CORRESP 11 filename11.txt [BAKER BOTTS L.L.P. LOGO] 2001 ROSS AVENUE AUSTIN DALLAS, TEXAS BAKU 75201-2980 DALLAS 214.953.6500 HOUSTON FAX 214.953.6503 LONDON MOSCOW NEW YORK RIYADH WASHINGTON January 19, 2005 VIA EDGAR TRANSMISSION U.S. Securities and Exchange Commission Division of Corporate Finance 450 Fifth Street, N.W. Mail Stop 0405 Washington, D.C. 20549 Re: DAWSON GEOPHYSICAL COMPANY REGISTRATION STATEMENT ON FORM S-3 FILE NO. 333-121236 FORM 10-K FOR THE YEAR ENDED SEPTEMBER 30, 2004 FILED DECEMBER 10, 2004 FILE NO. 0-10144 DEFINITIVE PROXY STATEMENT ON SCHEDULE 14A FILED DECEMBER 10, 2004 Ladies and Gentlemen: On behalf of Dawson Geophysical Company (the "Company"), we have electronically transmitted herewith Amendment No. 1 to the above-referenced Registration Statement ("Amendment No. 1"), which has been marked to indicate the changes in the Amendment. In addition, we have today forwarded, by way of overnight delivery, five marked copies of the Amendment No. 1, c/o Jason Wynn, for the convenience of the Staff. This letter responds to the Staff's letter of comment, dated January 12, 2005, on behalf of the Company. The numbering below corresponds to the numbering used in the comment letter. General 1. COMMENT: Because some of our comments might apply to disclosure that appears in more than one place, please make corresponding changes to all affected disclosure, wherever it appears in your documents. For example, make corresponding revisions to the Risk Factors disclosure that appears in your Form 10-K. [BAKER BOTTS L.L.P. LOGO] Securities and Exchange Commission - 2 - January 19, 2005 RESPONSE: Where the staff's comments apply to more than one section of the Registration Statement, we will make the indicated change in each section. In addition, we acknowledge that a number of the staff's comments apply both to the Company's Registration Statement and to its Form 10-K. As a result, we intend to file an amendment to our Form 10-K reflecting these changes as soon as we have resolved all of the Staff's comments. 2. COMMENT: You frequently use industry or technical terms without explaining the terms to the reader. Whenever possible, provide disclosure regarding your business that will be comprehensible to those without industry expertise. For example, at page 19 of the prospectus, you refer without explanation to "vibrator energy sources" and also indicate: "Shear waves are another type of seismic energy propagation, analysis of which may allow for a more detailed picture of the earth's subsurface. Our equipment includes energy sources and geophones capable of generating and recording shear waves." RESPONSE: At the request of the Staff, we have reviewed the description of our business contained in the prospectus for industry or technical terms that might not be comprehensible to a reader without industry expertise. As a result, we have added substantial disclosure under the caption "Business Description" beginning on page 21 of Amendment No. 1 to help readers understand the Company's business and how it operates. In such disclosure and elsewhere, we have also clarified the meaning of such terms, including the meaning of "vibrator energy sources," "geophones," "shear waves," "seismic data," the "2-D" and "3-D" methods and "recording channels." FORM S-3 General 3. COMMENT: Fill in blanks, provide updated and current disclosure and supply all omitted exhibits. For example, we refer you to pages 1 (new crew scheduled for January 2005), page 8 (proceeds), page 23 (five year experience with titles or positions held by Mr. Nelson), page II-1 (estimated amounts), as well as exhibits 1.1 and 5.1. We may have additional comments once you provide this information. If any of this information might change prior to effectiveness of the registration statement, you may include brackets or other means to make this clear. [BAKER BOTTS L.L.P. LOGO] Securities and Exchange Commission - 3 - January 19, 2005 RESPONSE: We have updated the information on page 1 and elsewhere in the prospectus (on pages 2, 8, 16, 20 and 22) to reflect the fact that the Company added a tenth seismic data acquisition crew in January 2005. We have also updated the "Use of Proceeds" section on page 8 of Amendment No. 1 to reflect our current plans and intentions. Likewise, we have added the five-year experience title and position information for Mr. Nelson on page 25 of Amendment No. 1 per the Staff's request. For the Staff's information, we intend to file an additional amendment prior to circulation of a preliminary prospectus. That amendment will include numbers and disclosure relating to the Company's fiscal first quarter. Accordingly, to the extent that any blanks remain or exhibits not filed in Amendment No. 1 (other than pricing information), these will be completed or filed in the next filing. Table of Contents, page ii 4. COMMENT: The first and last sentences in the paragraph following the table are inappropriate. For example, you incorporate information by reference yet suggest that readers may only rely on the prospectus. Another example of inappropriate language is the suggestion at page 24 that the descriptions of your stock and corporate documents are incomplete, rather than making clear that you have summarized accurately the material provisions in each case. Please revise accordingly. RESPONSE: We have revised the first and last sentence of the paragraph following the Table of Contents on page ii of Amendment No. 1 to reference information incorporated by reference into the prospectus and to make it clear that readers may rely on such information as well as the information contained in the prospectus. In addition, we have revised the language in the first paragraph under the caption "Description of Our Capital Stock" on page 26 to clarify that the information presented is a summary of the material provisions of the certificate of incorporation and bylaws. Prospectus Summary, page 1 5. COMMENT: You include assertions at pages 1, 2 and 13 regarding your status as "the" leading provider, although the disclosure at page 13 includes an additional limitation on the assertion. Provide us with independent supplemental support for these assertions, and revise the disclosure as appropriate. For example, clarify whether your leadership status [BAKER BOTTS L.L.P. LOGO] Securities and Exchange Commission - 4 - January 19, 2005 is based upon total revenues, market share or some other criteria. We may have additional comments. RESPONSE: The assertions regarding the Company's status as the leading provider contained on pages 1, 14 and 20 have been revised to read substantially as follows: "We are the leading provider of onshore seismic data acquisition services in the United States as measured by the number of active data acquisition crews." We have added this disclosure to make it clear to readers that the basis for our assertion of a leading position is the number of active crews. Additionally, the Company has provided, supplementally for the staff's review, independent support for this assertion. Please find attached as Annex A a copy of World Geophysical News, Volume 16, Number 23 (December 15, 2004). World Geophysical News is widely recognized as the leading third-party publication in the seismic data acquisition industry. Page 7 of this publication demonstrates that, as of October 2004, there were 41 onshore seismic data acquisition crews operating in the United States. At this time, the Company had 9 of such crews (as reported on page 11), all of which operated onshore. The closest competitor operating in the United States, Veritas DGC, is listed (on page 12) as having 9 crews total, 2 of which are offshore crews operating in the Gulf of Mexico and not part of our market segment (see pages 14-15). All other companies operating crews in the United States onshore market are reported as having between 1 and 4 active crews. As demonstrated by the focus of this publication, the Company believes that crew count is the accepted method of recognizing leaders in the Company's industry, and is essentially representative of market share in the industry. In addition, the Company believes that the crew count measure for the seismic survey industry is comparable to "rig count" which is widely recognized as a key measure of oil and gas company strength in the drilling industry. We note that the Company also believes that it would be the leader in its industry if the measure of its leading position were in terms of revenues or recording channel count (both important factors in measuring dominance in the seismic data acquisition industry). However, because there are no independent third-party sources reporting this type of information for the industry, the Company believes that crew count is the best measure of its leading position and has reflected this in the disclosure. [BAKER BOTTS L.L.P. LOGO] Securities and Exchange Commission - 5 - January 19, 2005 6. COMMENT: Because you need to include a discussion of all material risk factors in your Risk Factors section, revise the disclosure at page 2 to eliminate the suggestion that the reader might need to read through all the materials in order to find this information. RESPONSE: Per your request, the disclosure at page 2 (suggesting that the reader might need to read through all the materials in order to find Risk Factor information) has been eliminated. Risk Factors, page 5 7. COMMENT: Eliminate language that tends to mitigate the risk you discuss. Examples include "[h]owever, we have attempted to reduce," "we have not suffered any material losses of equipment," "[w]e have not experienced any material loss," we carry "adequate insurance" and "[a]lthough such expenditures have historically not been material." Also, rather than indicating that there is no "assurance" or that you "cannot assure" a particular outcome, instead focus on the potential harm to you or this investor. RESPONSE: At the request of the Staff, we have reviewed the language contained in the "Risk Factors" section beginning on page 5 of the prospectus and have eliminated language that tends to mitigate the risks discussed. We have also revised the disclosure to focus on the potential harm to us or investors rather than indicating that we cannot assure a particular outcome. These revisions have been reflected in changes to the first, fourth, sixth, eighth, ninth, tenth and eleventh risk factors. 8. COMMENT: Focus your subheadings and text to identify the risk and potential harm concisely and precisely. You provide excess detail in the first risk factor, for example. Several captions merely state facts and fail to describe the risk that follows, including without limitation, "Our business is dependent on prices for oil and gas," "We face intense competition in our business," "Capital requirements for our operations are large and our ability to finance these requirements could be affected" and "Certain provisions of our charter and bylaws and our shareholder rights plan may make it difficult." [BAKER BOTTS L.L.P. LOGO] Securities and Exchange Commission - 6 - January 19, 2005 RESPONSE: At the request of the Staff, we have examined the captions used for each of the risk factors and modified certain of those captions to ensure that the precise risk identified by the Company, as well as the possible consequence of the risk should it materialize, are clearly stated. We have also revised the first risk factor to eliminate excess detail. The old and new captions for the renamed risk factors are restated below: Old Caption New Caption OUR BUSINESS IS DEPENDENT ON PRICES IF OIL AND GAS PRICES OR THE LEVEL OF FOR OIL AND GAS AND THE LEVEL OF CAPITAL EXPENDITURES BY OIL AND GAS CAPITAL EXPENDITURES BY OIL AND GAS COMPANIES WERE TO DECLINE, DEMAND FOR COMPANIES. OUR SERVICES WOULD DECLINE AND OUR RESULTS OF OPERATIONS WOULD BE ADVERSELY AFFECTED. WE FACE INTENSE COMPETITION IN OUR WE FACE INTENSE COMPETITION IN OUR BUSINESS. BUSINESS THAT COULD RESULT IN DOWNWARD PRICING PRESSURE AND THE LOSS OF MARKET SHARE. WE MAY BE UNABLE TO ATTRACT AND RETAIN WE MAY BE UNABLE TO ATTRACT AND RETAIN KEY EMPLOYEES WHICH COULD ADVERSELY SKILLED AND TECHNICALLY KNOWLEDGEABLE AFFECT OUR BUSINESS. EMPLOYEES WHICH COULD ADVERSELY AFFECT OUR BUSINESS. CAPITAL REQUIREMENTS FOR OUR CAPITAL REQUIREMENTS FOR OUR OPERATIONS ARE LARGE AND OUR ABILITY OPERATIONS ARE LARGE. IF WE ARE UNABLE TO FINANCE THESE REQUIREMENTS COULD BE TO FINANCE THESE REQUIREMENTS OUR AFFECTED. ABILITY TO CONTINUE OUR EXPANSION AND MAINTAIN OUR PROFITABILITY COULD BE AFFECTED. TECHNOLOGICAL CHANGE IN OUR BUSINESS TECHNOLOGICAL CHANGE IN OUR BUSINESS CREATES RISKS OF TECHNOLOGICAL CREATES RISKS OF TECHNOLOGICAL OBSOLESCENCE AND REQUIREMENTS FOR OBSOLESCENCE AND REQUIREMENTS FOR FUTURE CAPITAL EXPENDITURES WHICH WE FUTURE CAPITAL EXPENDITURES. IF WE ARE MAY NOT BE ABLE TO MEET. UNABLE TO KEEP UP WITH THESE TECHNOLOGICAL ADVANCES, WE MAY NOT BE ABLE TO COMPETE EFFECTIVELY. CERTAIN PROVISIONS OF OUR CHARTER AND CERTAIN PROVISIONS OF OUR CHARTER AND BYLAWS AND OUR SHAREHOLDER RIGHTS PLAN BYLAWS AND OUR SHAREHOLDER RIGHTS PLAN MAY MAKE IT DIFFICULT FOR A THIRD MAY MAKE IT DIFFICULT FOR A THIRD PARTY TO ACQUIRE US. PARTY TO ACQUIRE US, EVEN IN SITUATIONS THAT MAY BE VIEWED AS DESIRABLE BY OUR SHAREHOLDERS. [BAKER BOTTS L.L.P. LOGO] Securities and Exchange Commission - 7 - January 19, 2005 9. COMMENT: We note as a part of your operations you must obtain right of way usage from both public and private land and/or mineral owners. Please supplementally tell us how you account for the acquired rights of way usage and how they are presented in the financial statements. RESPONSE: Although a small percentage of clients opt to obtain such rights of way directly, the Company frequently obtains such rights of way for its clients. However, if payments are required or other costs are incurred in obtaining rights of way usage, these costs are reimbursed by the clients. Accordingly, the expense of these rights of way are included in the Company's revenues and in its operating expenses. We may be unable to attract and retain key employees, page 6 10. COMMENT: Disclose if any of your "key personnel" are not under contract, and make clear how many employees you consider to be "key." If you do not have "key person" insurance for these individuals, so indicate. RESPONSE: Because the Company does not consider any particular individual to be "key," we have revised the risk factor to eliminate the reference to "key personnel" and to focus the risk on the Company's need to find skilled and technically knowledgeable employees generally. We have also revised the risk factor to disclose that none of the Company's employees are under employment contracts and that the Company has no key man insurance. Selected Financial Data, page 11 11. COMMENT: Indicate the information you are presenting is a summary of the selected financial data required by Item 301 of Regulation S-K, or alternatively, include selected financial data for the two years preceding September 30, 2002. RESPONSE: Per your request, we have indicated on page 11 that the information presented is a summary of the selected financial data required by Item 301 of Regulation S-K. [BAKER BOTTS L.L.P. LOGO] Securities and Exchange Commission - 8 - January 19, 2005 Management's Discussion and Analysis of Financial Condition and results of Operations, page 13 Fiscal Year Ended September 30, 2004 Versus Fiscal year Ended September 30, 2003, page 13 12. COMMENT: Your discussion provides limited insight into the underlying reasons for the variances depicted in you results of operations. Therefore, the extent to which your financial information is indicative of expected future results is unclear. Your disclosures should provide information about the quality and potential variability of earnings and cash flow, so that readers may ascertain the likelihood that past performance is indicative of future performance. Please revise your results of operations discussion to include the facts and circumstances underlying material trends, uncertainties, demands, events and commitments. Please refer to Instructions 3 and 4 to Paragraph (a) of Items 303 of Regulation S-K, and FRC Section 501.12.b.4 for further guidance. Additionally, when you attribute changes in significant items to more than one factor or element, breakdown and quantify the impact of each factor or element. Please refer to FRC Section 501.04 for further guidance. RESPONSE: In response to the Staff's comment, the disclosure in the MD&A under the caption "Overview" and "Fiscal 2004 Highlights" has been revised to focus readers on the principal trends, etc. affecting our results of operations. In the discussion of its results of operations, the Company has described that its fiscal 2004 revenues were greater than fiscal 2003 revenues as a result of increased demand for its services which allowed the Company to (1) field three new data acquisition crews, (2) obtain price improvements in its markets and (3) negotiate favorable contract provisions. However, the Company is unable to quantify with precision the actual dollar amount of each factor. While the Company is confident in identifying these effects, the calculation of the actual impact is not so clear and depends on the methodology used. Moreover, the Company believes that ascribing a dollar amount to these factors would lead investors to believe that such dollar amounts were as reliable as the other amounts disclosed in results of operations, which is not the case. As a result, the Company has disclosed that these factors affected its revenues, but has not ascribed a dollar number to each of the factors. [BAKER BOTTS L.L.P. LOGO] Securities and Exchange Commission - 9 - January 19, 2005 Liquidity and Capital Resources, page 16 13. COMMENT: The discussion of your operating and investing activities appears to be brief and focuses on changes that are evident in your consolidated statements of cash flows. For example, your discussion of cash provided by operating activities , activities in the short-term investment portfolio and capital expenditures essentially reiterates the basic changes depicted in your consolidated statements of cash flows. Because you provide only limited insight into the reasons underlying the variances identified, the indicative value of your reported results is unclear. You provide no or limited discussion of the underlying drivers (e.g., cash receipts from the sale of goods and services and cash payments to acquire materials or labor). Please refer to the guidance in FRC Section 501.13, and revise your disclosure accordingly. RESPONSE: In response to the Staff's comment, we have added a new introductory section in Liquidity and Capital Resources to discuss the principal factors underlying the Company's liquidity position. 14. COMMENT: Please include a tabular disclosure of your contractual obligations, such as your operating lease and other obligations. Please refer to Instruction 5 to Paragraph (a) of Item 303 of Regulation S-K. RESPONSE: We have included the tabular disclosure of contractual obligations as required by Item 303 of Regulation S-K. Critical Accounting Policies, page 16 15. COMMENT: The disclosures of your critical accounting policies appear to be more descriptive of the accounting policies utilized, rather than any specific uncertainties underlying your estimates. These critical accounting policies appear to have critical judgment and estimation attributes, but the disclosures you provide do not sufficiently address these attributes. [BAKER BOTTS L.L.P. LOGO] Securities and Exchange Commission - 10 - January 19, 2005 Please revise your disclosures to address the material implications of the uncertainties that are associated with the methods, assumptions and estimates underlying your critical accounting estimates. Specifically, you should provide the following: (a) An analysis of the uncertainties involved in applying the principle and the variability that is reasonably likely to result from its application. (b) An analysis of how you arrived at the measure and how accurate the estimate or underlying assumptions have been in the past. (c) An analysis of your specific sensitivity to change based on outcomes that are reasonably likely to occur and have a material effect. Please refer to FRC Section 501.14 for further guidance. RESPONSE: In response to the Staff's comment, the discussion of our critical accounting policies on page 17 and 18 has been expanded. 16. COMMENT: In addition, it would appear you should address in your critical accounting policies discussion the estimates, variables and assumptions you utilize to determine your income tax provision. In this regard, we note a change in these attributes resulted in the elimination of your valuation allowance in 2004. RESPONSE: We have added a new section entitled "Tax Accounting" in the discussion of the Company's critical accounting policies to address the matters raised in the Staff's comment. Underwriting, page 26 17. COMMENT: You include a number of statements purporting to limit or qualify the obligation of your underwriter to purchase shares, including reference to approval by "its counsel," and you indicate it might reject an order in whole or in part. Revise to make clear that you will amend the disclosure as necessary to reflect any material changes to the arrangements you describe. Also describe in necessary detail any provisions that are not commonly found in underwriting agreements. In the alternative, eliminate any potential for the reader to infer that the underwriter might not be fully committed once the agreement has been signed. [BAKER BOTTS L.L.P. LOGO] Securities and Exchange Commission - 11 - January 19, 2005 RESPONSE: The Company has revised its disclosure to make it clear that the Registration Statement will be amended to reflect any material changes to the underwriting arrangements. The Company does not believe that the Underwriting Agreement contains any provisions that are not commonly found in underwriting agreements. The Company has also revised the Registration Statement to explain that the obligation of the underwriters to purchase and accept delivery of the shares of common stock is subject to customary closing conditions. These customary closing conditions include an opinion of counsel. The Company has revised the Registration Statement to indicate that the Underwriters might reject an order from their customers in whole or in part. The ability of the Underwriters to reject an order from their customers does not effect the underwriting arrangements between the Company and the Underwriters. Electronic Distribution, page 28 18. COMMENT: The second paragraph includes internally inconsistent and inappropriate disclosure. For example, you suggest that, among other things, "the information on the underwriter's website . . . has not been approved or endorsed by us or the underwriter . . . and should not be relied upon . . . " Please revise accordingly. RESPONSE: The Company believes that the disclosure in the second paragraph conveys the appropriate information. Any information other than the prospectus that is maintained on the underwriters' or any selling group member's websites is not part of the prospectus or the registration statement; therefore, neither the Company nor the Underwriters are required to approve or endorse the information. The investors should not rely on any information contained in the websites other than the prospectus in electronic format. Financial Statements, page F-1 Note 1 - Summary of Significant Accounting Policies, page F-7 Revenue Recognition, page F-8 19. COMMENT: On page 20 you indicate you provide services under either a turnkey agreement or a term agreement. Tell us and disclose in further detail how you recognize revenue under each of these types of contracts. [BAKER BOTTS L.L.P. LOGO] Securities and Exchange Commission - 12 - January 19, 2005 RESPONSE: The disclosure on page 17 under "Revenue Recognition" and in Note 1 on F-8 has been revised to reflect that revenues are recognized only when services are performed under both the Company's "turnkey" and "term" form of agreements. Note 3 - Property, Plant and Equipment, page F-10 20. COMMENT: Tell us what the property, plant and equipment amount you refer to as "Energy sources" represents. RESPONSE: The property, plant and equipment discussed under the caption "Energy Sources" consist of the vibrator energy sources used in seismic surveys and discussed in the "Business" section. We have revised the table caption in Note 3 on page F-10 to disclose that the Company is referring to these vibrator energy sources. Note 8- Major Customers, page F-13 21. COMMENT: Disclose the total amount of revenues from each major customer as required by paragraph 39 of SFAS 131. RESPONSE: We have revised Note 8 to the Financial Statements on page F-14 to disclose the percentages of revenue from each major customer in 2004. Exhibits and Financial Statement Schedules, page II-2 22. COMMENT: To the extent that you incorporate any exhibits by reference from previously filed documents with the Commission, identify the filing date of the document from which you are incorporating by reference. RESPONSE: We have revised the information on page II-2 under Item 16 (Exhibits and Financial Statement Schedules) and in the Index to Exhibits to identify the filing date of the documents from which exhibits are incorporated by reference. [BAKER BOTTS L.L.P. LOGO] Securities and Exchange Commission - 13 - January 19, 2005 FORM 10-K FOR THE PERIOD ENDED SEPTEMBER 30, 2004 Exhibits, Financial Statement Schedules and Reports on Form 8-K, page 12 23. COMMENT: Please include a schedule of the valuation and qualifying account for the accounts receivable valuation allowance and other accounts that would qualify. Refer to Rules 5-04(c) and 12-09 of Regulation S-X. RESPONSE: We have supplementally included as Annex B the schedule of valuation and qualifying accounts requested by the Commission and the Company will file the schedule with its amendment to the 10-K. 24. COMMENT: File as exhibits all employment and other agreements with any of your executive officers, as Item 601(b)(10) of Regulation S-K requires. Ensure that you discuss all of the material terms of any employment agreements you have with executive officers. Also, if there have been any material changes to the form of "master geophysical data acquisition agreement" that you filed as an exhibit more than a year ago, please file the new agreement as an exhibit rather than incorporating by reference the outdated version. RESPONSE: The Company has not entered into any employment or other agreements with any of its executive officers. The Company also confirms that there have been no changes to the form of "master geophysical data acquisition agreement" that was filed as Exhibit 10 to the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2003 filed on December 11, 2003 (File No. 000-10144). DEFINITIVE PROXY STATEMENT ON SCHEDULE 14A FILED DECEMBER 10, 2004 Security Ownership, page 9 25. COMMENT: If known or readily ascertainable, disclose the natural person(s) who exercise voting and/or investment power with respect to each of the entities you list in the table. Include appropriate entries in the table, with explanatory notes if appropriate. See Exchange Act Rule 13d-3. [BAKER BOTTS L.L.P. LOGO] Securities and Exchange Commission - 14 - January 19, 2005 RESPONSE: The information regarding the natural person(s) who exercise voting and/or investment power with respect to each of the entities listed in the table are not known or readily ascertainable by the Company. We believe that we have included appropriate entries in the table, with explanatory footnotes, for each such entity. Consistent with our disclosure obligations under Item 403 of Regulation S-K, we have included all information available from the publicly filed documents (the Schedule 13G or Form 13F-HR) for each such entity as of the most recent practicable date. In only one instance did an entity (Athena Capital Management, Inc.) provide information regarding a natural person (David P. Cohen) who was deemed to be a beneficial owner of the shares represented in the table. We have already included this information in footnote 6 to the table. Accordingly, we believe that no changes to the table are necessary. Please do not hesitate to contact me at 214.953.6419, or my partner Neel Lemon at 214.953.6954, if we can be of any further assistance in reviewing the above responses. Very truly yours, /s/ Sarah Rechter Sarah Rechter Annex A - Industry support - Comment No. 5 Annex B - Valuation Account Schedule - Comment No. 23 cc: L. Decker Dawson Stephen C. Jumper Christina W. Hagan Nicholas C. Taylor, Esq. Thomas P. Mason, Esq. Neel Lemon, Esq. Annex A (GLOBE GRAPHIC) World Geophysical News (GLOBE GRAPHIC) VOLUME 16, NUMBER 23 DECEMBER 15, 2004 U.S. SEISMIC TRENDS SHOW BIG CHANGES IN 2004 The map of seismic crew activity in the United States changed this year. Long dominated by work on- and offshore Texas and Louisiana, seismic surveys shifted north in 2004. The year ends with The Rockies and Mid-Continent regions topping the list with the largest number of active crews. As the Gulf of Mexico recovers from a battering of multiple hurricanes, its vessel count has dwindled from 10 a year ago to seven this month. Onshore, the Gulf Coast Region and the Southwest Region, which last December accounted for a total of 15 crews, now host 13 active surveys. Meanwhile, 11 crews are at work in the Mid-Continent Region, up from just 8 last year at this time. And 8 crews are at work in the Rockies - more than double last December's tally of 3 active crews. For details and specific current locations, see pages 13-15. REMINDER: THERE IS NO JANUARY 1 ISSUE OF "WORLD GEOPHYSICAL NEWS." PUBLICATION WILL RESUME ON JANUARY 15, 2005. MEANWHILE, WE WISH YOU ALL A VERY HAPPY HOLIDAY SEASON AND A PROSPEROUS NEW YEAR! Inside This Issue: Statistical Summaries...............................3 Global Activity..................................3 U.S. Activity....................................8 Contractor Activity.............................11 U.S. Crews Working Crews...................................13 Available Crews.................................16 International Crews Working Crews...................................17 Available Crews.................................27
The International seismic crew count is UNCHANGED... at 152 from month-ago. Details inside. (DOWN ARROW GRAPHIC)(UP ARROW GRAPHIC) The U.S. seismic crew count is DOWN...by 1 to 48 from month-ago. Details inside. (DOWN ARROW GRAPHIC) (IHS ENERGY LOGO) IHS ENERGY(TM) ANYWHERE YOU GO, THE POWER TO KNOW.(TM) 15 Inverness Way East, Englewood, CO 80112 303/736-3000 Copyright 2004. All rights reserved. IHS Energy. All trademarks belong to IHS Energy unless otherwise noted. WORLD GEOPHYSICAL NEWS - CUSTOMIZED - GEOPHYSICAL CREW COUNTS available now! CALL STEVE TRAMMEL 1-800-OIL DATA WORLD GEOPHYSICAL NEWS SUBSCRIPTION FORM I want to subscribe to WORLD GEOPHYSICAL NEWS for one year, billed __$542 for customers inside U.S. (2nd class) __print __email __disk __$642 for customers outside the U.S. (1st class) __print __email __disk __$732 for combination print/electronic subscription - ship both (U.S.) __$832 for combination print/electronic subscription - ship both (not U.S.) For combination subscribers: __e-mail or __disk Name ___________________________________________________________________________ Title __________________________________________________________________________ Company ________________________________________________________________________ Mailing address ________________________________________________________________ ________________________________________________________________________________ City, State, ___________________________________________________________________ Country ________________________ Zip/Postal Code _______________________________ Phone number ______________________________ Fax ________________________________ MAIL OR FAX TO: WORLD GEOPHYSICAL NEWS, IHS Energy Circulation Dept., 15 Inverness Way E, Englewood CO 80112, USA. Fax: 303/736-3605. PHONE ORDERS ALSO TAKEN: 1-800-OIL DATA, ext. 3589 (inside the continental U.S.) or 303/736-3589 outside the U.S. e-mail news to World Geophysical News WORLD GEOPHYSICAL NEWS is published twice monthly (except January l) by IHS ENERGY. The material and data contained herein have been compiled for the exclusive use of subscribers of IHS Energy, and no part thereof shall be reproduced, quoted or published in any manner without the written consent of IHS Energy. Editor Dana Cain Contributing Ed. Steve Trammel Programmer Laura Hagan Consultant Cindy Speer We want to provide the industry with accurate statistics on seismic and nonseismic geophysical activity, worldwide. If you know of any crews not being reported, please call us toll free at 1-800-OILDATA. Note: While our sources are extremely reliable, some crews move within our two-week reporting period. We cannot, therefore, guarantee all information. World Geophysical News (ISSN 1053-9859) (Subscriptions: $542 per year for customers inside the U.S.; $642 annually for customers outside the U.S.) Published by IHS Energy (twice monthly except monthly in January). 15 Inverness Way E, Englewood CO 80112-5776. Periodicals postage paid at Englewood CO 80112 and additional offices. POSTMASTER: Send address changes to: World Geophysical News, IHS Energy, 15 Inverness Way E, Englewood CO 80112-5776. pg 2...Dec. 15, 2004 WORLD GEOPHYSICAL NEWS Statistical Summaries: Global Activity World Region Crew Counts*
Seismic Working December 15, 2004 Month Year Work Avail Total Ago Ago Africa 27 19 46 26 28 Canada 19 18 37 15 19 CIS 19 22 41 19 28 Europe 7 19 26 10 13 Far East 45 44 89 45 38 Middle East 20 20 40 21 15 Latin America 15 26 41 16 15 United States 48 13 61 49 41 Totals 200 181 381 201 197
* Counts for CIS, China and India are estimates based on partial data. World Share of Geophysical Activity (PIE CHART) United States 24% Far East 22% Africa 13% Middle East 10% CIS 10% Europe 8% Latin America 8% Europe 4% Dec, 15, 2004...pg 3 WORLD GEOPHYSICAL NEWS Seismic Crew Counts by Country (excluding U.S.)
Seismic Working December 15, 2004 Month Year Work Avail Total Ago Ago Algeria 9 2 11 9 11 Chad 1 0 1 1 0 Congo 0 0 0 0 0 Egypt 0 4 4 1 0 Gabon 0 1 1 0 0 Libya 7 1 8 7 3 Morocco 0 1 1 0 0 Nigeria 1 3 4 1 3 Tunisia 1 1 2 0 0 Alberta 13 13 26 13 17 British Columbia 1 3 4 0 0 New Brunswick 0 0 0 O 1 Nova Scotia 0 1 1 1 0 Saskatchewan 3 1 4 1 1 Azerbaijan 0 0 0 0 0 Kazakhstan 1 1 2 1 2 Kyrgystan 1 0 1 1 0 Russia 16 12 28 16 15 Ukraine 0 0 0 0 0 Uzbekistan 0 4 4 0 4 Albania 0 1 1 0 1 Austria 0 1 1 0 1 Bulgaria 0 1 1 0 0 Czech Republic 0 0 0 0 0 England 1 0 1 1 0 Germany 0 1 1 1 0 Hungary 2 1 3 2 1 Lithuania 0 2 2 0 1 Poland 3 3 6 3 4 Romania 0 3 3 0 3 Slovakia 0 0 0 1 0 Yugoslavia 0 0 0 0 0 Australia 1 4 5 3 1 Bangladesh 1 0 1 1 0 China 14 0 14 14 15 India 7 23 30 7 3 Indonesia 3 7 10 3 1 Malaysia 0 0 0 0 1 New Zealand 1 0 1 0 0 Papua New Guinea 0 0 0 0 0 Taiwan 0 0 0 0 0 Iran 3 6 9 4 0 Iraq 0 0 0 0 0 Oman 3 2 5 3 3 Pakistan 8 2 10 8 7 Saudi Arabia 0 4 4 0 0 Turkey 4 1 5 4 0 United Arab Emirates 0 0 0 0 1
pg 4...Dec. 15, 2004 WORLD GEOPHYSICAL NEWS Seismic Crew Counts by Country (continued) (excluding U.S.)
Seismic Working December 15, 2004 Month Year Work Avail Total Ago Ago Yemen 1 2 3 1 2 Argentina 3 8 11 4 6 Bolivia 0 1 1 1 0 Brazil 1 0 1 1 0 Chile 1 0 1 0 0 Colombia 1 1 2 1 1 Ecuador 2 1 3 2 1 Mexico 2 2 4 2 1 Peru 0 0 0 0 0 Venezuela 1 2 3 1 0 Sub-Totals 117 127 244 120 111 African Waters 8 6 14 7 11 Canadian Waters 2 0 2 0 0 CIS Waters 1 5 6 1 7 European Waters 1 6 7 2 2 Far Eastern Waters 18 10 28 17 17 Middle Eastern Waters 1 3 4 1 2 Latin American Waters 4 11 15 4 6 Sub-Totals 35 41 76 32 45 Totals 152 168 320 152 156
* Canadian counts are shown by province. Dec. 15, 2004...pg 5 WORLD GEOPHYSICAL NEWS Historical Monthly Crew Counts Western Hemisphere (LINE CHART) Historical Monthly Crew Counts Europe, Africa, Middle East (LINE CHART) pg 6...Dec. 15, 2004 WORLD GEOPHYSICAL NEWS Historical Monthly Crew Counts - Far East/Australia (LINE CHART) Global Onshore/Offshore Comparison (BAR CHART) 3-D vs. 2-D Survey Summary
4-D 3-D 2-D Unknown Total Africa 0 10 9 0 19 Canada 0 10 7 0 17 CIS 0 3 15 0 18 Europe 0 2 4 0 6 Far East 0 8 17 2 27 Middle East 0 4 15 0 19 Latin America 0 10 1 0 11 Sub-Totals 0 47 68 2 117 Africa Offshore 0 4 4 0 8 Canada Offshore 0 1 1 0 2 CIS Offshore 0 1 0 0 1 Europe Offshore 0 1 0 0 1 Far East Offshore 0 10 8 0 18 Middle East Offshore 0 0 1 0 1 Latin America Offshore 1 1 2 0 4 Sub-Totals 1 18 16 0 35 Totals 1 65 84 2 152
Dec. 15, 2004...pg 7 WORLD GEOPHYSICAL NEWS U.S. Activity Regional Crew Counts
Seismic Working December 15, 2004 Month Year Work Avail Total Ago Ago West Coast Region 0 0 0 1 2 Alaska 2 2 4 2 0 Rockies Region 8 5 13 10 3 Mid-Continent 11 0 11 9 8 Southwest Region 6 0 6 6 9 Gulf Coast Region 7 3 10 9 6 Ark-La-Tex 6 0 6 4 1 Illinois Basin 1 0 1 1 1 Michigan Basin 0 0 0 1 0 Appalachian Basin/Northeas 0 0 0 1 1 Offshore 7 3 10 5 10 Totals 48 13 61 49 41
Regional Comparison of Active Crews (BAR CHART) pg 8...Dec. 15, 2004 WORLD GEOPHYSICAL NEWS State Crew Counts
SEISMIC WORKING DECEMBER 15, 2004 MONTH YEAR WORK AVAIL TOTAL AGO AGO Alaska 2 2 4 2 0 California 0 0 0 1 2 Colorado 2 2 4 2 1 Gulf of Mexico 7 3 10 5 10 Illinois 1 0 1 1 1 KANSAS 6 0 6 4 5 Louisiana - South 2 1 3 2 3 Michigan 0 0 0 1 0 Montana 0 2 2 0 0 New Mexico - Southeast 1 0 1 1 2 North Dakota 1 0 1 1 0 Ohio 0 0 0 1 1 Oklahoma 3 0 3 4 3 South Dakota 0 0 0 0 1 Texas - East 6 0 6 4 1 Texas - West 5 0 5 5 7 Texas Gulf Coast 5 2 7 7 3 Texas Panhandle 2 0 2 1 0 Utah 3 1 4 4 0 Wyoming 2 0 2 3 1 Totals 48 13 61 49 41
U.S. 3-D vs. 2-D Survey Summary Alaska 0 2 0 0 2 Colorado 0 1 1 0 2 Gulf of Mexico 0 4 3 0 7 Illinois 0 0 1 0 1 Kansas 0 3 3 0 6 Louisiana - South 0 2 0 0 2 New Mexico - SE 0 1 0 0 1 North Dakota 0 1 0 0 1 Oklahoma 0 2 1 0 3 Texas - East 0 6 0 0 6 Texas - West 0 3 2 0 5 Texas Gulf Coast 0 5 0 0 5 Texas Panhandle 0 2 0 0 2 Utah 0 3 0 0 3 Wyoming 0 2 0 0 2 Totals 0 37 11 0 48
Dec. 15, 2004...pg 9 WORLD GEOPHYSICAL NEWS Seismic Breakdown by State
DYNAMITE VIBROSEIS OTHER WORK AVAIL TOTAL WORK AVAIL TOTAL WORK AVAIL TOTAL Alaska 1 0 1 1 2 3 0 0 0 Colorado 2 0 2 0 2 2 0 0 0 Gulf of Mexico 0 0 0 0 0 0 7 3 10 Illinois 1 0 1 0 0 0 0 0 0 Kansas 0 0 0 5 0 5 1 0 1 Louisiana - South 2 1 3 0 0 0 0 0 0 Montana 0 0 0 0 1 1 0 1 1 New Mexico - SE 0 0 0 1 0 1 0 0 0 North Dakota 0 0 0 1 0 1 0 0 0 Oklahoma 2 0 2 1 0 1 0 0 0 Texas - East 2 0 2 4 0 4 0 0 0 Texas - West 4 0 4 1 0 1 0 0 0 Texas Gulf Coast 3 2 5 2 0 2 0 0 0 Texas Panhandle 0 0 0 2 0 2 0 0 0 Utah 1 1 2 1 0 1 1 0 1 Wyoming 0 0 0 2 0 2 0 0 0 Totals 18 4 22 21 5 26 9 4 13
pg 10...Dec. 15, 2004 WORLD GEOPHYSICAL NEWS Contractor Activity
UNITED LATIN MIDDLE FAR STATES CANADA AMERICA EUROPE AFRICA EAST EAST CIS TOTAL AGESCO 0 0 0 0 3 0 0 0 3 Bashneftegeofizikia 0 0 0 0 0 0 0 3 3 Basin Geo. 1 0 0 0 0 0 0 0 1 Bur. Geophys. Prosp. 0 0 1 0 3 2 0 0 6 Breckenridge Exp 2 0 0 0 0 0 0 0 2 CGG 0 0 0 0 2 0 2 0 4 Fugro (Chance) 2 0 2 0 0 0 0 0 4 Conquest 0 4 0 0 0 0 0 0 4 China Offshore Oil 0 1 0 0 0 0 3 0 4 Dank 0 0 0 0 0 0 0 1 1 Daqing Geophysical 0 0 0 0 0 0 1 0 1 Datum 0 2 0 0 0 0 0 0 2 Dawson Geophysical 9 0 0 0 0 0 0 0 9 Eagle Geophysical 0 2 0 0 0 0 0 0 2 Elnusa 0 0 0 0 0 0 2 0 2 ENAGEO 0 0 0 0 8 0 0 0 8 Fairfield 2 0 0 0 0 0 0 0 2 Fugro-Geoteam 0 0 0 0 1 1 0 0 2 Geofizyka Krakow 0 0 0 2 0 0 0 0 2 Grant/Solid State 1 0 4 0 0 0 2 0 7 Great Lakes 1 0 0 0 0 0 0 0 1 Geophysical Svcs Ltd 0 0 0 1 0 0 0 0 1 GSI 0 1 0 0 0 0 0 0 1 GeoStrata 0 2 0 0 0 0 0 0 2 Geofizyka Torun 0 0 0 2 0 0 0 0 2 Henan Explor. Bureau 0 0 0 0 0 0 3 0 3 Intl Mining Consult. 0 0 0 1 0 0 0 0 1 Oil India 0 0 0 0 0 0 1 0 1 Integrated Data Svcs 0 0 0 0 1 0 0 0 1 Irkutskgeofizika 0 0 0 0 0 0 0 2 2 JiangHan Geophysical 0 0 0 0 0 0 2 0 2 JOECO, SINOPEC 0 0 0 0 0 0 1 0 1 Kyrgyzneftgeofizika 0 0 0 0 0 0 0 1 1 La Mesa Geophysical 1 0 0 0 0 0 0 0 1 LARGE 0 0 0 0 0 0 1 0 1 Lebap Expedition 0 0 0 0 0 1 0 0 1 Lockhart Geophysical 4 0 0 0 0 0 0 0 4 MultiWave Geophys. 0 0 0 0 0 0 1 0 1 Nageco 0 0 0 0 2 0 0 0 2 NIOC 0 0 0 0 0 1 0 0 1 Norcana 0 2 0 0 0 0 0 0 2 Norex 0 1 0 0 0 0 0 0 1 OESCO 0 0 0 0 0 2 0 0 2 OSS 0 0 0 0 1 0 0 0 1 OGDC 0 0 0 0 0 7 0 0 7 ONGC 0 0 0 0 0 0 6 0 6 Paragon Geophysical 2 0 0 0 0 0 0 0 2
Dec. 15, 2004...pg 11 WORLD GEOPHYSICAL NEWS Contractor Activity (continued)
United Latin Middle Far States Canada America Europe Africa East East CIS Total Perneftgeofizika 0 0 0 0 0 0 0 4 4 Petro-Alliance Svc. 0 0 0 0 0 0 0 1 1 PGS Exploration 3 0 2 1 1 0 1 0 8 Polaris 0 1 0 0 0 0 0 0 1 Profile 0 1 0 0 0 0 0 0 1 Quantum 2 0 0 0 0 0 0 0 2 Racal/Thales Survey 1 0 0 0 0 0 0 0 1 Samaraneftegazgeofiz 0 0 0 0 0 0 0 1 1 Saratov Geophysical 0 0 0 0 0 0 0 1 1 Shanghai Offshore 0 0 0 0 0 0 2 0 2 Sichuan Petroleum 0 0 0 0 0 0 4 0 4 Spetsgeofizika 0 0 0 0 0 0 0 1 1 Subsurface Explor. 2 0 0 0 0 0 0 0 2 Terrex Seismic 0 0 0 0 0 0 1 0 1 Tesla 1 2 0 0 0 0 0 0 3 TGS-NOPEC 0 0 0 0 1 0 2 0 3 Tidelands 3 0 0 0 0 0 0 0 3 Trace 1 0 0 0 0 0 0 0 1 Tuha Geophysical 0 0 0 0 0 0 3 0 3 Turkiye Petrolleri 0 0 0 0 0 3 0 0 3 Tyumenneftegazgeofiz 0 0 0 0 0 0 0 2 2 Velseis 0 0 0 0 0 0 1 0 1 Veritas DGC 9 0 2 0 1 2 3 0 17 Volgogradneftegazgeo 0 0 0 0 0 0 0 1 1 Vostokgeologiya 0 0 0 0 0 0 0 1 1 Western GECO 0 0 4 0 3 1 3 0 11 Wooten & Associates 1 0 0 0 0 0 0 0 1 Totals: 48 19 15 7 27 20 45 19 200
pg 12...Dec. 15, 2004 WORLD GEOPHYSICAL NEWS U.S. CREW ACTIVITY REPORT WORKING CREWS
SOURCE EQUIPMENT TOWN BASE COMMENTS CONTRACTOR CREW CHANNELS COVERAGE SURVEY AREA OPERATOR ---------- ---- -------- -------- ----------- -------- Alaska Alaska Veritas DGC 21 Dynamite 3-D RSR Prudhoe &2800 Chan Veritas DGC 25 Vibroseis 3-D MRX Vibroseis Anchorage &1200 Chan Rockies Region Colorado Tesla 4 Dynamite SN-Eagle 88 2-D&& Veritas DGC 24 Dynamite 3-D I/O System Two Rifle Garfield &3700 Chan County North Dakota Grant/Solid State 953 Vibroseis 3-D MRX-I/O System Two Bowman County &6000 Chan Utah Dawson Geophysical 21 Vibroseis 3-D I/O System Two Sevier County &4000 Chan Dawson Geophysical 27 Dynamite proprietary 3-D&& Veritas DGC 41 Vib/Dyna 3-D I/O RSR Vernal Uintah &2700 Chan County Wyoming Dawson Geophysical 19 Vibroseis 3-D I/O System Two &5000 Chan PGS Exploration 330 Vibroseis 3-D I/O RSR Riverton Fremont &4000 Chan County Mid-Continent Kansas La Mesa Geophysical 1 ** Vibroseis 2-D weight drop Hodgeman County new && 72 Chan site Lockhart Geophysica 1 ** Vibroseis 3-D Ellis County new &&560 Chan site Lockhart Geophysica 2 ** Vibroseis 3-D Russell County new &&120 Chan site Lockhart Geophysica 3 ** Vibroseis 2-D digipulse weight dro Norton County new &&120 Chan site Lockhart Geophysica 4 ** Vibroseis ARAM Ness County new 3-D && site Paragon Geophysical 1 Vib/Dyna Sercel 408 UL 2-D && Oklahoma Paragon Geophysical 2 Dynamite I/O System II, DFS V 2-D&& Tidelands 330 ** Dynamite 3-D Opseis Eagle transition zone new &2000 Chan Carter County site Shallow Waters Veritas DGC 23 Vibroseis 3-D MRX Vibroseis Poteau Haskell &4500 Chan County Texas Panhandle Dawson Geophysical 22 Vibroseis 3-D I/O system Two Hutchinson County &4000 Chan Subsurface Explor. 43 Vibroseis 3-D Briscoe County &&640 Chan Dec. 15, 2004 ... pg 13
WORLD GEOPHYSICAL NEWS U.S. CREW ACTIVITY REPORT WORKING CREWS
SOURCE EQUIPMENT TOWN BASE COMMENTS CONTRACTOR CREW CHANNELS COVERAGE SURVEY AREA OPERATOR ---------- ---- -------- -------- ----------- -------- Southwest Region New Mexico - Southeast Dawson Geophysical 20 Vlbroseis I/O System Two Lea County proprietary 3-D &2000 Chan Texas - West Basin Geo. 1 ** new Dynamite 3-D EWG -- Weight Hood County site &&360 Chan Drop Breckenridge Exp 101 ** Dynamite 3-D Opseis Archer County new site &1200 Chan Breckenridge Exp 201 Dynamite 2-D Opseis Young County &1200 Chan Dawson Geophysical 26 McMullen County Vibroseis 3-D&& Wooten & Associates 101 Dynamite 2-D&& Gulf Coast Region Louisiana - South Veritas DGC 43 Dynamite 3-D I/O RSR Abbeville &&700 Chan Cameron Parish Veritas DGC 45 Dynamite 3-D I/O RSR Franklin &1800 Chan Iberia Parish Texas Gulf Coast Dawson Geophysical 24 Vibroseis I/O System Two Hidalgo County 3-D &5000 Chan PGS Exploration 300 Dynamite 3-D I/O RSR Ft. Bend, Harris &4000 Chan counti PGS Exploration 320 Vlbroseis SN 408 Kingsville 3-D &7000 Kleberg County Chan Quantum 103 ** Dynamite 3-D I/O System Two Dayton new site &6000 Chan - RSR Tidelands 310 Dynamite 3-D 388 Eagle Opseis Port Lavaca ** new &2500 Chan Calhoun County site Ark-La-Tex Texas - East Dawson Geophysical 23 Vibroseis I/O System Two Johnson County 3-D &5000 - RSR proprietary Chan Dawson Geophysical 25 Vibroseis Johnson County 3-D&& Quantum 101 ** Vlbroseis MRX- I/O Weatherford new site 3-D &3000 System Two Chan Subsurface Explor. 42 Vibroseis high resolution Ft. Worth 3-D &1500 Chan Tidelands 320 Dynamite Clebume Johnson 3-D&& County Trace 1 ** Dynamite Weatherford new site 3-D&& Illinois Basin Illinois Great Lakes 1 ** new Dynamite 2-D Sercel 388 Illinois site &1200 Chan Offshore Gulf of Mexico Fugro (Chance) Geodetic Watergun analog - South Pass ** new 2-D && 1 bottom prof site Chan Deep Waters
pg 14 ... Dec. 15, 2004 WORLD GEOPHYSICAL NEWS U.S. CREW ACTIVITY REPORT WORKING CREWS
SOURCE EQUIPMENT TOWN BASE COMMENTS CONTRACTOR CREW CHANNELS COVERAGE SURVEY AREA OPERATOR ---------- ---- -------- -------- ----------- -------- Fugra (Chance) L'Appenteur Watergun 2-D West Cameron ** new && 48 Chan site Deep Waters Fairfield 105/New Airgun 3-D&& OBS - telseis West Cameron Hurricane - Venture at dock Fairfield 107/ Airgun 3-D OBC - 4 boats, High Island Explorer &1500 Chan 3-D 4 radiotelemetry Shallow Waters Racal/Thales Survey Albuquerque Airgun single ** new 2-D && 48 Chan streamer-600m Viosca Knoll site Veritas DGC Vantage Airgun 3-D&& ** new site Deep Waters Veritas DGC Viking I Airgun 3-D&& 6 streamers ** new site Deep Waters Dec. 15, 2004 ... pg 15
WORLD GEOPHYSICAL NEWS U.S. CREW ACTIVITY REPORT WORKING CREWS
SOURCE EQUIPMENT TOWN BASE COMMENTS CONTRACTOR CREW CHANNELS COVERAGE SURVEY AREA OPERATOR ---------- ---- -------- -------- ----------- -------- Alaska Alaska PGS Exploration 357 Vibroseis 3-D SN 408 *Available* &8000 Chan PGS Exploration 358 Vibroseis 2-D SN-408 - *Available* &2000 Chan Rockies Region Colorado Grant/Solid State 952 Vibroseis Rifle *Available* 3-D&& Grant/Solid State 954 Vibroseis 2-D MRX-I/O System Two &6000 Chan San Luis County *Available* Montana Polaris 5 Vibroseis 2-D&& Aram-24 rained out *Available* Tesla 5 Vib/Dyna 3-D&& Hardln *Available* Utah Trace 2 Dynamite 3-D&& in transit *Available* Gulf Coast Region Louisiana - South Quantum 104 Dynamite 3-D&& St. Martin Parish *Available* Texas Gulf Coast Grant/Solid State 347 Dynamite 3-D RSR-I/O System Two San Patricio *Available* &5700 Chan County Grant/Solid State 350 Dynamite 3-D I/O System Two - Livingston County *Available* &3500 Chan RSR Offshore Gulf of Mexico Fugro (Chance) Brooks Airgun 2-D&& Autonomous Underwate dock leased boat McCall *Available* Racal/Thales Meg Skansl Airgun 3-D&& Main Pass *Available* Survey Racal/Thales Reflection Airgun single high resolution Survey streamer-600m
pg 16 ... Dec. 15, 2004 Annex B Dawson Geophysical Company Valuation Account
Balance at Charged to Balance at beginning of period cost and expenses Deductions end of period Allowance for doubtful accounts: 2004 127,000 100,000 28,000 199,000 2003 71,000 56,000 -- 127,000 2002 121,000 -- 50,000 71,000