Condensed Consolidating Financial Information

The Notes are fully and unconditionally guaranteed, jointly and severally, by the Company, and by each of the Company’s current and future domestic subsidiaries (other than Geokinetics Holdings, USA, Inc., which is the issuer of the Notes). The non-guarantor subsidiaries consist of all subsidiaries and branches outside of the United States. Separate condensed consolidating financial statement information for the parent, guarantor subsidiaries and non-guarantor subsidiaries as of December 31, 2012 and 2011 and for the years ended December 31, 2012, 2011 and 2010 is as follows (in thousands):



	BALANCE SHEET
	December 31, 2012
	Guarantor Parent Company			Issuer Subsidiary		Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Current assets	$	(3,860	)	$	—	$	64,596	$	148,993		$	—		$	209,729
Property and equipment, net	10,123			—		125,047		14,867			—			150,037
Investment in subsidiaries	197,931			357,951		255,174		15,179			(826,235		)	—
Intercompany accounts	(2,487		)	61,013		120,467		(178,993		)	—			—
Other non-current assets	809			8,105		22,033		2,183			—			33,130
Total assets	$	202,516		$	427,069	$	587,317	$	2,229		$	(826,235	)	$	392,896
Liabilities, Mezzanine and Stockholders’ Equity (Deficit)
Current liabilities	$	12,938		$	365,188	$	61,025	$	76,786		$	—		$	515,937
Long-term debt and capital lease obligations, net of current portion	—			—		303		1,345			—			1,648
Deferred Income tax and other non-current liabilities	40,428			—		35,422		16			—			75,866
Derivative liabilities	79			—		—		—			—			79
Total liabilities	53,445			365,188		96,750		78,147			—			593,530
Mezzanine equity	93,312			—		—		—			—			93,312
Stockholders’ equity (deficit)	55,759			61,881		490,567		(75,918		)	(826,235		)	(293,946		)
Total liabilities, mezzanine and stockholders’ equity (deficit)	$	202,516		$	427,069	$	587,317	$	2,229		$	(826,235	)	$	392,896



	BALANCE SHEET
	December 31, 2011
	Guarantor Parent Company		Issuer Subsidiary		Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Current assets	$	971	$	—	$	134,119	$	103,310		$	—		$	238,400
Property and equipment, net	16,666		—		174,564		21,406			—			212,636
Investment in subsidiaries	197,931		377,362		44,118		14,206			(633,617		)	—
Intercompany accounts	23,454		80,834		12,845		(117,133		)	—			—
Other non-current assets	1,079		11,908		42,572		7,754			(177		)	63,136
Total assets	$	240,101	$	470,104	$	408,218	$	29,543		$	(633,794	)	$	514,172
Liabilities, Mezzanine and Stockholders’ Equity (Deficit)
Current liabilities	$	48,482	$	1,565	$	78,914	$	86,362		$	—		$	215,323
Long-term debt and capital lease obligations, net of current portion	—		346,615		—		3,568			—			350,183
Deferred Income tax and other non-current liabilities	30,458		—		30,798		1,138			—			62,394
Derivative liabilities	5,778		—		—		—			—			5,778
Total liabilities	84,718		348,180		109,712		91,068			—			633,678
Mezzanine equity	83,313		—		—		—			—			83,313
Stockholders’ equity (deficit)	72,070		121,924		298,506		(61,525		)	(633,794		)	(202,819		)
Total liabilities, mezzanine and stockholders’ equity (deficit)	$	240,101	$	470,104	$	408,218	$	29,543		$	(633,794	)	$	514,172



	STATEMENT OF OPERATIONS
	Year Ended December 31, 2012
	Guarantor Parent Company			Issuer Subsidiary			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Total revenue	$	—		$	—		$	270,738		$	450,349		$	(125,263	)	$	595,824
Equity in earnings of subsidiaries	(74,575		)	—			1,263			(17,298		)	90,610			—
Expenses:
Direct operating	101			—			129,900			416,480			(122,116		)	424,365
Depreciation and amortization	1,293			—			114,087			8,722			(178		)	123,924
General and administrative	2,532			—			38,524			27,559			(3,148		)	65,467
Asset impairments	—			—			495			5,554			—			6,049
Total expenses	3,926			—			283,006			458,315			(125,442		)	619,805
Loss from operations	(78,501		)	—			(11,005		)	(25,264		)	90,789			(23,981		)
Interest income (expense), net	(10,187		)	(40,632		)	1,285			(2,330		)	—			(51,864		)
Other income (expenses), net	5,727			—			1,712			363			—			7,802
Loss before income taxes	(82,961		)	(40,632		)	(8,008		)	(27,231		)	90,789			(68,043		)
Provision for income taxes	—			—			8,478			6,440			—			14,918
Net loss	$	(82,961	)	$	(40,632	)	$	(16,486	)	$	(33,671	)	$	90,789		$	(82,961	)



	STATEMENT OF OPERATIONS
	Year Ended December 31, 2011
	Guarantor Parent Company			Issuer Subsidiary			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Total revenue	$	518		$	—		$	414,837		$	433,840		$	(85,466	)	$	763,729
Equity in earnings of subsidiaries	(216,304		)	—			(4,758		)	(58,177		)	279,239			—
Expenses:
Direct operating	25,398			—			216,813			441,400			(80,336		)	603,275
Depreciation and amortization	6,564			—			126,071			25,753			—			158,388
General and administrative	(982		)	—			39,789			41,754			(4,953		)	75,608
Asset impairments	—			—			132,376			2,380			—			134,756
Total expenses	30,980			—			515,049			511,287			(85,289		)	972,027
Loss from operations	(246,766		)	—			(104,970		)	(135,624		)	279,062			(208,298		)
Interest income (expense), net	(8,176		)	(39,323		)	607			(648		)	—			(47,540		)
Other income (expenses), net	32,889			(1,121		)	6,322			(2,265		)	—			35,825
Loss before income taxes	(222,053		)	(40,444		)	(98,041		)	(138,537		)	279,062			(220,013		)
Provision for income taxes	—			—			2,037			3			—			2,040
Net loss	$	(222,053	)	$	(40,444	)	$	(100,078	)	$	(138,540	)	$	279,062		$	(222,053	)



	STATEMENT OF OPERATIONS
	Year Ended December 31, 2010
	Guarantor Parent Company			Issuer Subsidiary			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Total revenue	$	328		$	—		$	236,697		$	374,214		$	(53,105	)	$	558,134
Equity in earnings of subsidiaries	(120,228		)	—			(46,478		)	(17,221		)	183,927			—
Expenses:
Direct operating	(2,000		)	—			134,458			376,546			(53,105		)	455,899
Depreciation and amortization	4,908			—			98,900			9,089			—			112,897
General and administrative	5,893			1,565			21,314			52,622			—			81,394
Total expenses	8,801			1,565			254,672			438,257			(53,105		)	650,190
Income (loss) from operations	(128,701		)	(1,565		)	(64,453		)	(81,264		)	183,927			(92,056		)
Interest income (expense), net	(6,033		)	(33,494		)	188			1,512			—			(37,827		)
Other income (expense), net	(9,043		)	208			1,852			2,992			—			(3,991		)
Income (loss) before income taxes	(143,777		)	(34,851		)	(62,413		)	(76,760		)	183,927			(133,874		)
Provision for income taxes	(5,093		)	14			145			9,744			—			4,810
Net loss	$	(138,684	)	$	(34,865	)	$	(62,558	)	$	(86,504	)	$	183,927		$	(138,684	)



	STATEMENT OF CASH FLOWS
	Year Ended December 31, 2012
	Guarantor Parent Company			Issuer Subsidiary			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations		Consolidated
Net cash provided by (used in) operating activities	$	(1,219	)	$	784		$	34,858		$	(3,659	)	$	—	$	30,764
Net cash provided (used in) investing activities	—			—			(38,162		)	(588		)	—		(38,750		)
Net cash used in financing activities	—			(784		)	(122		)	(2,313		)	—		(3,219		)
Net increase (decrease) in cash	$	(1,219	)	—			$	(3,426	)	$	(6,560	)	—		$	(11,205	)



	STATEMENT OF CASH FLOWS
	Year Ended December 31, 2011
	Guarantor Parent Company			Issuer Subsidiary			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations		Consolidated
Net cash provided by (used in) operating activities	$	(4,740	)	$	(24,558	)	$	62,558		$	26,214		$	—	$	59,474
Net cash provided (used in) investing activities	—			—			(67,196		)	(14,807		)	—		(82,003		)
Net cash used in financing activities	—			24,558			—			(233		)	—		24,325
Net increase (decrease) in cash	$	(4,740	)	$	—		$	(4,638	)	$	11,174		$	—	$	1,796



	STATEMENT OF CASH FLOWS
	Year Ended December 31, 2010
	Guarantor Parent Company			Issuer Subsidiary			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations		Consolidated
Net cash provided by (used in) operating activities	$	(12,630	)	$	(15,513	)	$	53,564		$	6,115		$	—	$	31,536
Net cash provided (used in) investing activities	(184,818		)	122,971			(78,166		)	(20,116		)	180,832		20,703
Net cash provided (used in) financing activities	(19,497		)	—			—			(67		)	—		(19,564		)
Net increase (decrease) in cash	$	(216,945	)	$	107,458		$	(24,602	)	$	(14,068	)	$	180,832	$	32,675