EXHIBIT 99.1



NSAll N E T H E R L A N D, S E W E L L            CHAIRMAN-CLARENCE M.NETHERLAND
      & A S S O C I A T E S. I N C.                 PRESIDENT- FREDERIC D.SEWELL

International Petroleum Consultants                       SENIOR VICE PRESIDENTS
Engineering, Geology, Geophysics                       DANNY D. SIMMONS -HOUSTON
                                                     THOMAS J. TELLA II - DALLAS
                                                         DAN PAUL SMITH - DALLAS
                                                        G. LANCE BINDER - DALLAS
                                                     PHILLIP A.LONGACRE - DALLAS
                                                         P. SCOTT FROST - DALLAS
                                                    C.H.(SCOTT) REES II - DALLAS
                                               
                                      February 3, 1999


Snyder Oil Corporation
777 Main-Street, Suite 1400
Fort Worth, Texas 76102

Gentlemen:

         In accordance with your request,  we have estimated the proved reserves
and future  revenue,  as of December  31,  1998,  to the Snyder Oil  Corporation
(SOCO)  interest  in certain  oil and gas  properties  located in Wyoming and in
state and federal waters  offshore Gulf of Mexico as listed in the  accompanying
tabulations.  This report has been prepared using constant  prices and costs and
conforms to the guidelines of the Securities and Exchange Commission (SEC).

         As presented in the accompanying summary projections,  Tables I through
IV, we estimate the net reserves and future net revenue to the SOCO interest, as
of December 31, 1998, to be:
<TABLE>
<CAPTION>

                                            Net Reserves                            Future Net Revenue         
                                    -------------------------------       -------------------------------------         
                                        Oil              Gas                                     Present Worth
        Category                     (Barrels)          (MCF)                  Total                 at 10%    
------------------------            -----------     ---------------       ---------------        --------------

   <S>                              <C>              <C>                    <C>                    <C>    
Proved Developed
  Producing                         2,109,898        262,025,911            $36O,693,600           $215,412,500
  Non-Producing                     1,447,711         43,168,301              70,520,100             44,911,100
Proved Undeveloped                    875,798         67,846,732              67,919,400             25,100,100
                                    ---------       ------------          --------------         --------------

    Total Proved                    4,433,407        373,040,944            $499,133,100           $285,423,700
</TABLE>

         The oil reserves  shown include crude oil and  condensate.  Oil volumes
are expressed in barrels which are equivalent to 42 United States  gallons.  Gas
volumes are expressed in thousands of standard  cubic feet (MCF) at the contract
temperature and pressure bases.

         As shown  in the  Table  of  Contents,  this  report  includes  summary
projections  of reserves and revenue by reserve  category for all properties and
for each  division.  Summary  projections  of  reserves  and  revenue by reserve
category along with one-line summaries of reserves, economics, and basic data by
lease are also included for each project  behind the  appropriate  division tab.
For the purposes of this report,  the term "lease"  refers to a single  economic
projection.

         The estimated  reserves and future revenue shown in this report are for
proved  developed  producing,   proved  developed   non-producing,   and  proved
undeveloped  reserves.  In accordance with SEC guidelines,  our estimates do not
include any value for  probable or possible  reserves  which may exist for these
properties.  This report does not include any value which could be attributed to
interests in  undeveloped  acreage  beyond  those  tracts for which  undeveloped
reserves have been estimated.


<PAGE>


          Future gross revenue to the SOCO interest is prior to deducting  state
production  taxes and ad valorem  taxes.  Future net revenue is after  deducting
these  taxes,  future  capital  costs,  and  operating   expenses,   but  before
consideration  of federal  income  taxes;  future net revenue  for the  offshore
properties is also after  deducting  abandonment  costs.  In accordance with SEC
guidelines,  the future net revenue has been  discounted at an annual rate of 10
percent to determine its "present worth." The present worth is shown to indicate
the effect of time on the value of money and should  not be  construed  as being
the fair market value of the properties.

         For the purposes of this report,  a field  inspection of the properties
has not been  performed  nor has the  mechanical  operation  or condition of the
wells and their  related  facilities  been  examined.  We have not  investigated
possible  environmental  liability  related to the  properties;  therefore,  our
estimates  do not include any costs which may be incurred  due to such  possible
liability.  Our estimates of future revenue do not include any salvage value for
the lease and well equipment nor the cost of abandoning the onshore  properties.
Future revenue estimates for offshore properties include SOCO's estimates of the
net costs to abandon the wells, platforms,  and production facilities;  such net
costs include credit for recoverable  salvage. We have reviewed SOCO's estimates
and consider them to be reasonable.  Abandonment  costs for offshore  properties
are included with other capital investments.

         Oil prices  used in this  report are based on a December  31, 1998 West
Texas  Intermediate  posted  price of $9.50 per barrel,  adjusted  for  regional
posted price  differentials by zone for the Beaver Creek Project, by significant
property group for the Washakie Project, and by field for the offshore projects.
Gas prices used in this report are based on average December 1998 prices by zone
for the Beaver Creek Project, by pipeline for the Washakie Project, and by field
for the offshore  projects.  Oil and gas prices are held  constant in accordance
with SEC guidelines.

         Lease and well operating  costs are based on operating  expense records
of SOCO. For non-operated properties,  these costs include the per-well overhead
expenses allowed under joint operating  agreements along with costs estimated to
be incurred at and below the district and field levels. As requested,  lease and
well operating costs for the operated  properties  include only direct lease and
field level costs.  Headquarters general and administrative overhead expenses of
SOCO are not  included.  Lease and well  operating  costs are held  constant  in
accordance  with SEC  guidelines.  Capital  costs are  included as required  for
workovers, new development wells, and production equipment.

         We have  made no  investigation  of  potential  gas  volume  and  value
imbalances  which may have resulted from  overdelivery or  underdelivery  to the
SOCO  interest.  Therefore,  our estimates of reserves and future revenue do not
include  adjustments for the settlement of any such imbalances;  our projections
are based on SOCO receiving its net revenue  interest share of estimated  future
gross gas production.

         The reserves included in this report are estimates only and  should not
be  construed  as  exact  quantities.  They  may or may  not  be  recovered;  if
recovered, the revenues therefrom and the costs related thereto could be more or
less than the  estimated  amounts.  The sales  rates,  prices  received  for the
reserves,  and  costs  incurred  in  recovering  such  reserves  may  vary  from

<PAGE>

assumptions included   in  this   report  due  to  governmental   policies   and
uncertainties of supply and demand.  Also, estimates of reserves may increase or
decrease as a result of future operations.

         In evaluating the  information at our disposal  concerning this report,
we have  excluded  from our  consideration  all  matters  as to  which  legal or
accounting,  rather  than  engineering  and  geological,  interpretation  may be
controlling.   As  in  all  aspects  of  oil  and  gas  evaluation,   there  are
uncertainties inherent in the interpretation of engineering and geological data;
therefore,  our  conclusions  necessarily  represent only informed  professional
judgments.

         The titles to the  properties  have not been  examined  by  Netherland,
Sewell & Associates,  Inc.,  nor has the actual degree or type of interest owned
been independently  confirmed. The data used in our estimates were obtained from
Snyder Oil Corporation  and the  nonconfidential  files of Netherland,  Sewell &
Associates,  Inc. and were accepted as accurate.  We are  independent  petroleum
engineers,  geologists,  and  geophysicists;  we do not own an interest in these
properties and are not employed on a contingent basis.  Basic geologic and field
performance  data together with our  engineering  work sheets are  maintained on
file in our office.

                                                Very truly yours,

                                                /s/ Frederic D. Sewell

RKG:EAD