Dropping seismic demand thumps Seitel
Houston-based seismic outfit Seitel said its revenue for the quarter that ended 30 June was expected to be $21.3 million, down 52% from last year.
Cash resales for the second quarter were $7.2 million, down 78% from the same quarter of last year and down 28% on a sequential basis.
Seitel’s cash resales saw decreases throughout all geographical areas and all sizes of clients curtailed data buys from the company's library, the Seitel said in a release.
"The absence of large licensing deals and the low number of library card contracts continue to hurt our licensing revenue," Seitel said in a release.
The company said it was particularly hurt by low natural gas prices, as cash resales fell year-on-year by 79% and 74% in the US and Canada, respectively.
Seitel currently has a cash balance of $28.7 million, which puts it in violation of its covenants on an undrawn $25 million credit facility.
The company is in discussion with Wells Fargo on the status of that facility.
