EXHIBIT 99.1 



                                               February 3, 1998




Snyder Oil Corporation
Suite 2500
777 Main Street
Fort Worth, Texas 76102

Gentlemen:

      In accordance with your request, we have estimated the proved reserves and
future revenue,  as of December 31, 1997, to the Snyder Oil  Corporation  (SOCO)
interest in certain oil and gas  properties  located in the United States and in
federal  waters  offshore  Louisiana  and Texas as  listed  in the  accompanying
tabulations.  As requested,  lease and well  operating  costs do not include the
per-well  overhead  expenses allowed under joint operating  agreements for those
properties operated by SOCO. 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, 1997, 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                           6,485,719    198,844,328        $329,204,500        $212,339,000
    Non-Producing                       1,027,884     55,469,307         126,347,000          81,955,500
    Proved Undeveloped                    512,747     64,668,474          60,158,600          23,454,100
                                       ----------    -----------        ------------        ------------

         Total Proved                   8,026,350    318,982,109        $515,710,100        $317,748,600
</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, the properties in this report have been
subdivided  into  significant  property  groups  and  project  areas  behind the
appropriate  division  tabs.  Included for each  significant  property group are
summary  projections of reserves and revenue by reserve  category.  Included for
each  project  area are summary  projections  of reserves and revenue by reserve
category along with one-line summaries of reserves, economics, and basic data by
lease.  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



<PAGE>










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.

      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 also do not include any salvage value for the
lease and well  equipment,  but do include our estimates of the costs to abandon
the wells, platforms, and production facilities.  Abandonment costs for offshore
properties are included with other capital investments.

      Oil prices used in this report are based on a December 31, 1997 West Texas
Intermediate posted price of $15.50 per barrel, adjusted by significant property
group for regional  posted price  differentials.  Gas prices used in this report
are based on average  December  1997  prices by  pipeline  for each  significant
property  group.  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


<PAGE>


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  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:AKC