EXHIBIT 99.1


                                               February 4, 1997



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

Gentlemen:

     In accordance with your request,  we have estimated the proved reserves and
future revenue,  as of December 31, 1996, to the Snyder Oil  Corporation  (SOCO)
interest in certain oil and gas  properties  located in the United States and in
federal waters offshore Louisiana 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, 1996, to be: Net Reserves Future Net Revenue
<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                     13,159,701          145,971,065          $ 517,276,200         $ 287,013,000
    Non-Producing                    603,626            2,096,499             13,474,300             7,602,100
Proved Undeveloped                 1,935,000          105,239,714            291,643,300           134,424,700
                              ---------------     ----------------      -----------------     ----------------

       Total Proved               15,698,327          253,307,278          $ 822,393,800         $ 429,039,800
</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 project areas behind the appropriate  division tab. Included for
each  project  area are summary  projections  of  reserves  and revenue for each
reserve category along with one-line summaries of reserves, economics, and basic
data by lease for each  significant  property  group.  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  estimate  do
not  include any value  for  probable  or  possible  reserves which may exit for
<PAGE>

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, 1996 West Texas
Intermediate posted price of $24.25 per barrel, adjusted by significant property
group for regional  posted price  differentials.  Gas prices used in this report
are based on average  December  1996  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 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.

<PAGE>

     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/ Clarence Netherland             
                                      Netherland Sewell & Associates, Inc.

RKG:AKC