEL, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**(Unaudited)**- continued**

*(In thousands)*

**

SUCCESSOR

PREDECESSOR

PERIOD

PERIOD

Nine Months Ended

February 14, 2007 -

January 1, 2007 -

September 30, 2008

September 30, 2007

February 13, 2007

Effect of exchange rate changes 

$

1,004

$

(2,320

)

$

46

Net decrease in cash and equivalents

(6,505

)

(71,014

)

(3,182

)

Cash and cash equivalents at beginning of period

43,333

104,208

107,390

Cash and cash equivalents at end of period

$

36,828

$

33,194

$

104,208

Supplemental disclosure of cash flow information:

     Cash paid during the period for:

        Interest

$

39,615

$

21,661

$

11,207

        Income taxes

$

44

$

1,418

$

1

Supplemental schedule of non-cash

     investing activities:

     Additions to seismic data library

$

17,566

$

2,235

$

(7

)

The accompanying notes are an integral part ofthese condensed consolidated financial statements.
****
*(Index)*
 
**SEITEL, INC. AND SUBSIDIARIES****NOTES TO CONDENSED CONSOLIDATEDINTERIM FINANCIAL STATEMENTS (Unaudited)****September 30, 2008**

**NOTE A-ORGANIZATION**

****On February 14, 2007, Seitel AcquisitionCorp. ("Acquisition Corp.") was merged with and into Seitel, Inc. (the"Company"), pursuant to a merger agreement between the Company,Acquisition Corp. and Seitel Holdings, Inc. ("Holdings") datedOctober 31, 2006 (the "Merger").  Pursuant to the merger agreement,the Company continued as the surviving corporation and became a privately ownedcorporation and wholly-owned subsidiary of Holdings.  Holdings is an investmententity controlled by ValueAct Capital Master Fund, L.P. ("ValueAct Capital").

In connection with the Merger, Acquisition Corp. conducted a cash tender offerand consent solicitation for all of the $189.0 million aggregate principalamount of the Company's 11.75% senior notes due 2011 (the "11.75% SeniorNotes").  On February 14, 2007, the Company paid $187.0 million aggregateprincipal amount for all of the notes tendered.  Inconnection with the tender offer and consent solicitation, the Company enteredinto a supplemental indenture for the 11.75%Senior Notes. The supplemental indenture effected certain amendments to theoriginal indenture, primarily to eliminatesubstantially all of the restrictive covenants and certain events of defaulttriggered or implicated by the Merger.  $2.0 million aggregate principal amountof the 11.75% Senior Notes remains outstanding.

In addition, on February 14,2007, the Company issued $400.0 million aggregate principal amount of 9.75%senior notes due 2014 (the "9.75% Senior Notes") pursuant to anindenture by and among the Company, certain subsidiary guarantors and LaSalleBank National Association, as trustee.  

The Company also entered into an Amended andRestated Loan and Security Agreement with Wells Fargo Foothill, Inc. with amaximum credit amount of $25.0 million, subject to certain borrowing baselimitations. All obligations are unconditionally guaranteed by the Company'sdomestic subsidiaries that are not borrowers under the new facility, subject tocustomary exceptions, exclusions and releasemechanisms. The new facility is secured by a lien on substantially all of theCompany's domestic assets, including equity interests in the Company's U.S. subsidiaries.

Pursuant to the Merger, all of the Company's outstanding shares of common stock(other than shares owned by ValueAct Capital, which were contributed to Holdings,and certain shares owned by management investors, which were exchanged forownership in Holdings) were exchanged for $3.70 per share.  

**NOTE B-BASIS OF PRESENTATION**

The accompanying condensed consolidated financial statements of theCompany and its subsidiaries have been prepared in accordance with generallyaccepted accounting principles for interim financial information and with theinstructions of Regulation S-X.  Accordingly, they do not include all of theinformation and notes required by accounting principles generally accepted inthe United States for complete financial statements.  In the opinion ofmanagement, all adjustments (consisting of normal recurring adjustments)considered necessary for a fair presentation have been included.  In preparingthe Company's financial statements, a number of estimates and assumptions aremade by management that affect the accounting for and recognition of assets,liabilities, revenues and expenses.  Operating results for the three and ninemonths ended September 30, 2008 are not necessarily indicative of the resultsthat may be expected for the year ending December 31, 2008.  The condensedconsolidated balance sheet of the Company as of December 31, 2007 has beenderived from the audited balance sheet of the Company as of that date.  Thesefinancial statements should be read in conjunction with the financialstatements and notes thereto for the year ended December 31, 2007 contained inthe Company's Annual Report on Form 10-K.

Although the Company continues as thesame legal entity after the Merger, the consolidated financial statements for thefirst nine months of 2007 are presented for two periods:  January 1, 2007through February 13, 2007 (the "Predecessor Period" or "Predecessor,"as context requires), which relates to the period preceding the Merger andFebruary 14, 2007 through September 30,2007, which relates to the period succeeding the Merger.  All financialstatements for the periods succeeding the Merger are referred to as SuccessorPeriod or Successor, as context requires.  The consolidated financialstatements for the Successor Periods reflect the acquisition of the Companyunder the purchase method of accounting in accordance with Statement ofFinancial Accounting Standards ("SFAS") No. 141, "BusinessCombinations."  The results between these periods are not comparable tothe Predecessor due to the difference in the basis of presentation of purchaseaccounting as compared to historical cost.  

 
****
*(Index)*
NOTE C-REVENUE RECOGNITION*Revenue from Data Acquisition*
**The Company generates revenue when it creates a new seismic survey that isinitially licensed by one or more of its customers to use the resulting data. The initial licenses usually provide the customer with a limited exclusivityperiod, which will normally last for six months after final delivery of theprocessed data.  The payments for the initial exclusive licenses are sometimesreferred to as underwriting or prefunding.  Customers make periodic paymentsthroughout the creation period, which generally correspond to costs incurredand work performed.  These payments are non-refundable.

Revenue from the creation of new seismic data is recognized throughout thecreation period using the proportional performance method based upon costsincurred and work performed to date as a percentage of total estimated costsand work required.  Management believes that this method is the most reliableand representative measure of progress for its data creation projects.  Theduration of most data creation projects is generally less than one year.  Underthese contracts, the Company creates new seismic data designed in conjunctionwith its customers and specifically suited to the geology of the area using themost appropriate technology available. 

The Company outsources the substantial majority of the work required tocomplete data acquisition projects to third party contractors.  The Company'spayments to these third party contractors comprise the substantial majority ofthe total estimated costs of the project and are paid throughout the creationperiod.  A typical survey includes specific activities required to complete thesurvey, each of which has value to the customers.  Typical activities, thatoften occur concurrently, include: 
-  permitting for land access,mineral rights, and regulatory approval;
-  surveying;
-  drillingfor the placement of energy sources;
-  recordingthe data in the field; and
-  processingthe data.

The customers paying for the initial exclusive licenses receive legallyenforceable rights to any resulting product of each activity described above. The customers also receive access to and use of the newly acquired, processeddata.  

The customers' access to and use of the results of the work performed and ofthe newly acquired, processed data is governed by a license agreement, which isa separate agreement from the acquisition contract. The Company's acquisitioncontracts require the customer either to have a license agreement in place orto execute one at the time the acquisition contract is signed. The Companymaintains ownership of the newly acquired data, which is added to its library,and is free to license the data to other customers when the original customers'exclusivity period ends.  
*Revenue from Non-Exclusive Data Licenses*
**The Companyrecognizes a substantial portion of its revenue from data licenses sold afterany exclusive license period.  These are sometimes referred to as resalelicensing revenue, post acquisition license sales or shelf sales.

****These sales fall under the following four basic forms of non-exclusivelicense contracts.

 
-  Specific license contract - The customer licenses and selects data from     the data library at the time the contract is entered into and holds this     license for a long-term period.-  Library card license contract - The customer initially receives only     access to data. The customer may then select specific data, from the     collection of data to which it has access, to hold long-term under its     license agreement. The length of the selection periods under the library     card contracts is limited in time and varies from customer to customer.-  Review and possession license contract - The customer obtains the right to     review a certain quantity of data for a limited period of time. During the     review period, the customer may select specific data from that available     for review to hold long-term under its license agreement. Any data not     selected for long-term licensing must be returned to the Company at the     end of the review period.-  Review only license contract - The customer obtains rights to review a     certain quantity of data for a limited period of time, but does not obtain     the right to select specific data to hold long-term.****
*(Index)*

 

The Company's non-exclusive license contracts specify the following:
-  that all customers must also execute a master license agreement that governsthe use of all data received under our non-exclusive license contracts; 
-  the specific payment terms, generally ranging from 30 days to 12 months,and that such payments are non-cancelable and non-refundable;
-  the actual data that is accessible to the customer; and 
-  that the data is licensed in its present form, where is     and as is and the Company is under no obligation to make any enhancements,     modifications or additions to the data unless specific terms to the     contrary are included.  

Revenue from the non-exclusive licensing of seismic data is recognized when thefollowing criteria are met:
-  the Company has an arrangement with the customer	that is validated by a signed contract;
-  the sales price is fixed and determinable; 
-  collection is reasonably assured; 
-  the customer has selected the specific data or the contract hasexpired without full selection; and
-  the license term has begun.

Copies of the data are available to the customer immediately upon request.

For licenses that have been invoiced but have not met the aforementionedcriteria, the revenue is deferred along with the related direct costs(primarily sales commissions).  This normally occurs under the library card,review and possession or review only license contracts because the dataselection may occur over time.  Additionally, if the contract allows licensingof data that is not currently available or enhancements, modifications oradditions to the data are required per the contract, revenue is deferred untilsuch time that the data is available.
*Revenue from Non-Monetary Exchanges*
**In certain cases, the Company will take ownership of a customer's seismicdata or revenue interest (collectively referred to as "data") inexchange for a non-exclusive license to selected seismic data from theCompany's library.  In connection with specific data acquisition contracts, theCompany may choose to receive both cash and ownership of seismic data from thecustomer as consideration for the underwriting of new data acquisition.  Inaddition, the Company may receive advanced data processing services on selectedexisting data in exchange for a non-exclusive license to selected data from theCompany's library.  These exchanges are referred to as non-monetary exchanges. A non-monetary exchange for data always complies with the following criteria:
-  the data license deliveredis always distinct from the data received;
-  thecustomer forfeits ownership of its data; and
-  theCompany retains ownership of its data.

In non-monetary exchange transactions, the Company records a data library assetfor the seismic data received or processed at the time the contract is enteredinto or the data is completed, as applicable, and recognizes revenue on thetransaction in equal value in accordance with its policy on revenue from datalicenses, which is, when the data is selected by the customer, or revenue fromdata acquisition, as applicable.  The data license to the customer is in theform of one of the four basic forms of non-exclusive license contractsdiscussed above.  These transactions are valued at the fair value of the datareceived or delivered, whichever is more readily determinable.

*(Index)*

Fair value of the data exchanged is determined using a multi-step process asfollows.

 
-  First, the Company considers the value of the data or services received     from the customer. In determining the value of the data received, the     Company considers the age, quality, current demand and future     marketability of the data and, in the case of 3D seismic data, the cost     that would be required to create the data.  In addition, the Company     applies a maximum limitation on the value it assigns per square mile for the     data it receives based on relevant criteria.  In determining the value of     the services received, the Company considers the cost of such similar     services that it could obtain from a third party provider.-  Second, the Company determines the value of the license granted to the     customer.  The range of cash transactions by the Company for licenses of     similar data during the prior six months are evaluated to assist in this     determination. In evaluating the range of cash transactions, the Company     does not consider transactions that are disproportionately high or low.-  Third, the Company obtains concurrence from an independent third party on     the portfolio of all non-monetary exchanges for data of $500,000 or more     in order to support the Company's valuation of the data received.  The     Company obtains this concurrence on an annual basis, usually in connection     with the preparation of its annual financial statements.
Due to the Company's revenue recognition policies, revenue recognized onnon-monetary exchange transactions may not occur at the same time the seismicdata acquired is recorded as an asset.  The activity related to non-monetaryexchanges for the relevant periods was as follows (in thousands):

 

SUCCESSOR PERIOD

SUCCESSOR

PREDECESSOR

Three Months Ended 

PERIOD

PERIOD

September 30,

Nine Months Ended

February 14, 2007 -

January 1, 2007 -

2008

2007

September 30, 2008

September 30, 2007

February 13, 2007

Seismic data library 

   additions

$

3,825

$

73

$

17,566

$

2,235

$

(7

)

Revenue recognized 

   on specific data

   licenses and selections

   of data

2,029

126

4,766

1,208

71

Revenue recognized 

   related to

   acquisition  contracts

4,053

646

9,675

673

11

Revenue recognized 

   related to data

   management services

-

-

-

-

6
 *Revenue from Seitel Solutions*
**Revenue from Seitel Solutions ("Solutions")is recognized as the services for reproduction and delivery of seismic data areprovided to customers.

**NOTE D-SEISMIC DATA LIBRARY**

****The Company's seismic data library consists of seismic surveys thatare offered for license to customers on a non-exclusive basis. Costs associatedwith creating, acquiring or purchasing the seismic data library are capitalizedand amortized principally on the income forecast method subject to astraight-line amortization period of four years, applied on a quarterly basisat the individual survey level.  

***(Index)
**Costs of Seismic Data Library** **

For purchased seismic data, the Company capitalizes the purchase price of theacquired data.  

For data received through a non-monetary exchange, the Company capitalizes anamount equal to the fair value of the data received by the Company or the fairvalue of the license granted to the customer, whichever is more readilydeterminable.  See Note C under *"Revenue from Non-MonetaryExchanges"* for a discussion of the process used to determine fairvalue.

For internally created data, the capitalized costs include costs paid to thirdparties for the acquisition of data and related permitting, surveying and otheractivities associated with the data creation activity.  In addition, theCompany capitalizes certain internal costs related to processing the createddata.  Such costs include salaries and benefits of the Company's processingpersonnel and certain other costs incurred for the benefit of the processingactivity.  The Company believes that the internal processing costs capitalizedare not greater than, and generally are less than, those that would be incurredand capitalized if such activity were performed by a third party.  Capitalizedcosts for internal data processing were $484,000 and $506,000 for the threemonths ended September 30, 2008 and2007, respectively, and $1,425,000, $1,218,000 and $265,000 for the nine monthsended September 30, 2008 (SuccessorPeriod), for the period February 14, 2007 to September30, 2007 (Successor Period), and for the period January 1, 2007 toFebruary 13, 2007 (Predecessor Period), respectively.  

***Data Library Amortization***

The Company amortizes its seismic data library investment using the greater ofthe amortization that would result from the application of the income forecastmethod subject to a minimum amortization rate or a straight-line basis over theuseful life of the data.  With respect to each survey in the data library, the straight-linepolicy is applied from the time such survey is available for licensing tocustomers on a non-exclusive basis, since some data in the library may not belicensed until an exclusivity period (usually six months) has lapsed.

The Company applies the income forecast method by forecasting the ultimaterevenue expected to be derived from a particular data library component overthe estimated useful life of each survey comprising part of such component. This forecast is made by the Company annually and reviewed quarterly.  If,during any such review, the Company determines that the ultimate revenue for alibrary component is expected to be significantly different than the originalestimate of total revenue for such library component, the Company revises theamortization rate attributable to future revenue from each survey in suchcomponent.  The lowest amortization rate the Company applies using the incomeforecast method is 70%.  In addition, in connection with the forecast reviewsand updates, the Company evaluates the recoverability of its seismic datalibrary investment, and if required under SFAS No. 144, "Accounting forthe Impairment and Disposal of Long-Lived Assets," records an impairmentcharge with respect to such investment.  See discussion on *"SeismicData Library Impairment"* below.

The actual aggregate rate of amortization depends on the specific seismic surveyslicensed and selected by the Company's customers during the period and theamount of straight-line amortization recorded.  The income forecastamortization rates can vary by component and, as of October 1, 2008, theamortization rate utilized under the income forecast method for all componentsis 70%.  For those seismic surveys which have been fully amortized, noamortization expense is required on revenue recorded.

The greater of the income forecast or straight-line amortization policy isapplied quarterly on a cumulative basis at the individual survey level. Inconnection with the Merger, this policy was also applied at February 13, 2007for the Predecessor Period.  Under this policy, the Company first recordsamortization using the income forecast method.  The cumulative amortizationrecorded for each survey is then compared with the cumulative straight-lineamortization. If the cumulative straight-line amortization is higher for anyspecific survey, additional amortization expense is recorded, resulting inaccumulated amortization being equal to the cumulative straight-lineamortization for such survey.  This requirement is applied regardless offuture-year revenue estimates for the library component of which the survey isa part and does not consider the existence of deferred revenue with respect tothe library component or to any survey.  

 
****
*(Index)*

 

***Seismic Data Library Impairment***

******The Company evaluates its seismic data library investment by groupingindividual surveys into components based on its operations and geological andgeographical trends, resulting in the following data library segments forpurposes of evaluating impairments:  (I) Gulf of Mexico offshore comprised ofthe following components:  (a) multi-component data, (b) ocean bottom cabledata, (c) shelf data, (d) deep water data, and (e) value-added products; (II)North America onshore comprised of the following components: (a) Texas GulfCoast, (b) Northern, Eastern and Western Texas, (c) SouthernLouisiana/Mississippi, (d) Northern Louisiana, (e) Rocky Mountains, (f) NorthDakota, (g) other United States, (h) Canada and (i) value-added products; and(III) international data outside North America.  The Company believes thatthese library components constitute the lowest levels of independently identifiablecash flows.

As events or conditions require, the Company evaluates the recoverability ofits seismic data library investment in accordance with SFAS No. 144.  TheCompany evaluates its seismic data library investment for impairment wheneverevents or changes in circumstances indicate that the carrying amounts may notbe recoverable.  The Company considers the level of sales performance in eachcomponent compared to projected sales, as well as industry conditions, amongothers, to be key factors in determining when its seismic data investmentshould be evaluated for impairment.  In evaluating sales performance of eachcomponent, the Company generally considers five consecutive quarters of actualperformance below forecasted sales to be an indicator of potential impairment.

****In accordance with SFAS No. 144, the impairment evaluation is based firston a comparison of the undiscounted future cash flows over each component'sremaining estimated useful life with the carrying value of each library component. If the undiscounted cash flows are equal to or greater than the carrying valueof such component, no impairment is recorded.  If undiscounted cash flows areless than the carrying value of any component, the forecast of future cashflows related to such component is discounted to fair value and compared withsuch component's carrying amount. The difference between the librarycomponent's carrying amount and the discounted future value of the expectedrevenue stream is recorded as an impairment charge.

For purposes of evaluating potential impairment losses, the Company estimatesthe future cash flows attributable to a library component by evaluating, amongother factors, historical and recent revenue trends, oil and gas prospectivityin particular regions, general economic conditions affecting its customer base,expected changes in technology and other factors that the Company deemsrelevant. The cash flow estimates exclude expected future revenues attributableto non-monetary data exchanges and future data creation projects.

The estimation of future cash flows and fair value is highly subjective andinherently imprecise.  Estimates can change materially from period to periodbased on many factors, including those described in the preceding paragraph. Accordingly,if conditions change in the future, the Company may record impairment lossesrelative to its seismic data library investment, which could be material to anyparticular reporting period.

The Company did not haveany impairment charges during the nine monthsended September 30, 2008 (SuccessorPeriod), for the period February 14,2007 to September 30, 2007 (SuccessorPeriod) or for the period January 1, 2007 to February 13, 2007 (Predecessor Period).

**NOTE E-IMPAIRMENT OF INTANGIBLE ASSET**

****During the three and nine months ended September 30, 2008, the Companyrecorded an impairment charge of $225,000 related to the customer relationshipintangible asset that resulted from the Company's October 2007 purchase of asmall data fulfillment company in Canada.  The impairment was necessary as aresult of the loss of significant customer business and current-period andprojected operating losses associated with the customer relationship intangibleasset.  The impairment was determined by comparing estimated future cash flowsattributable to the customer relationship to the carrying value of the asset inaccordance with SFAS No. 144.  The resulting impairment reduced the customerrelationship intangible asset to $0.

*****
(Index)
****NOTE F-DEBT**

 

The following is a summary of the Company's debt (in thousands):

 

September 30,

December 31,

2008

2007

9.75% Senior  Notes

$

400,000

$

400,000

11.75% Senior  Notes

2,000

2,000

Revolving  Credit Facility

-

-

Subsidiary  revolving line of credit

-

-

Note payable  to former executive

268

300

402,268

402,300

Plus:   Premium on debt

269

333

$

402,537

$

402,633

 

**9.75% Senior Unsecured Notes:** On February 14, 2007, the Company issued in a private placement $400.0 millionaggregate principal amount of 9.75% Senior Notes.  The proceeds from the9.75% Senior Notes were used to partially fund the transactions in connectionwith the Merger.  As required by their terms, the 9.75% Senior Notes wereexchanged for senior notes of like amounts and terms in a registered exchangeoffer in August 2007.  These notes mature on February 15, 2014. Interest is payable in cash, semi-annually in arrears on February 15 and August15 of each year.  The 9.75% Senior Notes are unsecured and are guaranteedby substantially all of the Company's domestic subsidiaries on a senior basis.The 9.75% Senior Notes contain restrictive covenants which limit the Company'sability to, among other things, incur additional indebtedness, pay dividends andcomplete certain mergers, acquisitions and sales of assets. 

 

From time to time on or before February 15, 2010, theCompany may redeem up to 35% of the aggregate principal amount of the 9.75%Senior Notes with the net proceeds of equity offerings at a redemption priceequal to 109.75% of the principal amount, plus accrued and unpaid interest. Upon a change of control (as defined in the indenture), each holder of the9.75% Senior Notes will have the right to require the Company to offer topurchase all of such holder's notes at a price equal to 101% of the principalamount, plus accrued and unpaid interest.

**11.75% Senior Unsecured Notes: **On July 2, 2004, the Company issued in a privateplacement $193.0 million aggregate principal amount of 11.75% Senior Notes.  Asrequired by their terms, the 11.75% Senior Notes were exchanged for seniornotes of like amounts and terms in a registered exchange offer in February2005.  In connection with the 2004 excess cash flow offer in March 2005, $4.0million aggregate principal amount of these notes was tendered and accepted. In connection with the Merger and related transactions, $187.0 millionaggregate principal amount of these notes was tendered and accepted on February14, 2007.  The fair value of these notes was higher than the face value on thedate of the Merger and consequently, a premium has been reflected in theSuccessor financial statements related to these notes.  Interest on theremaining notes is payable semi-annually in arrears on January 15 and July 15of each year.  The remaining $2.0 million of notes mature on July 15, 2011. The 11.75% Senior Notes are unsecured and are guaranteed by substantially allof the Company's U.S. subsidiaries on a senior basis.

As a result of the tender and consent offer, effective February 14, 2007, the11.75% Senior Notes no longer contain any restrictive covenants, other than therequirement to make excess cash flow offers.  Subject to certain conditions, ifat the end of each fiscal year the Company has excess cash flow (as defined inthe indenture) in excess of $5.0 million, the Company is required to use 50% ofthe excess cash flow to fund an offer to repurchase the 11.75% Senior Notes ona pro rata basis at 100% of its principal amount, plus accrued and unpaidinterest.  If the Company has less than $5.0 million in excess cash flow at theend of any fiscal year, such excess cash flow will be carried forward tosucceeding years, and such repurchase offer is required to be made in the firstyear in which the cumulative excess cash flow for all years in which there hasnot been an offer is at least $5.0 million.  A repurchase offer is requiredonly if there is no event of default under the Company's revolving creditfacilities prior to and after giving effect to any repurchases.  The Company wasnot required to make an excess cash flow offer for the year ended December 31, 2007. Upon a change of control (as defined in the indenture), each holder of the11.75% Senior Notes will have the right to require the Company to offer topurchase all of such holder's notes at a price equal to 101% of the principalamount, plus accrued and unpaid interest.

 
****
*(Index)*

 

**Revolving Credit Facility: **On February 14, 2007, the Company enteredinto an amended and restated U.S. revolving credit facility with Wells FargoFoothill, Inc., as lender, which provides for up to $25.0 million, subject toborrowing base limitations.  Interest is payable at an applicable margin aboveeither LIBOR or the prime rate.  The facility is secured by a first priority,perfected security interest on substantially all of the Company's U.S. assets and a pledge of all of the issued and outstanding capital stock of the Company's U.S. subsidiaries.  The facility expires on February 14, 2010.  The revolving creditfacility contains covenants requiring the Company to achieve and maintaincertain financial results and restricts, among other things, the amount ofcapital expenditures, the ability to incur additional indebtedness, paydividends, and complete certain mergers, acquisitions and sales of assets.  Therevolving credit facility requires the payment of an unused line fee of .25%per annum payable in arrears.

**Subsidiary Revolving****Line of Credit:  **The Company's wholly-ownedsubsidiary, Olympic Seismic Ltd. ("Olympic") has a revolving creditfacility, which allows it to borrow up to $5.0 million (Canadian), subject toan availability formula, by way of prime-based loans or letters of credit. Theinterest rate applicable to borrowings is the bank's prime rate plus 0.35% perannum.  Letter of credit fees are based on scheduled rates in effect at thetime of issuance. The facility is secured by the assets of Olympic, but is notguaranteed by the Company or any of its other U.S. subsidiaries.  Availableborrowings under the facility are equivalent to a maximum of $5.0 million(Canadian), subject to a requirement that the borrowings may not exceed 75% ofgood accounts receivable (as defined in the agreement) of Olympic, lessprior-ranking claims, if any, relating to inventory or accounts. The facilityis subject to repayment upon demand and is available from time to time at thebank's sole discretion.

**Note Payable to Former Executive: **In connection with the settlement ofcertain litigation, the Company entered into a note payable to a formerexecutive with remaining payments of $6,000 per month until May 2013.  The noteis non-interest bearing.  The note is guaranteed by Olympic.  

**NOTE G-INCOME TAXES**

****The following is the detail of income tax expense (benefit) recorded forthe three and nine months ended September 30, 2008 (in thousands):

 

* *

Three Months Ended

Nine Months Ended

September 30, 2008

September 30, 2008

Tax expense (benefit) resulting from:

     Current operations

$

(6,168

)

$

(15,996

)

     Change in valuation allowance

5,016

15,034

$

(1,152

)

$

(962

)

 

For the three and nine months ended September 30, 2008, theCompany continued to provide a full valuation allowance against the Federal taxbenefit generated from its U.S. operations  as it was more likely than not thatsuch benefit would not be realized.  For the same period, the Company hasrecognized the tax benefits generated from its Canadian operations.  Offsettingthe Canadian tax benefits in the first nine months of 2008 was an additionalreserve, penalties and interest totaling $2.7 million on uncertain taxpositions.  Additionally, in the third quarter of 2008, the Company recorded atax benefit of $0.8 million related to certain research and development taxcredits received in Canada.

**NOTE H-STOCK BASED COMPENSATION**

****In connection with the Merger and to appropriately account for theelimination of equity-based compensation under the Company's incentive planthat existed prior to the Merger, Holdings, the Company's parent, adopted astock-based compensation plan (the "2007 Non-Qualified Stock OptionPlan") in order to provide an equity component to management compensationfollowing the Merger.  The 2007 Non-Qualified Stock Option Plan becameeffective February 14, 2007.  The board of directors of Holdings, which administersthe 2007 Non-Qualified Stock Option Plan, may issue options to purchase up to105,200 shares of Holdings' common stock to employees, directors and otherservice providers of Holdings and its subsidiaries, including the Company,under the 2007 Non-Qualified Stock Option Plan.  In April 2008, Holdings adoptedthe 2008 Restricted Stock and Restricted Stock Unit Plan which is designed toprovide incentives to present and future employees of the Company through thegrant of restricted stock and restricted stock unit awards. The 2008 RestrictedStock and Restricted Stock Unit Plan authorizes the issuance of up to 25,000shares of Holdings' common stock pursuant to such grants.  The Company accountsfor grants of its stock options, restricted stock and restricted stock units inaccordance with SFAS 123(R), "Share Based Payment."

 
****
*(Index)*

 

During the nine months ended September 30,2008, 2,341 restricted stock units with a fair value of $604,000 and 14,145 stockoptions with a fair value of $2.8 million were granted. The restricted stockunits vested immediately, whereas the stock options contain continuedemployment requirements and vest ratably over a period of four years from dateof grant and expire 10 years after the date of grant.  In addition, a portionof incentive compensation for 2008 is expected to be paid in equity awardswhich resulted in a non-cash expense of $36,000 for the nine months endedSeptember 30, 2008.  Total share-based compensation cost that has beenrecognized in the Company's Statements of Operations was $1.6 million and $2.4 millionfor the three months ended September 30,2008 and 2007, respectively, and $5.0 million, $6.0 million and $6.7 millionfor the nine months ended September 30,2008 (Successor Period), for the period from February 14, 2007 to September 30, 2007 (Successor Period), andfor the period from January 1, 2007 to February 13, 2007 (Predecessor Period),respectively.  Included in the $6.7 million share-based compensation cost forthe Predecessor Period was $6.3 million related to the accelerated vesting ofall outstanding unvested restricted stock as a result of the Merger and changein control of the Company which was included in merger expenses in the Company'sStatement of Operations.  The Company has not recognized any tax benefitsrelated to stock based compensation for the three and nine months ended September 30, 2008, the period fromFebruary 14, 2007 to September 30,2007 (Successor Period), or for the period from January 1, 2007 to February 13,2007 (Predecessor Period).  As of September 30,2008, the total future compensation cost related to non-vested options not yetrecognized in the Company's Statement of Operations was $7.9 million and willbe recognized using graded vesting over a weighted average period of 2.6 years.

**NOTE I-FAIR VALUE MEASUREMENTS**

****Effective January 1, 2008, the Company adopted SFAS No. 157, "FairValue Measurements" for recurring financial assets and liabilities carriedat fair value.  The adoption of SFAS No. 157 had no impact on the Company's consolidatedresults of operations, cash flows or financial position.

SFAS No. 157 provides a framework for measuring fair value and establishes afair value hierarchy that prioritizes the inputs used to measure fair value,giving the highest priority to unadjusted quoted prices in active markets foridentical assets or liabilities (Level 1 inputs) and the lowest priority tounobservable inputs (Level 3 inputs).  

The Company uses valuation techniques that maximize the use of observableinputs and minimize the use of unobservable inputs. In measuring the fair valueof the Company's assets and liabilities, market data or assumptions are usedthat the Company believes market participants would use in pricing an asset orliability, including assumptions about risk when appropriate. The Company's investmentin marketable securities is the only balance that is measured at fair value ona recurring basis.  As of September30, 2008, the fair value was $1.8 million, which was determined using significantother observable inputs (Level 2 inputs).  

**NOTE J-STATEMENT OF CASH FLOW INFORMATION**

****

The Company had restricted cash at September 30, 2008 and December 31, 2007 of $112,000 and $110,000,respectively, related to collateral on a seismic operations bond.

*(Index)*
The Company had non-cash additions to its seismic datalibrary comprised of the following for the periods indicated (in thousands): 
SUCCESSOR

PREDECESSOR 

PERIOD

PERIOD

Nine Months Ended

February 14, 2007- 

January 1, 2007-

September 30, 2008

September 30, 2007

February 13, 2007

Non-monetary exchanges  related to resale

      licensing revenue

$

8,682

$

2,873

$

(7

)

Non-monetary exchanges  from underwriting

      of new data  acquisition

9,681

-

-

Other non-monetary  exchanges

24

-

-

Completion of data in  progress from prior

      non-monetary  exchanges

1,779

600

-

Less:  Non-monetary  exchanges

      for data in  progress

(2,600

)

(1,238

)

-

Total non-cash  additions to seismic data library

$

17,566

$

2,235

$

(7

)

 
 

Non-cash revenue consistedof the following for the periods indicated (in thousands):

 

SUCCESSOR

PREDECESSOR 

PERIOD

PERIOD

Nine Months Ended

February 14, 2007- 

January 1, 2007-

September 30, 2008

September 30,2007

February 13, 2007

Acquisition revenue on underwriting from	

      non-monetary exchange contracts

$

9,675

$

673

$

11

Licensing revenue from specific data licenses	

      and selections on non-monetary

      exchange contracts

4,766

1,208

71

Data management revenue

-

-

6

Total non-cash revenue

$

14,441

$

1,881

$

88

 

**NOTE K-COMMITMENTS AND CONTINGENCIES**
*Litigation*
**The Company is involved from time to time in ordinary, routine claims andlawsuits incidental to its business. In the opinion of management, losses, ifany, resulting from the ultimate resolutions of these matters should not bematerial to the Company's financial position or results of operation.  However,it is not possible to predict or determine the outcomes of the legal actionsbrought against it or by it, or to provide an estimate of all additionallosses, if any, that may arise. At September30, 2008, the Company did not have any amounts accrued related to litigationand claims, as the Company believes it is not probable that any amounts will bepaid relative to such litigation and claims.  

**NOTE L-RECENT ACCOUNTING PRONOUNCEMENTS**

****In May 2008, the FASB issued SFAS No. 162, "The Hierarchy of GenerallyAccepted Accounting Principles." This Statement identifies the sources ofaccounting principles and the framework for selecting the principles to be usedin the preparation of financial statements of nongovernmental entities that arepresented in conformity with generally accepted accounting principles in the United States. This Statement is effective 60 days following the Securities and ExchangeCommission's approval of the Public Company Accounting Oversight Boardamendments to AU Section 411, *The Meaning of Present Fairly inConformity With Generally Accepted Accounting Principles*. The Company doesnot expect the adoption of SFAS No. 162 to have a material effect on itsresults of operations or financial condition.

 
****
*(Index)*

 

In February 2008, the Financial AccountingStandards Board ("FASB") issued Staff Position ("FSP") FAS157-2, "Effective Date of FASB Statement No. 157," which delayed theeffective date of SFAS No. 157 for all non-financial assets and non-financialliabilities, except those that are measured at fair value on a recurring basis.FSP FAS 157-2 establishes January 1, 2009 as the effective date of SFAS No. 157with respect to these fair value measurements for the Company. The Company doesnot currently expect the application of the fair value framework established bySFAS No. 157 to non-financial assets and liabilities measured on anon-recurring basis to have a material impact on its consolidated financialstatements. However, we will continue to assess the potential effects of SFASNo. 157 as additional guidance becomes available.

In December 2007, the FASB issuedSFAS No. 141(R), "Business Combinations," which replaces SFASNo. 141*.*SFAS No. 141(R) establishes principles andrequirements for how the acquirer in a business combination recognizes andmeasures in its financial statements the identifiable assets acquired, theliabilities assumed, and any noncontrolling interest in the acquiree. Inaddition, SFAS No. 141(R) recognizes and measures the goodwill acquired ina business combination or a gain from a bargain purchase. SFAS No. 141(R)also establishes disclosure requirements to enable users to evaluate the natureand financial effects of a business combination. SFAS No. 141(R) iseffective as of the beginning of an entity's fiscal year that begins afterDecember 15, 2008, with early adoption prohibited. The Company will applythe standard prospectively to future business combinations with an acquisitiondate on or after January 1, 2009.
**NOTE M-SUPPLEMENTAL GUARANTORS CONSOLIDATING CONDENSED FINANCIAL INFORMATION**
****On February 14, 2007, the Company completed a private placement of 9.75%Senior Notes in the aggregate principal amount of $400.0 million. Seitel,Inc.'s (the "Parent") payment obligations under the 9.75% SeniorNotes are jointly and severally guaranteed by certain of its domesticsubsidiaries ("Guarantor Subsidiaries"). All subsidiaries of Seitel,Inc. that do not guaranty the 9.75% Senior Notes are referred to asNon-Guarantor Subsidiaries. 

The consolidating condensed financial statements are presented below and shouldbe read in connection with the Consolidated Financial Statements of theCompany. Separate financial statements of the Guarantor Subsidiaries are notpresented because (i) the Guarantor Subsidiaries are wholly-owned and havefully and unconditionally guaranteed the 9.75% Senior Notes on a joint andseveral basis, and (ii) the Company's management has determined such separatefinancial statements are not material to investors. 

The following consolidating condensed financial information presents: theconsolidating condensed balance sheets as of September30, 2008 (Successor Period) and December 31, 2007 (Successor Period),and the consolidating condensed statements of operations and statements of cashflows for the nine months ended September 30,2008 (Successor Period), the period February 14, 2007 to September 30, 2007 (Successor Period) and theperiod January 1, 2007 to February 13, 2007 (Predecessor Period) of (a) the Parent;(b) the Guarantor Subsidiaries; (c) the Non-Guarantor Subsidiaries; (d)elimination entries; and (e) the Parent, the Guarantor Subsidiaries and theNon-Guarantor Subsidiaries on a consolidated basis. 

Investments in subsidiaries are accounted for on the equity method. Theprincipal elimination entries eliminate investments in subsidiaries,intercompany balances, intercompany transactions and intercompany sales. 

 
****
*(Index)*
 
**CONSOLIDATINGCONDENSED BALANCE SHEET**

**SUCCESSOR PERIOD**

**As of September30, 2008**

(In thousands)

** **

** **

** **

** **

** **

** **

** **

** **

**Non-**

** **

** **

** **

** **

** **

** **

** **

** **

** **

** **

** **

**Guarantor**

** **

** **

**Guarantor**

** **

** **

**Consolidating**

** **

** **

**Consolidated**

** **

** **

**Parent**

** **

** **

**Subsidiaries**

** **

** **

**Subsidiaries**

** **

** **

**Eliminations**

** **

** **

**Total**

** **

ASSETS

   Cash and cash  equivalents

$

-

$

26,296

$

10,532

$

-

$

36,828

   Restricted cash

-

112

-

-

112

   Receivables

      Trade, net

-

37,397

13,989

-

51,386

      Notes and other,  net

-

164

263

-

427

   Intercompany  receivables (payables)

155,439

(141,878

)

(13,561

)

-

-

   Investment in  subsidiaries

376,615

449,498

1,144

(827,257

)

-

   Net seismic data  library

-

214,517

82,952

-

297,469

   Net property and equipment

-

3,584

5,894

-

9,478

   Investment in  marketable securities

-

1,798

-

-

1,798

   Prepaid expenses,  deferred charges

      and other	

12,502

6,626

582

-

19,710

   Intangible assets,  net 

900

26,902

17,845

-

45,647

   Goodwill

-

107,108

93,350

-

200,458

   TOTAL ASSETS

$

545,456

$

732,124

$

212,990

$

(827,257

)

$

663,313

LIABILITIES AND  STOCKHOLDER'S

   EQUITY

   Accounts payable and  accrued liabilities

$

5,525

$

14,260

$

20,012

$

-

$

39,797

   Income taxes payable

753

5

234

-

992

   Senior Notes

402,269

-

-

-

402,269

   Notes payable

268

-

-

-

268

   Obligations under  capital leases

-

-

3,494

-

3,494

   Deferred revenue

-

41,475

9,414

-

50,889

   Deferred income  taxes

4

-

10,783

-

10,787

TOTAL LIABILITIES

408,819

55,740

43,937

-

508,496

STOCKHOLDER'S EQUITY

   Common stock

-

-

-

-

-

   Additional paid-in  capital

269,777

-

-

-

269,777

   Parent investment

-

764,753

172,172

(936,925

)

-

   Retained deficit

(133,140

)

(90,167

)

(19,501

)

109,668

(133,140

)

   Accumulated other  comprehensive income

-

1,798

16,382

-

18,180

TOTAL STOCKHOLDER'S  EQUITY

136,637

676,384

169,053

(827,257

)

154,817

TOTAL LIABILITIES AND

   STOCKHOLDER'S EQUITY  

$

545,456

$

732,124

$

212,990

$

(827,257

)

$

663,313

*(Index)*

**CONSOLIDATINGCONDENSED BALANCE SHEET**

**SUCCESSOR PERIOD**

**As of December 31,2007**

(In thousands)

 

** **

** **

** **

** **

** **

** **

** **

**Non-**

** **

** **

** **

** **

** **

** **

** **

** **

** **

** **

** **

**Guarantor**

** **

** **

**Guarantor**

** **

** **

**Consolidating**

** **

** **

**Consolidated**

** **

** **

**Parent**

** **

** **

**Subsidiaries**

** **

** **

**Subsidiaries**

** **

** **

**Eliminations**

** **

** **

**Total**

** **

ASSETS

   Cash and equivalents

$

-

$

36,847

$

6,486

$

-

$

43,333

   Restricted cash

-

110

-

-

110

   Receivables

      Trade, net

-

36,183

15,732

-

51,915

      Notes and other,  net

-

1,335

855

-

2,190

   Intercompany  receivables (payables)

174,299

(159,894

)

(14,405

)

-

-

   Investment in  subsidiaries

418,152

457,966

775

(876,893

)

-

   Net seismic data  library

-

243,957

105,082

-

349,039

   Net property and equipment

-

4,291

6,705

-

10,996

   Investment in  marketable securities

-

4,224

-

-

4,224

   Prepaid expenses,  deferred charges

      and other	

13,050

8,645

568

-

22,263

   Intangible assets,  net

923

29,310

21,552

-

51,785

   Goodwill

-

107,108

100,138

-

207,246

   TOTAL ASSETS

$

606,424

$

770,082

$

243,488

$

(876,893

)

$

743,101

LIABILITIES AND  STOCKHOLDER'S

   EQUITY

      Accounts payable  and accrued liabilities

$

15,374

$

18,792

$

15,159

$

-

$

49,325

      Income taxes  payable

721

209

18

-

948

      Senior Notes

402,333

-

-

-

402,333

      Notes payable

300

-

-

-

300

      Obligations under  capital leases

-

-

3,848

-

3,848

      Deferred revenue

-

34,823

13,328

-

48,151

      Deferred income  taxes

4

-

17,234

-

17,238

TOTAL LIABILITIES

418,732

53,824

49,587

-

522,143

STOCKHOLDER'S EQUITY

   Common stock

-

-

-

-

-

   Additional paid-in  capital

264,805

-

-

-

264,805

   Parent investment

-

764,762

172,172

(936,934

)

-

   Retained deficit

(77,113

)

(52,728

)

(7,313

)

60,041

(77,113

)

   Accumulated other  comprehensive

      income	

-

4,224

29,042

-

33,266

TOTAL STOCKHOLDER'S  EQUITY

187,692

716,258

193,901

(876,893

)

220,958

TOTAL LIABILITIES AND 

   STOCKHOLDER'S EQUITY  

$

606,424

$

770,082

$

243,488

$

(876,893

)

$

743,101

 
*(Index)*

**CONSOLIDATINGCONDENSED STATEMENT OF OPERATIONS**

**SUCCESSOR PERIOD**

**For the Nine MonthsEnded September 30, 2008**

(In thousands)

 

** **

** **

** **

** **

** **

** **

** **

** **

**Non-**

** **

** **

** **

** **

** **

** **

** **

** **

** **

** **

** **

**Guarantor**

** **

** **

**Guarantor**

** **

** **

**Consolidating**

** **

** **

**Consolidated**

** **

** **

**Parent**

** **

** **

**Subsidiaries**

** **

** **

**Subsidiaries**

** **

** **

**Eliminations**

** **

** **

**Total**

** **

REVENUE

$

-

$

92,950

$

49,128

$

(3,886

)

$

138,192

EXPENSES:

   Depreciation and  amortization

23

86,214

46,469

-

132,706

   Impairment of  intangible asset

-

-

225

-

225

   Cost of sales

-

312

39

-

351

   Selling, general and  administrative

4,947

15,321

13,716

(3,886

)

30,098

   Merger

-

357

-

-

357

4,970

102,204

60,449

(3,886

)

163,737

LOSS FROM OPERATIONS

(4,970

)

(9,254

)

(11,321

)

-

(25,545

)

Interest expense, net

(13,618

)

(15,708

)

(715

)

-

(30,041

)

Foreign currency  exchange losses

-

(123

)

(1,319

)

-

(1,442

)

Other income

-

15

24

-

39

Loss before income  taxes and 

   equity in loss of  subsidiaries 

(18,588

)

(25,070

)

(13,331

)

-

(56,989

)

Provision (benefit) for  income taxes

-

181

(1,143

)

-

(962

)

Equity in loss of  subsidiaries

(37,439

)

(12,188

)

-

49,627

-

NET LOSS

$

(56,027

)

$

(37,439

)

$

(12,188

)

$

49,627

$

(56,027

)

*(Index)*

**CONSOLIDATINGCONDENSED STATEMENT OF OPERATIONS**

**SUCCESSOR PERIOD**

**February 14, 2007- September 30, 2007**

 (In thousands)

** **

 

** **

** **

** **

** **

** **

** **

** **

**Non-**

** **

** **

** **

** **

** **

** **

** **

** **

** **

** **

** **

**Guarantor**

** **

** **

**Guarantor**

** **

** **

**Consolidating**

** **

** **

**Consolidated**

** **

** **

**Parent**

** **

** **

**Subsidiaries**

** **

** **

**Subsidiaries**

** **

** **

**Eliminations**

** **

** **

**Total**

** **

REVENUE

$

-

$

59,194

$

18,143

$

(1,312

)

$

76,025

EXPENSES:

   Depreciation and  amortization

113

71,455

24,440

-

96,008

   Cost of sales

-

86

27

-

113

   Selling, general and  administrative

6,570

10,463

8,104

(1,312

)

23,825

   Merger

-

2,053

34

-

2,087

6,683

84,057

32,605

(1,312

)

122,033

LOSS FROM OPERATIONS

(6,683

)

(24,863

)

(14,462

)

-

(46,008

)

Interest expense, net

(11,318

)

(16,996

)

(704

)

-

(29,018

)

Foreign currency  exchange gains 

-

-

3,017

-

3,017

Other income 

-

39

-

-

39

Loss before income  taxes and equity

   in loss of  subsidiaries 

(18,001

)

(41,820

)

(12,149

)

-

(71,970

)

Benefit for income  taxes

-

(3,975

)

(5,693

)

-

(9,668

)

Equity in loss of  subsidiaries

(44,301

)

(1,965

)

-

46,266

-

NET LOSS

$

(62,302

)

$

(39,810

)

$

(6,456

)

$

46,266

$

(62,302

)

*(Index)*

 

**CONSOLIDATINGCONDENSED STATEMENT OF OPERATIONS**

**PREDECESSOR PERIOD**

**January 1, 2007 -February 13, 2007**

(In thousands)

 

 

** **

** **

** **

** **

** **

** **

** **

** **

**Non-**

** **

** **

** **

** **

** **

** **

** **

** **

** **

** **

** **

**Guarantor**

** **

** **

**Guarantor**

** **

** **

**Consolidating**

** **

** **

**Consolidated**

** **

** **

**Parent**

** **

** **

**Subsidiaries**

** **

** **

**Subsidiaries**

** **

** **

**Eliminations**

** **

** **

**Total**

** **

REVENUE

$

-

$

13,346

$

6,055

$

(391

)

$

19,010

EXPENSES:

   Depreciation and  amortization

-

6,989

4,669

(173

)

11,485

   Cost of sales

-

7

1

-

8

   Selling, general and  administrative 

240

1,871

1,857

(391

)

3,577

   Merger

1,054

15,823

580

-

17,457

1,294

24,690

7,107

(564

)

32,527

LOSS FROM OPERATIONS

(1,294

)

(11,344

)

(1,052

)

173

(13,517

)

Interest expense, net

(236

)

(1,878

)

(170

)

-

(2,284

)

Foreign currency  exchange losses

-

-

(102

)

-

(102

)

Other income

12

-

-

-

12

Loss before income  taxes and equity

   in loss of  subsidiaries 

(1,518

)

(13,222

)

(1,324

)

173

(15,891

)

Provision for income  taxes

-

99

353

-

452

Equity in loss of  subsidiaries

(14,825

)

(1,677

)

-

16,502

-

NET LOSS

$

(16,343

)

$

(14,998

)

$

(1,677

)

$

16,675

$

(16,343

)

*(Index)*

**CONSOLIDATINGCONDENSED STATEMENT OF CASH FLOWS**

**SUCCESSOR PERIOD**

**For the Nine MonthsEnded September 30, 2008**

(In thousands)

** **

 

 

** **

** **

** **

** **

** **

** **

** **

**Non-**

** **

** **

** **

** **

** **

** **

** **

** **

** **

** **

** **

**Guarantor**

** **

** **

**Guarantor**

** **

** **

**Consolidating**

** **

** **

**Consolidated**

** **

** **

**Parent**

** **

** **

**Subsidiaries**

** **

** **

**Subsidiaries**

** **

** **

**Eliminations**

** **

** **

**Total**

** **

Cash flows  from operating activities:

            Net  cash provided by (used in) 

                         operating  activities 

$

(40,194

)

$

66,289

$

33,003

$

-

$

59,098

Cash flows from investing activities:

       Cash  invested in seismic data

-

(41,077

)

(24,407

)

-

(65,484

)

       Cash  paid to acquire property

            and  equipment

-

(419

)

(491

)

-

(910

)

       Advances  to Seitel Holdings, Inc.

-

(135

)

-

-

(135

)

       Increase  in restricted cash

-

(2

)

-

-

(2

)

       Net cash used in investing activities

-

(41,633

)

(24,898

)

-

(66,531

)

Cash flows from financing activities:

       Principal  payments on notes payable

(32

)

-

-

-

(32

)

       Principal  payments on capital

            lease  obligations

-

-

(98

)

-

(98

)

       Borrowings  on line of credit

-

-

286

-

286

       Payments  on line of credit

-

-

(286

)

-

(286

)

       Payments  on notes receivable

-

54

-

-

54

       Intercompany  transfers

40,226

(35,261

)

(4,965

)

-

-

            Net  cash provided by (used in) 

                        financing  activities

40,194

(35,207

)

(5,063

)

-

(76

)

Effect of  exchange rate changes

-

-

1,004

-

1,004

Net decrease  in cash and cash

       equivalents

-

(10,551

)

4,046

-

(6,505

)

Cash and cash  equivalents at

       beginning  of period

-

36,847

6,486

-

43,333

Cash and cash  equivalents at end of period

$

-

$

26,296

$

10,532

$

-

$

36,828

*(Index)*

**CONSOLIDATINGCONDENSED STATEMENT OF CASH FLOWS**

**SUCCESSOR PERIOD**

**February 14, 2007- September 30, 2007**

(In thousands)

 

** **

 

** **

** **

** **

** **

** **

** **

** **

**Non-**

** **

** **

** **

** **

** **

** **

** **

** **

** **

** **

** **

**Guarantor**

** **

** **

**Guarantor**

** **

** **

**Consolidating**

** **

** **

**Consolidated**

** **

** **

**Parent**

** **

** **

**Subsidiaries**

** **

** **

**Subsidiaries**

** **

** **

**Eliminations**

** **

** **

**Total**

** **

Cash flows  from operating activities:

            Net  cash provided by (used in) 

                        operating  activities 

$

(21,929

)

$

55,523

$

22,078

$

-

$

55,672

Cash flows from investing activities:

       Cash  invested in seismic data

-

(23,711

)

(16,908

)

-

(40,619

)

       Cash  paid to acquire property

            and  equipment

-

(361

)

(48

)

-

(409

)

       Increase  in restricted cash

-

(3

)

-

-

(3

)

       Net cash used in investing activities

-

(24,075

)

(16,956

)

-

(41,031

)

Cash flows from financing activities:

       Issuance  of 9.75% Senior Notes

400,000

-

-

-

400,000

       Repayment  of 11.75% Senior Notes

(233,352

)

-

-

-

(233,352

)

       Contributed  capital

153,473

-

-

-

153,473

       Purchase  of Seitel stock

(386,556

)

-

-

-

(386,556

)

       Principal  payments on notes payable

(27

)

-

-

-

(27

)

       Principal  payments on capital

            lease  obligations

-

-

(62

)

-

(62

)

       Borrowings  on line of credit

-

-

103

-

103

       Payments  on line of credit

-

-

(103

)

-

(103

)

       Cost  of debt and equity transactions

(17,085

)

-

-

-

(17,085

)

       Payments  on notes receivable

-

274

-

-

274

       Intercompany  transfers

105,476

(105,476

)

-

-

-

            Net  cash provided by (used in) 

                        financing  activities 

21,929

(105,202

)

(62

)

-

(83,335

)

Effect of  exchange rate changes

-

-

(2,320

)

-

(2,320

)

Net increase  (decrease) in cash

       and  cash equivalents

-

(73,754

)

2,740

-

(71,014

)

Cash and cash  equivalents at

       beginning  of period

-

102,788

1,420

-

104,208

Cash and cash  equivalents at end of period

$

-

$

29,034

$

4,160

$

-

$

33,194

*(Index)*

**CONSOLIDATINGCONDENSED STATEMENT OF CASH FLOWS**

**PREDECESSOR PERIOD**

**January 1, 2007 -February 13, 2007**

(In thousands)

 

 

** **

** **

** **

** **

** **

** **

** **

**Non-**

** **

** **

** **

** **

** **

** **

** **

** **

** **

** **

** **

**Guarantor**

** **

** **

**Guarantor**

** **

** **

**Consolidating**

** **

** **

**Consolidated**

** **

** **

**Parent**

** **

** **

**Subsidiaries**

** **

** **

**Subsidiaries**

** **

** **

**Eliminations**

** **

** **

**Total**

** **

Cash flows  from operating activities:

            Net  cash provided by (used in) 

                        operating  activities 

$

(11,821

)

$

19,894

$

(2,463

)

$

-

$

5,610

Cash flows from investing activities:

       Cash  invested in seismic data

-

(7,500

)

(869

)

-

(8,369

)

       Cash  paid to acquire property

            and  equipment

-

(27

)

(33

)

-

(60

)

       Net cash used in investing activities

-

(7,527

)

(902

)

-

(8,429

)

Cash flows from financing activities:

       Principal  payments on notes payable

(3

)

-

-

-

(3

)

       Principal  payments on capital

            lease  obligations

-

-

(6

)

-

(6

)

       Borrowings  on line of credit

-

-

119

-

119

       Payments  on line of credit

-

-

(119

)

-

(119

)

       Purchase  of common stock

            subsequently  retired

(400

)

-

-

-

(400

)

       Intercompany  transfers

12,224

(10,622

)

(1,602

)

-

-

            Net  cash provided by (used in) 

                        financing  activities 

11,821

(10,622

)

(1,608

)

-

(409

)

Effect of  exchange rate changes

-

-

46

-

46

Net increase  (decrease) in cash

       and  cash equivalents

-

1,745

(4,927

)

-

(3,182

)

Cash and cash  equivalents at

       beginning  of period

-

101,043

6,347

-

107,390

Cash and cash  equivalents at end of period

$

-

$

102,788

$

1,420

$

-

$

104,208

*(Index)*
**Item 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIALCONDITION AND RESULTS OF OPERATIONS**
*The following discussion should be read inconjunction with our consolidated financial statements and the related notes tothe financial statements included elsewhere in this document.*

**CAUTIONARY STATEMENTS CONCERNING FORWARD-LOOKING INFORMATION

This Quarterly Report on Form 10-Q (this "Quarterly Report") containsforward-looking statements within the meaning of Section 27A of the SecuritiesAct of 1933, as amended, and Section 21E of the Securities Exchange Act of1934, as amended (the "Exchange Act").  Statements contained in this reportabout our future outlook, prospects, strategies and plans, and about industryconditions, demand for seismic services and the future economic life of ourseismic data are forward-looking.  All statements that express belief,expectation, estimates or intentions, as well as those that are not statementsof historical fact, are forward looking. The words "proposed,""anticipates," "anticipated," "will,""would," "should," "estimates" and similarexpressions are intended to identify forward-looking statements. Forward-looking statements represent our present belief and are based on ourcurrent expectations and assumptions with respect to future events. While webelieve our expectations and assumptions are reasonable, they involve risks anduncertainties beyond our control that could cause the actual results or outcometo differ materially from the expected results or outcome reflected in ourforward-looking statements.  In light of these risks, uncertainties andassumptions, the forward-looking events discussed in this Quarterly Report maynot occur. Such risks and uncertainties include, without limitation, ourability to comply with the terms of our final judgment of permanent injunctionby the Securities and Exchange Commission ("SEC"), the impact on ourresults of operations of our significant amount of debt, our significant amountof debt service and interest expense, our ability to obtain and maintain normalterms with our vendors and service providers, our ability to maintain contractsthat are critical to our operations, changes in the oil and gas industry or theeconomy generally, changes in the exploration budgets of our customers, actualcustomer demand for our seismic data and related services, the timing andextent of changes in commodity prices for natural gas, crude oil and condensateand natural gas liquids, conditions in the capital markets during the periodscovered by the forward-looking statements and our ability to obtain financingon satisfactory terms if internally generated funds are insufficient to fundour capital needs.  The foregoing and other risk factors are identified in ourAnnual Report on Form 10-K filed with the SEC for the year endedDecember 31, 2007.  

The forward-looking statements contained inthis report speak only as of the date hereof.  Except as required by federaland state securities laws, we undertake no obligation to publicly update orrevise any forward-looking statements, whether as a result of new information,future events or any other reason.  All forward-looking statements attributableto Seitel, Inc. or any person acting on its behalf are expressly qualified intheir entirety by the cautionary statements contained or referred to in our AnnualReport filed on Form 10-K and in our future periodic reports filed with theSEC. 

**Overview**

***General***

******Our products and services areused by oil and gas companies to assist in the exploration for, and developmentand management of, oil and gas reserves.We have ownership in an extensive library of onshore and offshore seismic datathat we offer for license to oil and gas companies. Oil and gas companies useseismic data in oil and gas exploration and development efforts to increase theprobability of drilling success. We believe that our library of onshore seismicdata is one of the largest libraries available for licensing in the United States and Canada. We primarily generate revenue by licensing data from our data library andfrom new data creation products, which are substantially underwritten or paidfor by our clients.  By participating in underwritten, nonexclusive surveys orpurchasing licenses to existing data, oil and gas companies can obtain accessto surveys at reduced costs as compared to acquiring seismic data on aproprietary basis.

Our primary areas of focus are onshore United States and Canada and, to a lesser extent, offshore U.S. Gulf of Mexico.  These markets continue to experiencemajor changes.  Having spent several years increasing their focus oninternational exploration opportunities, several major oil companies havebecome more active in the U.S. market than in the past few years.  Independentoil and gas companies continue to be responsible for a significant portion ofcurrent U.S. drilling activity.  The energy industry remains challenged todevelop adequate oil and gas supplies to offset current production declines inmature fields of North America.  We expect demand for natural gas to continueto increase exploration activity over the next two to three years in the United States and Canada.

 
****
*(Index)*

 

Our clients continue to seek our services to create data in the United States and Canada.  Our clients' commitment for underwriting on new data creation projects was$32.1 million as of September 30, 2008.  Licensing data "off the shelf"does not require the longer planning and lead times like new data creation andthus is more likely to fluctuate quarter to quarter.

The current financial crisis has limited the credit markets which, in turn, mayeffect the level of capital spending by oil and gas companies.  As a result, wemay experience volatility in the level of our cash resales and in commitmentsby our clients for new data acquisition.  However, we believe we can respondquickly to changes in demand to ensure we operate within our cash flows.

***The Merger***

******On February 14, 2007, Seitel AcquisitionCorp. ("Acquisition Corp.") was merged with and into Seitel, Inc. ("Seitel"),pursuant to a merger agreement between Seitel, Acquisition Corp. and SeitelHoldings, Inc. ("Holdings") dated October 31, 2006 (the "Merger"). Pursuant to the merger agreement, Seitel continued as the surviving corporationand became a privately owned corporation and wholly-owned subsidiary ofHoldings.  

Although we continue as the same legal entity after the Merger, theconsolidated financial statements for the first nine months of 2007 arepresented for two periods:  January 1, 2007 through February 13, 2007 (the"Predecessor Period" or "Predecessor," as context requires), which relates tothe period preceding the Merger and February 14, 2007 through September 30, 2007, which relates to the period succeeding theMerger.  All financial statements for the periods succeeding the Merger arereferred to as Successor Period or Successor, as context requires.  Thecombined results for the nine months ended September 30,2007 represent the addition of Predecessor and 2007 Successor Periods("Combined").  This combination does not comply with U.S. GAAP orwith the rules for pro forma presentation but is presented because we believeit provides a meaningful comparison of our results.  The consolidated financialstatements for the Successor Periods reflect the acquisition of Seitel underthe purchase method of accounting in accordance with Statement of FinancialAccounting Standards ("SFAS") No. 141, "BusinessCombinations."  The results between these periods are not comparable tothe Predecessor due to the difference in the basis of presentation of purchaseaccounting as compared to historical cost.  

***Principal Factors Affecting OurBusiness***

******Ourbusiness is dependent upon a variety of factors, many of which are beyond ourcontrol. The following are those that we consider to be principal factorsaffecting our business.

**Demand for Seismic Data:**  Demand for our productsand services is cyclical due to the nature of the oil and gas industry.  Inparticular, demand for our seismic data services depends upon exploration,production, development and field management spending by oil and gas companiesand, in the case of new data creation, the willingness of those companies toforgo ownership in the seismic data. Capital expenditures by oil and gascompanies depend upon several factors, including actual and forecasted oil andnatural gas commodity prices, prospect availability and the companies' ownshort-term and strategic plans. These capital expenditures may also be affectedby worldwide economic or industry-wide conditions. Demand for our seismic datais more likely to be influenced by natural gas prices rather than crude oilprices due to the geographic location of our seismic data. 

**Availability of Capital for Our Customers:**  Manyof our customers consist of independent oil and gas companies and privateprospect-generating companies that rely primarily on private capital markets tofund their exploration, production, development and field managementactivities. The recent changes in the availability of capital could have amaterial impact on the ability of these companies to obtain funding necessaryto purchase our seismic data.

**Merger and Acquisition Activity:** In recentyears, there has been an increase in the level of merger and acquisitionactivity within our client base. This activity could have a negative impact onseismic companies that operate in markets with a limited number ofparticipating clients. However, we believe that, over time, this activity couldhave a positive impact on our business, as it should generate re-licensingfees, result in increased vitality in the trading of mineral interests andresult in the creation of new independent customers through the rationalizationof staff within those companies affected by this activity.

 
****
*(Index)*

**Natural Gas Reserve Replacement:**  Gas reservereplacement in the United States and Canada has lagged.  As a result, webelieve there is an increasing need in the oil and gas industry to replacethese reserves, which we anticipate will increase the demand for our seismicdata.

**Government Regulation:**  Our operations aresubject to a variety of federal, provincial, state, foreign and local laws andregulations, including environmental and health and safety laws. We investfinancial and managerial resources to comply with these laws and related permitrequirements. Modification of existing laws or regulations and the adoption ofnew laws or regulations limiting or increasing exploration or productionactivities by oil and gas companies may have a material effect on our businessoperations.

**Non-GAAP Key Performance Measures**

****Managementconsiders certain performance measures in evaluating and managing our financialcondition and operating performance at various times and from time to time. Someof these performance measures are non-GAAP financial measures. Generally, anon-GAAP financial measure is a numerical measure of a company's performance,financial position or cash flows that either excludes or includes amounts thatare not normally excluded or included in the most directly comparable measurecalculated and presented in accordance with United States generally acceptedaccounting principles, or GAAP. These non-GAAP measures are not in accordance with,nor are they a substitute for, GAAP measures. These non-GAAP measures areintended to supplement our presentation of our financial results that areprepared in accordance with GAAP.

The following are the key performance measuresconsidered by management.

**Cash Resales: **Cash resales represent newcontracts for data licenses from our library, payable in cash.  We believe thismeasure is important in gauging new business activity.  We expect cash resalesto generally follow a consistent trend over several quarters, while consideringour normal seasonality. Volatility in this trend over several consecutivequarters could indicate changing market conditions.  The following is areconciliation of this non-GAAP financial measure to the most directly comparableGAAP financial measure, total revenue (in thousands):

 

SUCCESSOR

SUCCESSOR

PREDECESSOR

PERIOD

COMBINED (1)

PERIOD

PERIOD

Three Months

Nine Months

Nine Months

February 14,

January 1,

Ended

Ended

Ended

2007 -

2007 -

September 30,

September 30,

September 30,

September 30,

February 13,

2008

2007

2008

2007

2007

2007

Cash resales

$

37,297

$

29,162

$

89,802

$

78,668

$

72,683

$

5,985

Other revenue

   components:

      Acquisition revenue

11,598

8,511

42,547

29,805

23,707

6,098

      Non-monetary

         exchanges

2,202

135

6,659

2,866

2,873

(7

)

   Revenue deferred

(16,612

)

(15,984

)

(41,675

)

(39,938

)

(37,302

)

(2,636

)

   Recognition of revenue

      previously deferred

10,114

5,327

35,723

19,786

10,840

8,946

   Solutions and other

1,492

1,205

5,136

3,848

3,224

624

Total revenue, as

   reported

$

46,091

$

28,356

$

138,192

$

95,035

$

76,025

$

19,010

 

(1)

		Our combined results for the nine months ended September 30, 2007		represent the addition of the Predecessor Period from January 1, 2007 to		February 13, 2007 and the Successor Period from February 14, 2007 to		September 30, 2007.  This combination does not comply with U.S.		GAAP or with the rules for pro forma presentation, but is presented		because we believe it provides a meaningful comparison of our results.
 
****
*(Index)*
**Cash EBITDA:  Cash EBITDA (which we have previously referred to ascash margin) includes cash resales plus all other cash revenues other than fromdata acquisitions, less cash selling, general and administrative expenses (excludingMerger expenses and merger and acquisition transaction costs) and cost of goodssold.  We believe this measure is helpful in determining the level of cash fromoperations we have available for debt service and funding of capitalexpenditures (net of the portion funded or underwritten by our customers).  Thefollowing is a quantitative reconciliation of this non-GAAP financial measureto the most directly comparable GAAP financial measure, operating loss (inthousands):

 

SUCCESSOR

SUCCESSOR

PREDECESSOR

PERIOD

COMBINED (1)

PERIOD

PERIOD

Three Months

Nine Months

Nine Months

February 14,

January 1,

Ended

Ended

Ended

2007 -

2007 -

September 30,

September 30,

September 30,

September 30,

February 13,

2008

2007

2008

2007

2007

2007

Cash  EBITDA 

$

30,529

$

23,816

$

69,632

$

62,466

$

59,036

$

3,430

Add  (subtract) other 

      revenue  components

      not  included in

      cash  EBITDA:

         Acquisition  revenue

11,598

8,511

42,547

29,805

23,707

6,098

         Non-monetary

            exchanges

2,202

135

6,659

2,866

2,873

(7

)

         Revenue  deferred

(16,612

)

(15,984

)

(41,675

)

(39,938

)

(37,302

)

(2,636

)

         Recognition  of

            revenue  previously

            deferred

10,114

5,327

35,723

19,786

10,840

8,946

         Recognition  of 

            Solutions  revenue 

            previously  deferred

-

-

44

6

-

6

Less:

      Depreciation ad

         amortization

(43,592

)

(36,005

)

(132,706

)

(107,493

)

(96,008

)

(11,485

)

      Impairment of

         intangible asset

(225

)

-

(225

)

-

-

-

      Merger expenses

-

(807

)

(357

)

(19,544

)

(2,087

)

(17,457

)

      Merger and acquisition

         transaction costs

-

(948

)

(5

)

(948

)

(948

)

-

      Non-cash operating

         expenses

(1,662

)

(2,475

)

(5,182

)

(6,531

)

(6,119

)

(412

)

   Operating loss,

      as reported

$

(7,648

)

$

(18,430

)

$

(25,545

)

$

(59,525

)

$

(46,008

)

$

(13,517

)

 

(1)

		Our combined results for the nine months ended September 30, 2007		represent the addition of the Predecessor Period from January 1, 2007 to		February 13, 2007 and the Successor Period from February 14, 2007 to		September 30, 2007.  This combination does not comply with U.S.		GAAP or with the rules for pro forma presentation, but is presented		because we believe it provides a meaningful comparison of our results.
**Growth of Our Seismic Data Library:**  We regularly add to our seismic data librarythrough four different methods: (1) recording new data; (2) buying ownership ofexisting data for cash; (3) obtaining ownership of existing data sets throughnon-monetary exchanges; and (4) creating new value-added products from existingdata within our library.  For the period from January 1, 2008 to September 30, 2008, we completed theaddition of approximately 1,600 square miles of seismic data to our library.  Asof September 30, 2008, we hadapproximately 1,100 square miles of seismic data in progress.  

****
*(Index)*
** 

Critical Accounting Policies

We operate in one business segment, which is made up of seismic dataacquisition, seismic data licensing, seismic data processing and seismicreproduction services.  There have not been any changes in our criticalaccounting policies since December 31, 2007.

**Results of Operations**

***Revenue***

****The following table summarizes thecomponents of our revenue for the periods indicated (in thousands):

 

SUCCESSOR

SUCCESSOR

PREDECESSOR

PERIOD

COMBINED (1)

PERIOD

PERIOD

Three Months

Nine Months

Nine Months

February 14,

January 1,

Ended

Ended

Ended

2007 -

2007 -

September 30,

September 30,

September 30,

September 30,

September 13,

2008

2007

2008

2007

2007

2007

Acquisition revenue:

      Cash underwriting

$

7,545

$

7,865

$

32,872

$

29,121

$

23,034

$

6,087

      Underwriting from

         non-monetary

         exchanges

4,053

646

9,675

684

673

11

      Total acquisition

         revenue

11,598

8,511

42,547

29,805

23,707

6,098

Licensing revenue:

      Cash resales

37,297

29,162

89,802

78,668

72,683

5,985

      Non-monetary

         exchanges

2,202

135

6,659

2,866

2,873

(7

)

      Revenue deferred

(16,612

)

(15,984

)

(41,675

)

(39,938

)

(37,302

)

(2,636

)

      Recognition of revenue

         previously deferred

10,114

5,327

35,723

19,786

10,840

8,946

      Total resale revenue

33,001

18,640

90,509

61,382

49,094

12,288

Total seismic revenue

44,599

27,151

133,056

91,187

72,801

18,386

Solutions and other

1,492

1,205

5,136

3,848

3,224

624

Total revenue

$

46,091

$

28,356

$

138,192

$

95,035

$

76,025

$

19,010

 

(1)

		Our combined results for the nine months ended September 30, 2007		represent the addition of the Predecessor Period from January 1, 2007 to		February 13, 2007 and the Successor Period from February 14, 2007 to		September 30, 2007.  This combination does not comply with U.S.		GAAP or with the rules for pro forma presentation, but is presented		because we believe it provides a meaningful comparison of our results.
Total revenue increased $17.7 million, or 62.5% to $46.1 million in the thirdquarter of 2008 from $28.4 million in the third quarter of 2007.  Acquisitionrevenue increased 36.3% to $11.6 million in the third quarter of 2008 primarilyfrom increased data creation activity in Canada.  Total resale revenueincreased 77.0% from $18.6 million in the third quarter of 2007 to $33.0 millionin the third quarter of 2008 and was the result of various changes in thecomponents of resale revenue.  Cash resales for the 2008 third quarter were $37.3million compared to $29.2 million in the 2007 third quarter.  The 27.9% growthin cash resales reflected 33.2% higher core resales (U.S. 3D and Canada 2D and 3D), with Canada and the U.S. delivering 93.2% and 8.6% increases, respectively. Non-core cash resales (U.S. 2D and offshore) decreased by $0.3 million betweenthe periods.  Revenue recognized from previously deferred contracts, orselections, increased $4.8 million, or 89.9% between quarters.  This increasewas primarily due to several large selections on open library cards and thegrowth in the inventory of open library cards from which clients selectedsubsequent to the Merger.  Solutions and other revenue increased 23.8% betweenquarters primarily due to the increase in total seismic revenue and the typesof products delivered.

 
****
*(Index)*

Total revenue for the first nine months of 2008 increased $43.2 million, or 45.4%compared to the 2007 nine month period.  Acquisition revenue increased 42.8% from$29.8 million to $42.5 million representing strong data creation activity inboth the U.S. and Canada.  Total resale revenue increased 47.5% between the ninemonth periods primarily due to higher cash and non-cash resales and increasedselections.  Cash resales increased 14.2% from $78.7 million in the first ninemonths of 2007 to $89.8 million in the first nine months of 2008.  Thisincrease reflected a 15.5% growth in our core resales and 4.3% increase in ournon-core resales.  Revenue recognized from previously deferred contracts, orselections, increased $15.9 million, or 80.5%, primarily due to several largeselections on open library cards and the growth in the inventory of openlibrary cards from which clients selected subsequent to the Merger.  Solutionsand other revenue increased by 33.5% during the nine month periods primarilyresulting from the higher level of seismic revenue and the types of productsdelivered.

At September 30, 2008, we had a deferredrevenue balance of $50.9 million, compared to the December 31, 2007 balance of $48.2million.  The majority of the deferred revenue will be recognized whenselection of the data is made by the customer or upon expiration of theselection period, whichever occurs first.

***Depreciation and Amortization***

Depreciation and amortization was comprised of the following (in thousands):

 

SUCCESSOR

SUCCESSOR

PREDECESSOR

PERIOD

COMBINED (1)

PERIOD

PERIOD

Three Months

Nine Months

Nine Months

February 14,

January 1,

Ended

Ended

Ended

2007 -

2007 -

September 30,

September 30,

September 30,

September 30,

February 13,

2008

2007

2008

2007

2007

2007

Amortization of

   seismic data:

       Income forecast

$

28,068

$

17,435

$

82,824

$

55,489

$

48,578

$

6,911

       Straight-line

13,502

16,592

43,740

46,638

42,342

4,296

       Total amortization  of

            seismic  data

41,570

34,027

126,564

102,127

90,920

11,207

Depreciation of  property

   and equipment

592

498

1,776

1,724

1,446

278

Amortization of  acquired

   intangibles

1,430

1,480

4,366

3,642

3,642

-

Total

$

43,592

$

36,005

$

132,706

$

107,493

$

96,008

$

11,485

 

(1)

		Our combined results for the nine months ended September 30, 2007		represent the addition of the Predecessor Period from January 1, 2007 to		February 13, 2007 and the Successor Period from February 14, 2007 to		September 30, 2007.  This combination does not comply with U.S.		GAAP or with the rules for pro forma presentation, but is presented		because we believe it provides a meaningful comparison of our results.
Total seismic data library amortization amounted to $41.6 million in thethird quarter of 2008 compared to $34.0 million in the third quarter of 2007and $126.6 million for the first nine months of 2008 compared to $102.1 millionfor the first nine months of 2007.  The amount of seismic data libraryamortization fluctuates based on the level and location of specific seismicsurveys licensed (including licensing resulting from new data acquisition) andselected by our customers during any period as well as the amount ofstraight-line amortization required under our accounting policy.  The SuccessorPeriod reflects the higher level of amortization as a result of the step-up tofair value of our seismic data library in connection with the Merger.

*(Index)*

Seismic data amortization as of percentage of total seismic revenue issummarized as follows:

 

SUCCESSOR

SUCCESSOR

PREDECESSOR

PERIOD

COMBINED (1)

PERIOD

PERIOD

Three Months

Nine Months

Nine Months

February 14,

January 1,

Ended

Ended

Ended

2007 -

2007 -

September 30,

September 30,

September 30,

September 30,

February 13,

Components of Amortization

2008

2007

2008

2007

2007

2007

Income forecast

62.9

%

64.2

%

62.2

%

60.9

%

66.7

%

37.6

%

Straight-line

30.3

%

61.1

%

32.9

%

51.1

%

58.2

%

23.4

%

Total

93.2

%

125.3

%

95.1

%

112.0

%

124.9

%

61.0

%

 

(1)

		Our combined results for the nine months ended September 30, 2007		represent the addition of the Predecessor Period from January 1, 2007 to		February 13, 2007 and the Successor Period from February 14, 2007 to		September 30, 2007.  This combination does not comply with U.S.		GAAP or with the rules for pro forma presentation, but is presented		because we believe it provides a meaningful comparison of our results.
The percentage of income forecast amortization to total seismic revenuedecreased in the third quarter of 2008 as compared to the third quarter of 2007as a result of the level of revenue recognized on fully amortized data.  In thethird quarter of 2008, 14% of resale revenue recognized was from data whosecosts were fully amortized compared to 11% in the third quarter of 2007.  Inthe first nine months of 2008, 17% of resale revenue recognized was from fullyamortized data.  For the period from February 14, 2007 to September 30, 2007,substantially all resale revenue required income forecast amortization.

The amount of straight-line amortization decreased from the 2007 third quarterto the 2008 third quarter and from the first nine months of 2007 to the firstnine months of 2008.  Straight-line amortization represents the expenserequired under our accounting policy to ensure our data value is fullyamortized within four years of when the data becomes available for sale.  Thedecrease was due to some seismic surveys becoming fully amortized, thus notrequiring any straight-line amortization, as well as to the distribution ofrevenue among the various seismic surveys, resulting in less straight-lineamortization.

In connection with the Merger, we recordedacquired intangible assets of $53.4 million, of which $52.5 million areamortizable over their useful lives ranging from 1 to 10 years.  Theincrease in amortization of acquired intangibles between years was due to 2008including amortization from January 1, 2008 through September 30, 2008, whereas2007 only included amortization from the Merger date (February 14, 2007).

***Impairment of Intangible Asset***

******During the three and nine months ended September 30, 2008, we recordedan impairment charge of $225,000 related to the customer relationshipintangible asset that resulted from our October 2007 purchase of a small datafulfillment company in Canada.  The impairment was necessary as a result of theloss of significant customer business and current-period and projectedoperating losses associated with the customer relationship intangible asset. The impairment was determined by comparing estimated future cash flowsattributable to the customer relationship to the carrying value of the asset inaccordance with SFAS No. 144.  The resulting impairment reduced the customerrelationship intangible asset to $0.

***(Index)
**Selling, General and Administrative Expenses

******Selling, general and administrative ("SG&A") expenseswere $9.9 million in both the third quarter of 2008 and the third quarter of 2007and $30.1 million in the first nine months of 2008 compared to $27.4 million inthe first nine months of 2007.  SG&A expense is made up of the followingcash and non-cash expenses (in thousands):

 

SUCCESSOR

SUCCESSOR

PREDECESSOR

PERIOD

COMBINED (1)

PERIOD

PERIOD

Three Months

Nine Months

Nine Months

February 14,

January 1,

Ended

Ended

Ended

2007 -

2007 -

September 30,

September 30,

September 30,

September 30,

February 13,

2008

2007

2008

2007

2007

2007

Cash SG&A expenses

$

8,188

$

7,427

$

24,916

$

20,871

$

17,706

$

3,165

Non-cash compensation

   expense

1,594

2,407

4,972

6,366

5,954

412

Non-cash rent expense

68

68

210

165

165

-

Total

$

9,850

$

9,902

$

30,098

$

27,402

$

23,825

$

3,577

 

(1)

		Our combined results for the nine months ended September 30, 2007		represent the addition of the Predecessor Period from January 1, 2007 to		February 13, 2007 and the Successor Period from February 14, 2007 to		September 30, 2007.  This combination does not comply with U.S.		GAAP or with the rules for pro forma presentation, but is presented		because we believe it provides a meaningful comparison of our results.
The increase in cash SG&A expenses of $0.8 million from the third quarterof 2007 to the third quarter of 2008 was partly due to additional variablecompensation of $1.1 million, mainly sales commissions on the higher level ofrevenue recognized between the periods and higher accruals for employeeincentive bonuses.  This increase was partially offset by a reduction of $0.7million in professional fees primarily as a result of the 2007 period includingprofessional fees related to strategic merger and acquisition activities.

The increase in cash SG&A expenses of $4.0 million from the first ninemonths of 2007 to the first nine months of 2008 was primarily due to (1) the2007 period including a $0.9 million reduction in SG&A resulting from acash settlement of litigation and collection of a previously reservedreceivable and (2) an increase of $2.3 million in variable compensation, mainlysales commissions on the higher level of revenue recognized in the 2008 periodand higher accruals for employee incentive bonuses.  In addition, the strongerCanadian dollar added approximately $0.7 million to our operating expenses. These increases were partially offset by a reduction of $0.5 million inprofessional fees primarily as a result of the 2007 period includingprofessional fees related to strategic merger and acquisition activities.

The decrease in non-cash compensation expense between the 2008 and 2007 periodswas primarily due to a reduction in the expense related to stock optionsgranted to certain employees and non-employee directors since the Merger due tothe expense being recognized using graded vesting.  This reduction waspartially offset by a charge of $0.6 million in the first nine months of 2008due to the issuance of fully vested restricted stock units to certain keyemployees. 

The non-cash rent expense in the Successor Periods related to amortization of afavorable facility lease that was recorded as an intangible asset in connectionwith the Merger and is being amortized over the remaining lease term at thedate of the Merger of 6.25 years.

***(Index)
**Merger Expenses

******Merger expenses included the following fees and expenses incurred inconnection with the merger transaction for the periods indicated (inthousands):

 

SUCCESSOR

SUCCESSOR

PREDECESSOR

PERIOD

COMBINED (1)

PERIOD

PERIOD

Three Months

Nine Months

Nine Months

February 14,

January 1,

Ended

Ended

Ended

2007 -

2007 -

September 30,

September 30,

September 30,

September 30,

February 13,

2008

2007

2008

2007

2007

2007

Investment banking fees

$

-

$

-

$

-

$

7,789

$

-

$

7,789

Legal and advisory fees

-

190

-

1,174

545

629

Change in control

   payments

-

617

357

4,287

1,542

2,745

Early vesting of restricted

   stock (non-cash)

-

-

-

6,294

-

6,294

$

-

$

807

357

19,544

2,087

$

17,457

 

(1)

		Our combined results for the nine months ended September 30, 2007		represent the addition of the Predecessor Period from January 1, 2007 to		February 13, 2007 and the Successor Period from February 14, 2007 to		September 30, 2007.  This combination does not comply with U.S.		GAAP or with the rules for pro forma presentation, but is presented		because we believe it provides a meaningful comparison of our results.
***Other Income (Expense)***

******Interest expense, net, was $10.0 million in the third quarter of 2008 comparedto $9.9 million in the third quarter of 2007 and was $30.0 million and $31.3million for the nine months ended September 30, 2008 and 2007, respectively.  Thedecrease in the first nine months of 2008 compared to 2007 is primarily due tothe 2007 period including $4.0 million related to fees from the non-utilizedacquisition financing bridge facility.  Additionally, interest expense in thePredecessor Period was lower as a result of our lower debt level.

***Income Taxes***

******Tax benefit was $1.2 million and $3.7 million in the third quarters of2008 and 2007, respectively.  The 2008 third quarter benefit was comprised of(i) a benefit of $0.9 million related to our Canadian operations, (ii) abenefit of $0.8 million related to certain research and development tax creditsreceived in Canada, (iii) an expense of $0.3 million related to interest onuncertain tax positions and (iv) $0.2 million of state tax expense in the U.S.  The Federal tax benefit of $5.0 million resulting from our U.S. operations in the2008 third quarter was offset by a valuation allowance because it was morelikely than not that the deferred tax asset would not be realized.  The 2007 thirdquarter benefit was comprised of (i) a benefit of $3.4 million related to ourCanadian operations, (ii) a benefit of $0.1 million related to our U.S.operations, (iii) $0.2 million of state tax expense in the U.S., (iv) a benefitof $0.4 million related to Canadian withholding tax and (v) a benefit of $0.1 millionrelated to penalties and interest on uncertain tax positions.  In the 2007 thirdquarter, an adjustment was made to increase our U.S. deferred tax liabilityresulting from the Merger, allowing us to recognize a partial benefit on our U.S. operating results.  The remainder of the benefit of $8.5 million from the U.S. book loss in this period was offset by a valuation allowance because it was morelikely than not that the deferred tax asset would not be realized.  

Tax benefit was $1.0 million and $9.2 million for the nine months ended September30, 2008 and 2007, respectively.  The benefit for the first nine months of 2008was comprised of (i) a benefit of $3.7 million related to our Canadianoperations, (ii) a benefit of $0.8 million related to certain research anddevelopment tax credits received in Canada, (iii) an expense of $2.7 million relatedto an additional reserve, penalties and interest on uncertain tax positions, (iv)$0.7 million of state tax expense in the U.S. and (v) $0.2 million of Canadianwithholding taxes.  The Federal tax benefit of $15.0 million resulting from ourU.S. operations in the 2008 period was offset by a valuation allowance becauseit was more likely than not that the deferred tax asset would not be realized. Tax benefit was $9.2 million for the first nine months of 2007 and related toboth our U.S. and Canadian operations.  In the U.S., a deferred tax liabilityof $4.4 million was recorded in connection with the Merger due to the step-upin asset value related to the Merger.  In the period from February 14, 2007 toSeptember 30, 2007, a U.S. Federal tax benefit was recorded equivalent to theamount of deferred tax liability with the remainder of the benefit from ourU.S. book loss being offset by a valuation allowance because it was more likelythan not that the deferred tax asset would not be realized.  In Canada, a tax benefit of $5.6 million was recognized on our Canadian operations in theperiod from February 14, 2007 to September 30, 2007.  Additionally, we recordedother tax expense primarily related to state income tax and FIN 48 totalingapproximately $0.2 million in the period from February 14, 2007 to September30, 2007.  Tax expense in the period from January 1, 2007 to February 13, 2007primarily related to taxes on our Canadian operations and FIN 48.  The Federalincome tax expense recorded on our U.S. operations was offset by a reduction inour deferred tax asset valuation allowance resulting in no Federal tax expensein the U.S. for the period from January 1, 2007 to February 13, 2007. 

 
****
*(Index)*
 **Liquidity and CapitalResources**
****As of September 30, 2008, we had $36.8 million in consolidated cash, cashequivalents and short-term investments.  Other sources of liquidity include ourcredit facilities described below.

**U.S. Credit Facility:**  On February 14, 2007, we entered into anamended and restated U.S. revolving credit facility which provides for up to$25.0 million, subject to borrowing base limitations.  The borrowing base isdetermined from time to time based on the lesser of:

 
-  $25.0 million,-  75% of our trailing twelve months' U.S. cash margin (defined as cash     resales and Solutions revenue, plus gain on sale of seismic data, less     cash cost of sales and cash SG&A expenses, before depreciation and     amortization expense), or-  the sum of (1) 85% of eligible U.S. short term accounts (defined as     accounts that are not long term accounts and within 90 days of invoice     date), plus (2) the lesser of (a) 50% of eligible U.S. long term accounts     (defined as accounts with contracts for periods of performance from one     month to 18 months, where the account debtor makes payments over the term     of the contract) and (b) $7.5 million, plus (3) $15.0 million.
At September 30, 2008, there was no outstanding balance under the facility andthere was $25.0 million of availability.  

**Canadian Credit Facility:**  Our wholly ownedsubsidiary, Olympic Seismic Ltd. ("Olympic"), has a revolving credit facility which allows it toborrow up to $5.0 million (Canadian), subject to an availability formula, byway of prime-based loans or letters of credit.  Available borrowings under thefacility are equivalent to a maximum of $5.0 million (Canadian), subject to arequirement that such borrowings may not exceed 75% of good accounts receivable(as defined in the agreement) of Olympic, less prior-ranking claims, if any,relating to inventory or accounts.  As of September 30, 2008, no amounts wereoutstanding on this revolving line of credit and $5.0 million (Canadian) wasavailable on the line of credit. 

**9.75% Senior Unsecured Notes:**  On February 14, 2007, we issued in aprivate placement $400.0 million aggregate principal amount of our 9.75% SeniorNotes.  The proceeds from the notes were used to partially fund thetransactions in connection with the Merger.  Interest on these senior notes ispayable in cash, semi-annually in arrears on February 15 and August 15.

**11.75% Senior Unsecured Notes:**  On July 2, 2004, we issued in a privateplacement $193.0 million aggregate principal amount of our 11.75% SeniorNotes.  As of September 30, 2008, $2.0 million of the 11.75% Senior Notesremain outstanding.  Interest on these senior notes is payable in cash,semi-annually in arrears on January 15 and July 15.

****
*(Index)*
**Contractual Obligations:  As of September 30, 2008, we had outstanding debt and leaseobligations, with aggregate contractual cash obligations summarized as follows(in thousands):

 

Payments due by  period

Remainder

of

2014 and

Contractual cash obligations

Total

2008

2009-2011

2012-2013

thereafter

Debt obligations (1)(2)

$

617,541

$

18

$

119,921

$

78,102

$

419,500

Capital lease obligations (2)

5,320

87

1,050

761

3,422

Operating lease obligations

4,854

289

3,547

1,018

-

Total contractual cash obligations

$

627,715

$

394

$

124,518

$

79,881

$

422,922

 

(1)

Debt obligations include the face amount of our		9.75% Senior Notes totaling $400.0 million and the 11.75% Senior Notes		totaling $2.0 million.(2)
Amounts include interest related to debt and capitallease obligations.

**Cash Flows from Operating Activities:** Cash flows provided byoperating activities were $59.1 million, $55.7 million and $5.6 million for thenine months ended September 30, 2008 (Successor Period), for the period from February14, 2007 to September 30, 2007 (Successor Period), and for the period from January1, 2007 to February 13, 2007 (Predecessor Period), respectively.  Operatingcash flows for the first nine months of 2008 decreased $2.2 million from thefirst nine months of 2007 primarily due to an increase in interest expense paidin the first nine months of 2008 of $6.7 million and an increase in payment ofoperating expenses principally due to the higher level of revenue activity resultingin an increase in personnel costs and variable compensation.  These increaseswere partially offset by the 2007 period including the payment of fees andexpenses totaling $13.1 million related to the Merger.

**Cash Flows from Investing Activities:**  Cash flows used in investingactivities were $66.5 million, $41.0 million and $8.4 million for the nine monthsended September 30, 2008 (Successor Period), for the period from February 14,2007 to September 30, 2007 (Successor Period), and for the period from January1, 2007 to February 13, 2007 (Predecessor Period), respectively.  Cashexpenditures for seismic data were $65.5 million, $40.6 million and $8.4 millionfor the nine months ended September 30, 2008 (Successor Period), for the periodfrom February 14, 2007 to September 30, 2007 (Successor Period), and for theperiod from January 1, 2007 to February 13, 2007 (Predecessor Period),respectively.  The increase in cash invested in seismic data for the first ninemonths of 2008 compared to the first nine months of 2007 was primarily due to anincrease in cash paid for new data acquisition projects. 

****Cash Flows from Financing Activities:**  Cash flows used in financing activities were $0.1 million,$83.3 million and $0.4 million for the nine months ended September 30, 2008(Successor Period), for the period from February 14, 2007 to September 30, 2007(Successor Period), and for the period from January 1, 2007 to February 13,2007 (Predecessor Period), respectively.  The period from February 14, 2007 to September30, 2007 included (i) the issuance of $400.0 million of our 9.75% Senior Notes,(ii) a cash capital contribution of $153.5 million by ValueAct Capital inconnection with the Merger, (iii) acquisition of all of our outstanding sharesof common stock (other than shares owned by ValueAct Capital and certain sharesowned by management investors) in connection with the Merger for a total of$386.6 million, (iv) payment of $233.4 million of principal and tender andconsent fees on our 11.75% Senior Notes and (v) payment of $17.1 million offinancing fees in connection with the Merger.

**Anticipated Liquidity:**  Our abilityto make required payments of principal and interest on our 9.75% and 11.75% SeniorNotes and on borrowings under our revolving credit facilities, incur additionalindebtedness, and comply with our various debt covenants, will depend primarilyon our ability to generate substantial operating cash flows. Over the next 12months, we expect to obtain the funds necessary to pay our operating, capitaland other expenses and principal and interest on our senior notes, borrowingsunder our revolving credit facilities and our other indebtedness, from ouroperating cash flows, cash and cash equivalents on hand and, if required, fromadditional borrowings (to the extent available under our revolving creditfacilities and otherwise subject to the borrowing base). Our ability to satisfyour payment obligations depends substantially on our future operating andfinancial performance, which necessarily will be affected by, and subject to,industry, market, economic and other factors. If necessary, we could reduce ourspending on capital projects and operating expenses to ensure we operate withinthe cash flow generated from our operations.  We will not be able to predict orcontrol many of these factors, such as economic conditions in the markets wherewe operate and competitive pressures. 

 
****
*(Index)*
 *Deferred Taxes*
**As of September 30, 2008, we had a net deferred tax liability of $10.8 millionattributable to our Canadian operations and $4,000 attributable to U.S. state deferred taxes.  In the U.S., we had a deferred tax asset of $47.7 million, allof which was fully offset by a valuation allowance.  The recognition of theU.S. deferred tax asset will not occur until such time that it is more likelythan not that some portion or all of the deferred tax asset will be realized. As of September 30, 2008, it was more likely than not that all of the U.S. deferred tax asset will not be realized.

Section 382 of the Internal Revenue Code places a limit on certain taxattributes which were in existence prior to a greater than 50% change inownership.  The rules use a rolling three-year period for determination of suchchange.  At February 14, 2007, wehad a greater than 50% change in ownership.  However, any limitations resultingfrom the application of the Section 382 rules are not expected to have asignificant effect on us.

***Off-Balance Sheet Transactions*****

**Other than operating leases, we donot maintain any off-balance sheet transactions, arrangements, obligations orother relationships with unconsolidated entities or others that are reasonablylikely to have a material current or future effect on our financial condition,changes in financial condition, revenue or expense, results of operations,liquidity, capital expenditures or capital resources.

***Capital Expenditures***

****During the nine months ended September30, 2008, capital expenditures for seismicdata and other property and equipment amounted to $82.6 million.  Ourcapital expenditures for the full year of 2008 are presently estimated to be $107.5million.  The actual capital expenditures for the nine months ended September 30,2008 and total 2008 estimated capital expenditures are comprised of thefollowing (in thousands):  

 

Nine Months

Full Year

Ended

Estimate 

September 30, 2008

for 2008

New data acquisition

$

61,218

$

78,400

Cash purchases of seismic data and other

2,879

4,000

Non-monetary exchanges

17,566

23,500

Other property and equipment

910

1,600

Total capital expenditures

82,573

107,500

Less: Non-monetary exchanges

(17,566

)

(23,500

)

Changes in working capital

1,387

1,387

Cash investment per

      statement of cash flows

$

66,394

$

85,387

 

The capital expenditures discussed above are within thecapital expenditure limitations imposed by our U.S. revolving credit facility.

Capital expenditures funded from operating cash flow areas follows (in thousands):

Nine Months

Total

Ended

Estimate 

September 30, 2008

for 2008

Total capital expenditures

$

82,573

$

107,500

Less: Non-cash additions

(17,566

)

(23,500

)

Cash underwriting

(32,872

)

(40,000

)

Capital expenditures funded from	

      operating cash flow

$

32,135

$

44,000

 

As of September 30, 2008, we had capital expenditurecommitments related to data acquisition projects of approximately $49.8 million,of which we have obtained approximately $28.2 million of cash underwriting and $3.9million of underwriting for non-monetary exchanges.

 
****
*(Index)*

**Item 3.  QUANTITATIVEAND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

****We are exposed to marketrisk, including adverse changes in interest rates and foreign currency exchangerates.  

**Interest Rate Risk**

****We may enter into variousfinancial instruments, such as interest rate swaps or interest rate lockagreements, to manage the impact of changes in interest rates.  As of September30, 2008, we did not have any open interest rate swap or interest rate lockagreements.  Therefore, our exposure to changes in interest rates primarilyresults from our short-term and long-term debt with both fixed and floatinginterest rates.

**Foreign Currency Exchange Rate Risk**

****Our Canadian subsidiaries conduct business in the Canadian dollarand are therefore subject to foreign currency exchange rate risk on cash flowsrelated to sales, expenses, financing and investing transactions in currenciesother than the U.S. dollar. Currently, we do not have any open forward exchangecontracts.

We have not had any significant changes in our market risk exposures during thequarter ended September 30, 2008.

**Item 4T.  CONTROLS ANDPROCEDURES**

**(a)**  **Evaluationof Disclosure Controls and Procedures**

      

As ofthe end of the period covered by this report, our management carried out anevaluation, under the supervision and with the participation of our Presidentand Chief Executive Officer and our Chief Financial Officer, of theeffectiveness of the design and operation of the Company's disclosure controlsand procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) underthe Exchange Act), pursuant to Exchange Act Rule 13a-15. Based upon thatevaluation, our President and Chief Executive Officer along with our ChiefFinancial Officer concluded that the Company's disclosure controls andprocedures as of September 30, 2008 are effective in ensuring that informationrequired to be disclosed in the reports we file or submit under the ExchangeAct is recorded, processed, summarized, and reported within the time periodsspecified in the rules and forms of the SEC, and that such information isaccumulated and communicated to our management, including our President andChief Executive Officer and our Chief Financial Officer, as appropriate, toallow timely decisions regarding required disclosures.

**(b)**  **Changes in Internal Control Over Financial Reporting**

      

Therehave been no changes in our internal controls over financial reporting duringthe quarter ended September 30, 2008 that have materially affected, or arereasonably likely to materially affect, our internal controls over financialreporting.

***(Index)*
**PART II - OTHER INFORMATION

**Item1A.  RISK FACTORS**

****Part I, Item 1A, "Risk Factors," of our Annual Reporton Form 10-K for the year ended December 31, 2007 includes a detaileddiscussion of our risk factors. The information presented below updates, andshould be read in conjunction with, the risk factors and information disclosedin our 2007 Form 10-K.

*The recent financial crisis and fallingcommodity prices could adversely affect demand for our seismic data and relatedservices and may increase our credit risk of customer non-payment.*

**Our customers generally rely onequity and debt financing from public and private capital sources and cash flowfrom operations to finance their drilling activities.  We believe that therecent U.S. and global financial crisis has made it more difficult for ourcustomers to obtain equity capital and credit.  As a consequence, demand forour seismic data and related services could be adversely affected by thesefinancial market conditions and, as such, we are unable to predict the severityor duration of any such decrease in demand.  We also believe that fears of aprolonged recession and possibly reduced energy demand have contributed torecent substantial declines in prices for oil and gas.  These falling commodityprices could also dampen demand for our seismic data and related services asour customers' operating cash flow decreases and the borrowing bases undertheir oil and gas reserve-based credit facilities are reduced as a consequenceof lower commodity prices.  We may also face increased credit risk fromcustomers as the ability of some of our customers to pay amounts owed to us maybe impaired because of the financial crisis and falling commodity prices.

**Item 1., 2., 3., 4. and 5.   **Not applicable. 

**Item 6.  EXHIBITS**

 

3.1

Certificate  of Incorporation of the Company (incorporated by reference from Exhibit 3.1  to the Registration Statement on Form S-4, No. 333-144844, as filed with the  SEC on July 25, 2007).

3.2

Bylaws of  Seitel, Inc. (incorporated by reference from Exhibit 3.2 to the Registration  Statement on Form S-4, No. 333-144844, as filed with the SEC on July 25,  2007).

31.1

*

Certification  of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted  	pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2

*

Certification  of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted  	pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1

**

Certification  of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted  pursuant to Section 906 of the Sarbanes−Oxley Act of 2002

32.2

**

Certification  of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted  pursuant to Section 906 of the Sarbanes−Oxley Act of 2002

_______________

*           Filedherewith.

**          Furnished,not filed, pursuant to 601(b)(32) of Regulation S-K.

 

 

*(Index)*

**SIGNATURES**
Pursuant to the requirements of the Securities and  Exchange Act of 1934, the registrant has duly caused this report

to be signed on its behalf by the undersigned thereunto  duly authorized.

**SEITEL, INC.**

Dated: November

12,

2008

/s/

*Robert D. Monson*

Robert D. Monson

Chief Executive Officer and President

Dated: November 

12,

2008

/s/

*William J. Restrepo*

William J. Restrepo

Chief Financial Officer

*(Index)*
 
EXHIBIT

INDEX

Exhibit

Title

3.1

Certificate  of Incorporation of the Company (incorporated by reference from Exhibit 3.1  to the Registration Statement on Form S-4, No. 333-144844, as filed with the  SEC on July 25, 2007).

3.2

Bylaws of  Seitel, Inc. (incorporated by reference from Exhibit 3.2 to the Registration  Statement on Form S-4, No. 333-144844, as filed with the SEC on July 25,  2007).

31.1

*

Certification  of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted  	pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2

*

Certification  of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted  	pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1

**

Certification  of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted  pursuant to Section 906 of the Sarbanes−Oxley Act of 2002

32.2

**

Certification  of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted  pursuant to Section 906 of the Sarbanes−Oxley Act of 2002

_______________

*     Filed herewith.

**    Furnished, not filed, pursuant toItem 601(b)(32) of Regulation S-K.

 

 

 ****************************** |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|