SEITEL (SEI) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : SEITEL (SEI)

SEI 53.23

+0.2%

Oct 31 9:30 AM EDT

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Don Earl who wrote (418)	4/22/2002 11:18:41 AM
From: Don Earl	Read Replies (1) of 427

Alaska National Wildlife Reserve (ANWR) There's been a lot of speculation lately on what companies would benefit from opening ANWR to exploration. Before considering SEI as an ANWR play it's worth taking some time to look at their business model. 1. Seitel does not operate a single seismic survey crew. All of their data has to be purchased from third parties. 2. Seitel's existing inventory of data is primarily concentrated in the Gulf of Mexico and Canada. 3. Seitel's debt levels and the recent breach of covenants on their line of credit places the company in a serious liquidity crunch on funding new multi client surveys to purchase data. The most likely outcome for Seitel if ANWR is opened is a further sharp decline in interest in the company's existing library of data. While those companies with the ability to mobilize survey crews to new areas should prosper, Seitel will be sitting on a large overhead of data outside the new hot spot, with little or no ability to respond to a shift to areas outside their niche market.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next