EXHIBIT 99.3


                                                  February 5, 1997





SOCO Offshore, Inc.
A subsidiary of Snyder Oil Corporation
1221 Lamar, Suite 1200
Houston, Texas  77010

Gentlemen:

     At your  request,  we have  prepared an estimate  of the  reserves,  future
production,  and income  attributable to certain leasehold and royalty interests
of SOCO Offshore,  Inc.  (SOCO) as of December 31, 1996. The subject  properties
are located in the state of Texas and in the federal waters  offshore  Louisiana
and Texas.  The income data were  estimated  using the  Securities  and Exchange
Commission (SEC) guidelines for future price and cost parameters.

     The estimated  reserves and future income amounts  presented in this report
are related to hydrocarbon prices. December 1996 hydrocarbon prices were used in
the  preparation of this report as required by SEC guidelines;  however,  actual
future  prices may vary  significantly  from  December  1996 prices.  Therefore,
volumes of reserves  actually  recovered and amounts of income actually received
may differ significantly from the estimated quantities presented in this report.
The results of this study are summarized below.
<TABLE>
                                                      SEC PARAMETERS
                                          Estimated Net Reserves and Income Data
                                        Certain Leasehold and Royalty Interests of
                                                    SOCO OFFSHORE, INC.
                                                 As of December 31, 1996
               ----------------------------------------------------------------------------------------
<CAPTION>

                                                                                PROVED
                                    ---------------------------------------------------------------------------------------
                                                     DEVELOPED                                                      TOTAL
                                    ---------------------------------------------
                                         PRODUCING               NON-PRODUCING             UNDEVELOPED              PROVED
                                    ------------------      ---------------------      ------------------       -------------------
<S>                                    <C>                      <C>                      <C>                    <C>   
NET REMAINING RESERVES
  OIL/CONDENSATE - BARRELS                1,130,123                 614,980                  35,461                 1,780,564
  GAS - MMCF                                 38,952                  14,712                   1,170                    54,834

INCOME DATA
  FUTURE GROSS REVENUE                 $182,774,740             $74,060,517              $5,589,874              $262,452,131
  DEDUCTIONS                             30,263,094              16,604,502               4,099,373                50,966,969
                                      --------------            ------------             -----------            --------------
  FUTURE NET INCOME (FNI)              $152,511,646             $57,456,015              $1,490,501              $211,458,162

  DISCOUNTED FNI @ 10%                 $139,086,667             $35,973,701              $  523,445              $175,583,813
</TABLE>



<PAGE>

<TABLE>
<CAPTION>

                                                                              PROBABLE
                                   --------------------------------------------------------------------------------------------
                                                     DEVELOPED                                                       TOTAL
                                   -------------------------------------------
                                        PRODUCING             NON-PRODUCING              UNDEVELOPED               PROBABLE
                                   -----------------      --------------------       ------------------       -----------------
<S>                                     <C>                       <C>                       <C>                    <C>
NET REMAINING RESERVES
  OIL/CONDENSATE - BARRELS                  274,627                    40,422                   37,763                 352,812
  GAS - MMCF                                  5,943                     3,903                    1,246                  11,092

INCOME DATA
  FUTURE GROSS REVENUE                  $30,479,322               $16,291,982               $5,952,614             $52,723,918
  DEDUCTIONS                                148,298                   752,249                    3,248                 903,795
                                      --------------            --------------           --------------          --------------
  FUTURE NET INCOME (FNI)               $30,331,024               $15,539,733               $5,949,366             $51,820,123

  DISCOUNTED FNI @ 10%                  $21,772,784               $ 8,181,240               $5,064,732             $35,018,756

</TABLE>

<TABLE>
<CAPTION>
                                                                                 POSSIBLE
                                     ----------------------------------------------------------------------------------------------
                                                       DEVELOPED                                                        TOTAL
                                     ---------------------------------------------
                                         PRODUCING               NON-PRODUCING              UNDEVELOPED               POSSIBLE
                                     ------------------      ---------------------      -------------------       -----------------
<S>                                        <C>                         <C>                      <C>                    <C> 
NET REMAINING RESERVES
  OIL/CONDENSATE - BARRELS                     239,006                         94                   37,568                 276,668
  GAS - MMCF                                     2,915                      1,122                    1,240                   5,277

INCOME DATA
  FUTURE GROSS REVENUE                     $17,440,154                 $4,316,005               $5,921,988             $27,678,147
  DEDUCTIONS                                   128,986                    128,251                    2,050                 259,287
                                         --------------               ------------           --------------          --------------
  FUTURE NET INCOME (FNI)                  $17,311,168                 $4,187,754               $5,919,938             $27,418,860

  DISCOUNTED FNI @ 10%                     $10,805,217                 $2,092,899               $4,990,695             $17,888,811
</TABLE>

     Liquid  hydrocarbons  are expressed in standard 42 gallon barrels.  All gas
volumes are sales gas expressed in millions of cubic feet (MMcf) at the official
temperature  and  pressure  bases of the  areas in which  the gas  reserves  are
located.
     The future gross revenue is after the deduction of  production  taxes.  The
deductions  are comprised of the normal direct costs of operating the wells,  ad
valorem taxes,  recompletion  costs,  development costs, and certain abandonment
costs net of salvage. The future net income is before the deduction of state and
federal  income  taxes and  general  administrative  overhead,  and has not been
adjusted for outstanding loans that may exist nor does it include any adjustment
for cash on hand or undistributed  income. at SOCO's request, gas imbalances for
four fields were  included in this  report.  The fields were Eugene  Island 342,
East Cameron  317/318,  Eugene  Island 324, and Eugene Island  198/199/202.  Gas
reserves account for  approximately 83 percent and Liquid  hydrocarbon  reserves
account for the  remaining 17 percent of total future gross  revenue from proved
reserves.

     The  discounted  future  net  income  shown  above was  calculated  using a
discount rate of 10 percent per annum compounded monthly.  Future net income was
discounted  at four other  discount  rates which were also  compounded  monthly.
These results are shown on each  estimated  projection of future  production and
income presented in a later section of this report and in summary form below.


<PAGE>

<TABLE>
<CAPTION>
                                                          DISCOUNTED FUTURE NET INCOME
                                                            AS OF DECEMBER 31, 1996
                                   ---------------------------------------------------------------------
          DISCOUNT RATE                    TOTAL                       TOTAL                     TOTAL
             PERCENT                      PROVED                      PROBABLE                  POSSIBLE
      ----------------------       ---------------------        --------------------       ------------------
                <S>                    <C>                          <C>                       <C>  
                 5                     $192,063,468                 $42,306,871               $21,991,600
                15                     $161,504,807                 $29,357,298               $14,751,966
                20                     $149,392,052                 $24,900,590               $12,326,477
                25                     $138,890,657                 $21,347,634               $10,429,946
</TABLE>

The results  shown above are presented  for your  information  and should not be
construed as our estimate of fair market value.

RESERVES INCLUDED IN THIS REPORT

     The PROVED RESERVES  included herein conform to the definition as set forth
in the Securities and Exchange Commission's  Regulation S-X Part 210.4-10 (a) as
clarified by subsequent  Commission  Staff  Accounting  Bulletins.  The PROBABLE
RESERVES  and  POSSIBLE  RESERVES  included  herein  conform to  definitions  of
probable and possible  reserves  approved by the Society of Petroleum  Engineers
and the Society of Petroleum  Evaluation  Engineers.  The definitions of proved,
probable,  and possible reserves are included under the tab "Reserve Definitions
and Pricing Assumptions" in this report.

     We have included  probable and possible  reserves and income in this report
at the request of SOCO.  These data are for SOCO's  information  only and should
not be  included  in reports to the SEC  according  to the SEC  guidelines.  The
probable  reserves are less certain to be recovered than the proved reserves and
reserves  classified as possible are less certain to be recovered  than those in
the probable  category.  The reserves and income quantities  attributable to the
different  reserve  classifications  that  are  included  herein  have  not been
adjusted to reflect the varying  degrees of risk  associated  with them and thus
are not comparable.

     The proved developed  non-producing  reserves included herein are comprised
of shut-in and behind pipe  categories.  The  probable  developed  non-producing
reserves included herein are comprised of the behind pipe category. The possible
developed  non-producing  reserves  included  herein are comprised of the behind
pipe category.  The various reserve status  categories are defined under the tab
"Reserve Definitions and Pricing Assumptions" in this report.

ESTIMATES OF RESERVES

     Producing reserves included herein were estimated by the performance method
and the volumetric  method.  The performance  method utilized  extrapolations of
various historical data. Non- producing and undeveloped reserves included herein
were estimated by the volumetric  method.  All of the reserves  included  herein
were based only on primary recovery

     The reserves  included in this report are estimates  only and should not be
construed as being exact quantities.  They may or may not be actually recovered,
and if recovered,  the revenues  therefrom and the actual costs related  thereto
could  be more or less  than  the  estimated  amounts.  Moreover,  estimates  of
reserves may increase or decrease as a result of future operations.


<PAGE>


FUTURE PRODUCTION RATES

     Initial production rates are based on the current producing rates for those
wells now on production.  Test data and other related  information  were used to
estimate the anticipated  initial  production rates for those wells or locations
which are not  currently  producing.  If no  production  decline  trend has been
established,  future  production  rates were held constant,  or adjusted for the
effects of curtailment where appropriate,  until a decline in ability to produce
was  anticipated.  An estimated rate of decline was then applied to depletion of
the reserves.  If a decline trend has been  established,  this trend was used as
the basis for  estimating  future  production  rates.  For  reserves  not yet on
production, sales were estimated to commence at an anticipated date furnished by
SOCO.

     We estimated  that future gas  production  rates  limited by  allowables or
marketing  conditions  will  continue to be the same as the average rate for the
latest available 12 months of actual production until such time that the well or
wells are  incapable  of  producing  at this  rate.  The well or wells were then
projected to decline at their decreasing delivery capacity rate.

     The future  production  rates from wells now on  production  may be more or
less than  estimated  because of changes in market demand or  allowables  set by
regulatory  bodies.  Wells or locations  which are not  currently  producing may
start  producing  earlier or later than  anticipated  in our  estimates of their
future production rates.

HYDROCARBON PRICES

     SOCO  furnished  us with  prices in effect at  December  31, 1996 and these
prices were held constant. In accordance with Securities and Exchange Commission
guidelines,  changes in liquid and gas prices  subsequent  to December  31, 1996
were not taken into  account in this report.  Future  prices used in this report
are  discussed  in more detail under the tab  "Reserve  Definitions  and Pricing
Assumptions" in this report.

COSTS

     Operating  costs for leases and wells in this report were provided by SOCO.
They were accepted without independent verification.  SOCO informs us that these
costs are  representative  of the historical  costs  directly  applicable to the
leases or wells.  No  deduction  was made for  indirect  costs  such as  general
administration and overhead expenses,  loan repayments,  interest expenses,  and
exploration and  development  prepayments  that are not charged  directly to the
leases or wells.

     Development   costs  were  furnished  to  us  by  SOCO  and  are  based  on
authorizations for expenditure for the proposed work or actual costs for similar
projects.  The estimated net cost of abandonment  after salvage was included for
all of the properties.  The estimates of the net abandonment  costs furnished by
SOCO were accepted without independent verification.

     Current costs were held constant throughout the life of the properties.

GENERAL

     Table A presents a one line  summary of proved  reserve and income data for
each of the subject  properties  which are ranked  according to their future net
income discounted at 10 percent per year. Table B presents a one line summary of
gross and net reserves and income data for each of the subject properties. Table
C presents a one line summary of initial basic data for each of the

<PAGE>


subject  properties.  Tables 1 through 212 present our  estimated  projection of
production and income by years beginning January 1, 1997, by program, field, and
lease or well.

     While it may reasonably be anticipated  that the future prices received for
the sale of production and the operating  costs and other costs relating to such
production may increase or decrease from existing levels,  such changes were, in
accordance with rules adopted by the SEC,  omitted from  consideration in making
this evaluation.

     The estimates of reserves presented herein were based upon a detailed study
of the properties in which SOCO owns an interest;  however, we have not made any
field  examination of the properties.  No consideration was given in this report
to  potential  environmental  liabilities  which  may  exist  nor were any costs
included for potential liability to restore and clean up damages, if any, caused
by past  operating  practices.  SOCO has informed us that they have furnished us
all of the accounts,  records,  geological and engineering data, and reports and
other data required for this investigation. The ownership interests, prices, and
other  factual  data  furnished  by  SOCO  were  accepted  without   independent
verification. The estimates presented in this report are based on data available
through December 1996.

     Neither  we nor any of our  employees  have  any  interest  in the  subject
properties and neither the employment to make this study nor the compensation is
contingent  on our  estimates  of  reserves  and future  income for the  subject
properties.

     This report was  prepared  for the  exclusive  use and sole benefit of SOCO
Offshore, Inc. The data, work papers, and maps used in this report are available
for  examination by authorized  parties in our offices.  Please contact us if we
can be of further service.

                                            Very truly yours,

                                            RYDER SCOTT COMPANY
                                            PETROLEUM  ENGINEERS




                                            Joseph E. Blankenship, P.E.
                                            Senior Petroleum Engineer
JEB/sw

Approved:

-------------------------------------
Joseph E. Magoto, P.E.
Group Vice President