Seitel, Inc. Secures $100 Million Credit Lines from Banks

Seitel, Inc., a diversified energy company, has received commitments from its banks to provide a total of up to $100 million in credit lines to support its operating growth. The company's wholly-owned subsidiary, DDD Energy, Inc., will be eligible for a revolving line of credit of up to $75 million, secured by proven oil and gas reserves and supported by Seitel's guaranty. In addition, Seitel's revolving credit line for its seismic data operations will be increased from $20 to $25 million and extended to June 1, 1997.

Key Takeaways:

Seitel, Inc. has secured $100 million in credit lines from its banks, with up to $75 million available to DDD Energy, Inc. for a revolving line of credit secured by proven oil and gas reserves.
The credit lines will support Seitel's operating growth, with the company's banks recognizing its strong financial condition and growth prospects.
DDD Energy, Inc. will implement advanced seismic technology in partnering relationships with over 60 oil and gas companies.
Seitel Gas & Energy Corp., another wholly-owned subsidiary, will market natural gas directly to large-volume consumers at significant utility-rate savings.
The interest rate on the increased seismic credit facility will be the prevailing prime rate or LIBOR plus 2 percent, at Seitel's discretion.
Seitel is a leading provider of seismic data and corollary geophysical services to over 300 petroleum companies.

Statistics:

$100 million: total credit lines provided by Seitel's banks
$75 million: maximum amount available to DDD Energy, Inc. for a revolving line of credit
$25 million: increased revolving credit line for Seitel's seismic data operations
300: number of petroleum companies that Seitel provides seismic data and corllary geophysical services to
60: number of oil and gas companies that DDD Energy, Inc. partners with
2 percent: interest rate added to LIBOR for the new bank line for petroleum reserves

Sources:

PR Newswire
Seitel, Inc.