SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended JUNE 30, 1999
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from ____________________ to ____________________
Commission File Number 0-9268
GEOKINETICS INC.
(Exact name of small business issuer as specified in its charter)
DELAWARE 94-1690082
- ---------------------------------------- -------------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification Number)
incorporation or organization)
5555 SAN FELIPE, SUITE 780 HOUSTON, TEXAS 77056
(Address of principal executive offices) (Zip Code)
Small Business Issuer's telephone number, including area code (713) 850-7600
Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the Registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes [X] No [ ]
On June 30, 1999, there were 19,332,480 shares of Registrant's common stock
($.01 par value) outstanding.
<PAGE>
GEOKINETICS INC.
INDEX
PART I. FINANCIAL INFORMATION PAGE NO.
Item 1. Financial Statements.................................... 3
Condensed Statements of Financial Position
June 30, 1999 and December 31, 1998................ 3
Condensed Statements of Operations
Three Months and Six Months Ended
June 30, 1999 and 1998.............................. 5
Condensed Statements of Cash Flows
Three Months Ended
June 30, 1999 and 1998............................. 6
Pro forma Financial Statement Information................. 7
Notes to Interim Financial Statements..................... 9
Item 2. Management's Discussion and
Analysis or Plan of Operation....................... 10
PART II. OTHER INFORMATION
Item 3. Defaults Upon Senior Securities........................ 13
Item 5. Other Information...................................... 13
Item 6. Exhibits and Reports on Form 8-K....................... 13
2
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
GEOKINETICS INC.
Condensed Statements of Financial Position
ASSETS
June 30 December 31
1999 1998
Unaudited Unaudited
----------- -----------
Current Assets:
Cash ......................................... $ 1,620,317 $ 2,705,581
Receivables .................................. 2,858,756 7,385,425
Prepaid expenses ............................. 421,322 490,098
----------- -----------
Total Current Assets ..................... 4,900,395 10,581,104
Property and Equipment:
Proved oil and gas Properties (net of
depletion) ................................. 694,143 695,439
(successful efforts method for oil and gas
properties)
Equipment (net of depreciation) .............. 23,163,773 26,376,730
Buildings (net of depreciation) .............. 275,024 279,893
Land ......................................... 23,450 23,450
----------- -----------
Total Property and Equipment ............ 24,156,390 27,375,512
Other Assets:
Deferred charges ............................. 483,199 417,938
Restricted investments ....................... 106,700 106,700
Other assets ................................. 64,633 99,632
Goodwill ..................................... 29,488,380 30,957,183
----------- -----------
Total Other Assets ....................... 30,142,912 31,581,453
----------- -----------
Total Assets ......................... $59,199,697 $69,538,069
=========== ===========
3
<PAGE>
LIABILITIES AND STOCKHOLDERS' EQUITY
June 30 December 31
1999 1998
Unaudited Unaudited
------------ ------------
Current Liabilities:
Current maturities of long-term debt ....... $ 3,513,505 $ 5,210,380
Accounts payable ........................... 1,668,297 4,822,802
Accrued liabilities ........................ 6,748,347 4,352,380
Notes payable .............................. 2,177,872 2,151,405
Advances for lease bank .................... 260,500 260,500
Other current liabilities .................. 40,979 51,848
------------ ------------
Total Current Liabilities .............. 14,409,500 16,849,315
Long-Term Liabilities:
Long-term debt, net of current maturities .. 41,612,214 40,062,071
Deferred income tax ........................ 222,045 222,045
------------ ------------
Total Liabilities ..................... 56,243,759 57,133,431
Stockholders' Equity:
Common stock, $.01 par value, 100,000,000
shares authorized, 19,332,480 outstanding 193,325 193,325
Additional paid in capital ................. 29,112,344 29,112,344
Accumulated deficit ........................ (26,349,731) (16,901,031)
------------ ------------
Total Stockholders' Equity ............. 2,955,938 12,404,638
------------ ------------
Total Liabilities and Stockholders'
Equity ............................. $ 59,199,697 $ 69,538,069
============ ============
4
<PAGE>
GEOKINETICS INC.
Condensed Statement of Operations
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30 June 30
(unaudited) (unaudited)
---------------------------- ----------------------------
1999 1998 1999 1998
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Revenues:
Seismic revenues ......... $ 1,268,750 $ 5,895,795 $ 3,241,791 $ 11,587,134
Data processing operations 1,818,889 2,400,236 4,828,420 2,400,236
Oil and gas sales ........ 58,989 57,213 98,650 106,958
Operating fees ........... 61,752 57,654 120,445 115,078
------------ ------------ ------------ ------------
Total Revenues ....... 3,208,380 8,410,898 8,289,306 14,209,406
Expenses:
General and administrative $ 775,759 $ 1,244,315 $ 1,648,916 $ 2,368,408
Seismic operating expenses 1,795,426 3,689,509 4,378,111 6,566,032
Data processing expense .. 1,636,695 636,209 3,253,871 636,209
Lease operating expenses . 52,939 69,774 129,175 150,206
Amortization expense ..... 935,489 635,524 1,866,672 683,294
Depletion expense ........ 3,843 3,843 7,686 7,686
Depreciation expense ..... 1,660,237 973,417 3,317,585 1,819,516
------------ ------------ ------------ ------------
Total Expenses ....... 6,860,388 7,252,591 14,602,016 12,231,351
------------ ------------ ------------ ------------
Income (Loss) from operations $ (3,652,008) $ 1,158,307 $ (6,312,710) $ 1,978,055
Other Income:
Interest income ......... 26,010 76,515 56,261 93,517
Other income ............ 42,889 10 45,657 4,910
Interest expense ........ (1,605,383) (1,271,365) (3,237,907) (1,731,162)
------------ ------------ ------------ ------------
Total Other Income
(Expense) ........ (1,536,484) (1,194,840) (3,135,989) (1,632,735)
Income (Loss) before provision
for income tax ............. $ (5,188,492) $ (36,533) $ (9,448,699) $ 345,320
Provision for income tax ..... 0 0 0 0
------------ ------------ ------------ ------------
Total income tax .......... 0 0 0 0
------------ ------------ ------------ ------------
Net Income (Loss) ............ $ (5,188,492) $ (36,533) $ (9,448,699) $ 345,320
============ ============ ============ ============
Earnings (Loss) per Common
Share ...................... $ (0.27) $ (0.002) $ (0.49) $ 0.02
============ ============ ============ ============
Earnings (Loss) per
Share-assuming Dilution .... (0.12) $ (0.001) (0.22) $ 0.01
============ ============ ============ ============
Weighted average Common Shares
Outstanding ................ 19,322,480 19,008,135 19,322,480 18,615,352
============ ============ ============ ============
Fully Diluted Common Shares .. 42,655,719 42,938,788 42,655,719 42,546,005
============ ============ ============ ============
</TABLE>
5
<PAGE>
GEOKINETICS INC.
Condensed Statements of Cash Flows
Three Months Ended
June 30
(unaudited)
---------------------------
1999 1998
------------ ------------
Cash flows from operating activities:
Cash received from customers ............... $ 4,925,782 $ 6,687,407
Interest and dividends received ............ 26,010 76,515
Cash paid to suppliers and employees ....... (5,511,906) (2,659,463)
Interest paid .............................. (341,938) (467,637)
------------ ------------
Net cash provided (used) by operating
activities ........................... (902,052) 3,636,822
------------ ------------
Cash flows from investing activities:
Proceeds from insurance settlement ......... 21,504 0
Payments for purchase of property and
equipment ................................ (80,717) (10,571,642)
Acquisition of Geophysical Development Corp. 0 (26,000,000)
Acquisition earnest money refunded ......... 0 1,000,000
------------ ------------
Net cash provided (used) by investing
activities ........................... (59,213) (35,571,642)
------------ ------------
Cash flows from financing activities:
Proceeds from issuance of short-term debt .. 66,152 0
Proceeds from issuance of long-term debt ... 0 40,000,000
Principal payments on long-term debt ....... (260,229) (937,760)
Principal payments on short-term debt ...... (392,509) (1,661,257)
Principal payments on loans from officers .. 0 (24,696)
------------ ------------
Net cash provided (used) by financing
activities ........................... (586,586) 37,376,287
------------ ------------
Net increase (decrease) in cash ............... (1,547,851) 5,441,467
Cash acquired in acquisition ................... 0 50,805
Cash, beginning of period ...................... 3,168,168 1,111,330
------------ ------------
Cash, end of period ............................ $ 1,620,317 $ 6,603,602
============ ============
6
<PAGE>
GEOKINETICS INC.
Pro Forma Financial Statement Information
ACQUISITIONS
On April 30, 1998, the Company completed the acquisition of Geophysical
Development Corporation (GDC) pursuant to the terms of a Stock Purchase
Agreement, whereby the Company acquired 100% of the shares of the outstanding
common stock of GDC in exchange for $26,000,000 in cash and 1,000,000
newly-issued shares of the Company's common stock. GDC is engaged in the
business of providing seismic data processing, software and consultation
services to the oil and gas industry.
The acquisition has been accounted for as a purchase and the results of
operations of GDC are included in the consolidated financial statements from the
date of acquisition, April 30, 1998. The following represents the unaudited pro
forma results of operations as if the acquisition had occurred at the beginning
of the first quarter of 1998, and therefore includes the results of operations
of GDC during the periods January 1, 1998 through March 31, 1998 for the first
quarter and April 1, 1998 through April 30, 1998 on a pro forma basis for the
second quarter. In addition to combining the historical results of operations of
the two companies, the pro forma calculations include amortization of goodwill.
Excess of cost over the fair value of net assets acquired of $27,961,807 is
being amortized on a straight-line basis over 10 years.
7
<PAGE>
<TABLE>
<CAPTION>
For the Quarter Ended June 30, 1998
----------------------------------------------------------------
Geophysical
Development Pro-Forma
Geokinetics Inc. Corporation Adjustments Combined
---------------- ------------ ------------ ------------
<S> <C> <C> <C>
Revenues
Seismic Revenues ............... 5,895,795 5,895,795
Oil & Gas Sales ................ 57,213 57,213
Operator Overhead Fee .......... 57,654 57,654
Data Processing Revenues ....... 2,400,236 2,097,038 4,497,274
---------------- ------------ ------------ ------------
Total Revenues .............. 8,410,898 2,097,038 10,507,936
Expenses:
Seismic Operating Expenses ..... (3,689,509) (3,689,509)
General & Administrative ....... (1,244,315) (92,283) (1,336,598)
Depl. Depr. & Amort. ........... (1,612,784) (55,041) (235,657) (1,903,482)
Lease Operating Expenses ....... (69,774) (69,774)
Other Income ................... 10 10
Data Processing Expenses ....... (636,209) (681,263) (1,317,472)
Interest Income ................ 76,515 16,114 92,629
Interest Expense ............... (1,271,365) (9,795) (461,192) (1,742,352)
Income Tax (expense) benefit ... (433,422) 156,805 (276,617)
---------------- ------------ ------------ ------------
Net Income (Loss) ........... (36,533) 841,348 (540,044) 264,771
================ ============ ============ ============
Income (Loss) per Share ..... (0.002) 0.014
================ ============
Income (Loss) Fully Diluted . (0.001) 0.006
================ ============
Weighted Average Common
Shares and Equivalents
Outstanding ............... 19,008,135 19,008,135
================ ============
Fully Diluted ............... 42,938,788 42,938,788
================ ============
<CAPTION>
For the Six Months Ended June 30, 1998
----------------------------------------------------------------
Geophysical
Development Pro-Forma
Geokinetics Inc. Corporation Adjustments Combined
---------------- ------------ ------------ ------------
Revenues
Seismic Revenues ............... 11,587,134 11,587,134
Oil & Gas Sales ................ 106,958 106,958
Operator Overhead Fee .......... 115,078 115,078
Data Processing Revenues ....... 2,400,236 6,007,539 8,407,775
---------------- ------------ ------------ ------------
Total Revenues .............. 14,209,406 6,007,539 20,216,945
Expenses:
Seismic Operating Expenses ..... (6,566,032) (6,566,032)
General & Administrative ....... (2,368,408) (369,133) (2,737,541)
Depl. Depr. & Amort. ........... (2,510,496) (220,164) (942,628) (3,673,288)
Lease Operating Expenses ....... (150,206) (150,206)
Other Income ................... 4,910 4,910
Data Processing Expenses ....... (636,209) (2,257,435) (2,893,644)
Interest Income ................ 93,517 43,460 136,977
Interest Expense ............... (1,731,162) (29,932) (1,834,532) (3,595,626)
Income Tax (expense) benefit ... (1,079,274) 623,741 (455,533)
---------------- ------------ ------------ ------------
Net Income (Loss) ........... 345,320 2,095,061 (2,153,419) 286,962
================ ============ ============ ============
Income (Loss) per Share ..... 0.019 0.015
================ ============
Income (Loss) Fully Diluted . 0.008 0.007
================ ============
Weighted Average Common
Shares and Equivalents
Outstanding ............... 18,615,352 18,615,352
================ ============
Fully Diluted ............... 42,546,005 42,546,005
================ ============
</TABLE>
8
<PAGE>
NOTES TO INTERIM FINANCIAL STATEMENTS
1. METHOD OF PRESENTATION
The interim financial statements contained herein have been prepared in
accordance with the instructions to Form 10-QSB and include all adjustments
which are, in the opinion of management, necessary to provide a fair statement
of the financial position and results of operations for the interim period
reported. The company is working to complete its audit for the fiscal year ended
December 31, 1998. When completed, audited financial statements will be included
in an amendment to the Company's Form 10-KSB filed for the fiscal year ended
December 31, 1998. A summary of accounting policies and other significant
information is included therein.
2. LONG TERM DEBT
At June 30, 1999, the Company's long-term debt was $45,125,719 including
$3,513,506 which represents current maturities. Long-term debt is presented net
of unamortized Original Issue Discount, totaling $8,141,920. Long term debt
consists primarily of (i) 12% senior subordinated notes, in the amount of
$40,000,000, (ii) a note to a financial institution, bearing interest at prime
plus 1-1/2%, in the amount of $3,874,713, (iii) a note to an equipment supplier,
bearing interest at 12%, in the amount of $6,174,430, (iv) a note to an
equipment supplier, bearing interest at 10%, in the amount of $2,127,425 and (v)
a note to a financial institution bearing interest at prime, in the amount of
$589,715.
9
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
GENERAL
At June 30, 1999, the Company's financial position reflects (i) the
seismic acquisition services being conducted by Quantum Geophysical, Inc.,
Signature Geophysical Services, Inc. and Reliable Exploration, Inc., (ii) the
seismic data processing, software and consultation services being provided by
Geophysical Development Corporation, and (iii) the Company's ongoing oil and gas
operations.
The Company's financial results continue to be severely impacted by the
ongoing downturn in the oil service industry. This downturn resulted from the
deterioration of the price of oil which occurred in mid 1998 and continued into
early 1999. While there has been a continuing increase in the price of oil, in
relation to where it was in early 1999, the demand for the services provided by
the Company has not as yet been positively affected. The Company has taken steps
to reduce its operating expenses in response to weakened demand for its
services. During the quarter ended June 30, 1999, the Company operated two
crews, although only one was operating on a continuous basis. The Company
anticipates that demand for its seismic acquisition and seismic data processing
services will remain weak during the next fiscal quarter.
RESULTS OF OPERATIONS
Revenues for the six months ended June 30, 1999 were $8,289,306 as
compared to $14,209,406 for the same period of fiscal 1998, a decrease of 42%.
For the three months ended June 30, 1999 revenues totaled $3,208,380 as compared
to $8,410,898 for the same period of fiscal 1998, a decrease of 62%. The Company
entered the seismic data processing business by acquiring Geophysical
Development Corporation (GDC) on April 30, 1998. Revenues for the six month
period ended June 30, 1998, on a pro forma basis, would have been $20,216,945
had the Company acquired GDC at the beginning of 1998. On this basis, 1999 six
month revenues declined by 60% from the levels attained during the same period
of fiscal 1998. Revenues declined not only due to a weakened demand for the
Company's services but also due to a significant reduction in the pricing that
the Company is able to charge its customers for the services it is currently
providing.
Operating expenses for the six month period ended June 30, 1999 were
$7,761,157 as compared to $7,352,447 for the same period of fiscal 1998, an
increase of 6%. For the three month period ended June 30, operating expenses
decreased from $4,395,492 in 1998 to $3,485,060 in 1999, a decrease of 21%.
Operating expenses for the six month period ended June 30, 1998, on a pro forma
basis, would have been $9,609,882 had the GDC acquisition occurred on January 1,
1998. On this basis, 1999 operating expenses for the six months ended June 30
decreased 19% from the same period in 1998. During this quarter, the Company
continued in its effort to reduce its operating expenditures by implementing
additional staff reductions and limiting third party expenditures.
10
<PAGE>
General and Administrative expenses for the six months ended June 30,
decreased from $2,368,408 in 1998 to $1,648,916 in 1999, a decrease of 30%. For
the three months ended June 30, 1999 General and Administrative expenses totaled
$775,759 as compared to $1,244,315 for the same period of fiscal 1998, a
decrease of 38%. During the fourth quarter of 1998, the Company reclassified
certain costs previously recorded as General and Administrative expenses, to
better reflect seismic industry standards. If this reclassification had occurred
at the beginning of fiscal 1998, General and Administrative expenses would have
been $1,481,917 for the six month period ended June 1998. General and
Administrative expenses for the six months ended June 1998, on a pro forma
basis, would have been $1,851,050 had the GDC acquisition occurred on January
1, 1998. On this basis, 1999 General and Administrative expenses decreased 11%.
Depreciation and Amortization expense for the six months ended June 30,
1999 totaled $5,191,943, an increase of $2,681,447 from the same period of
fiscal 1998. This increase is a result of continuing seismic acquisition
equipment purchases during 1998 and the purchase of GDC in April of 1998, which
created significant additional amortization of goodwill.
Interest expense (net of interest income) for the six months ended June
30, 1999 totaled $3,135,989 as compared to $1,632,735 for the period ending June
30, 1998, an increase of 92%. For the three month period ending June 30, 1999
interest expense totaled $1,536,484, an increase of 29% from the same period of
fiscal 1998. This increase in interest expense is a result of the Company's
closing a $40,000,000 12% senior subordinated financing, due 2005, during April
of 1998. The proceeds from this financing were utilized to acquire GDC and
purchase additional seismic acquisition equipment. Interest expense for the six
month period ended June 30, 1998, on a pro forma basis, would have been
$3,453,739 had the GDC acquisition occurred on January 1, 1998. On this basis,
1999 interest expense for the six months ended June 30 decreased 9% from the
same period in 1998.
The Company had a net loss of $9,448,699, or ($0.49) per share, for the
six months ended June 30, 1999 as compared to net income of $345,320, or $0.02
per share, for the six months ended June 30, 1998. For the three months ended
June 30, 1999 the Company had a net loss of $5,188,492, or ($0.27) per share, as
compared to a net loss of $36,533, or ($0.002) per share, for the three months
ended June 30, 1998. This result is due primarily to the continuing weak demand
for the Company's services as well as increased interest costs, depreciation
expense and amortization of goodwill associated with the Company's 1998
acquisitions and expansion of its seismic acquisition fleet.
LIQUIDITY AND CAPITAL RESOURCES
In December of 1998 the Company temporarily suspended principal payments
on approximately $9.9 million of indebtedness owed to its principal equipment
supplier. The Company and such supplier are currently conducting negotiations to
restructure the Company's
11
<PAGE>
indebtedness and the Company believes that a satisfactory restructuring of the
debt will be completed by September 15, 1999.
At June 30, 1999 the Company had a working capital deficiency of
$9,509,105 which includes the current portion of long-term debt of $3,513,505.
At June 30, 1998 the Company had working capital of $2,018,016.
On June 30, the Company had cash balances of $1,620,318. The Company
believes this cash, anticipated cash flow from its seismic acquisition and data
processing operations will be sufficient to meet the working capital
requirements of its seismic acquistion and data processing operations for the
immediate future. The Company is negotiating with its senior subordinated
noteholders on a debt restructuring agreement and is also seeking to make a
private placement of senior debt for its ongoing working capital requirements.
The Company's ability to expand its business operations is dependent upon
the availability of internally generated cash flow and external financing
activities. Such financing may consist of bank or commercial debt, equity or
debt securities or any combination thereof. There can be no assurance that the
Company will be successful in obtaining additional financing when required. Any
substantial alteration or increase in the Company's capitalization through the
issuance of debt or equity securities or otherwise may significantly decrease
the financial flexibility of the Company. Due to uncertainties regarding the
changing market for seismic services, technological changes, and other matters
associated with the Company's operations, the Company is unable to estimate the
amount of any financing that it may need to acquire, upgrade and maintain
seismic equipment and continue its diversification as a full-scale geotechnology
enterprise. If the Company is unable to obtain such financing when needed, it
will be forced to curtail its business objectives, and to finance its business
activities with only such internally generated funds as may then be available.
12
<PAGE>
PART II. OTHER INFORMATION
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
On April 30, 1998, the Company issued Senior Subordinated Notes in the
original principal amount of $40,000,000 (the "Senior Subordinated Notes") to a
group of nine investors. The Senior Subordinated Notes bear interest at a rate
of 12% per annum, payable semi-annually. On April 20, May 7 and May 21, 1999,
the holders of the Senior Subordinated Notes granted the Company extensions of
the payment date for the semi-annual interest payment of $2,400,000 which was
originally due to be paid on April 15, 1999. The third such extension expired on
June 1, 1999. The Company has not paid the interest payment originally due on
April 15, 1999. Since June 1, 1999, the Company has been negotiating with the
holders of its Senior Subordinated Notes to restructure certain terms of that
indebtedness. The holders of the Senior Subordinated Notes have taken no action
to declare a default or accelerate the payment of the Senior Subordinated Notes.
Although the Company believes that it has reached a tentative agreement on the
terms of a restructuring of the Senior Subordinated Notes which will be
completed by September 15, 1999, there can be no assurance that a successful
restructuring will be completed by such date.
ITEM 5. OTHER INFORMATION
The Company conducts field operations in states under whose statutes
certain of the services provided by the Company may be subject to state sales
tax. The Company's financial statements currently reflect a liability of
$142,734 for such taxes arising from prior operations of a subsidiary. The
Company has determined that its subsidiary collected sales taxes from customers
and failed, in certain instances, to remit such taxes to the appropriate taxing
authorities. The Company is in the process of making the necessary tax filings
and intends to pursue the former owners of the subsidiary for the entire
liability which the subsidiary is obligated to pay.
On July 28, 1999 the Company sold all of the outstanding stock of HOC
Operating Co., Inc., a wholly-owed subsidiary of the Company, to Halex Oil
Corporation pursuant to the terms of a Stock Purchase agreement. This
transaction completes the Company's discontinuance of its oil and gas
operations.
The Company is evaluating the impact of the year 2000 on its computer
systems in both operating and financial applications and has developed an action
plan which includes a task force to evaluate the Company's major vendors' year
2000 compliance. The Company is in the process of installing a new, previously
planned general ledger system that will be year 2000 compliant. The Company
believes the impact of the year 2000 and related costs of compliance will not
have any material impact on its operations or liquidity.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits:
None.
(b) Reports on Form 8-K:
On August 12, 1999, the Registrant filed a Current Report on
Form 8-K to report the sale of HOC Operating Co., Inc. (Item 2).
No financial statements were included in such Form 8-K.
13
<PAGE>
SIGNATURE
Pursuant to the requirement of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
GEOKINETICS INC.
(Registrant)
Date: August 16, 1999 ___________________________
Thomas J. Concannon
Vice President and CFO
14
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> JUN-30-1999
<CASH> 1,620,317
<SECURITIES> 0
<RECEIVABLES> 2,858,756
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 4,900,395
<PP&E> 24,156,390
<DEPRECIATION> 0
<TOTAL-ASSETS> 59,199,697
<CURRENT-LIABILITIES> 14,409,500
<BONDS> 0
0
0
<COMMON> 193,325
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 59,199,697
<SALES> 0
<TOTAL-REVENUES> 3,208,380
<CGS> 0
<TOTAL-COSTS> 6,860,388
<OTHER-EXPENSES> 1,536,484
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (5,188,492)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (5,188,492)
<EPS-BASIC> (.27)
<EPS-DILUTED> 0
</TABLE>
