The following discussion and analysis should be read in conjunction with our financial statements and related notes thereto included elsewhere in this Form 10-Q. Portions of this document that are not statements of historical or current fact are forward-looking statements that involve risk and uncertainties, such as statements of our plans, objectives, expectations, and intentions. The cautionary statements made in this Form 10-Q should be read as applying to all related forward-looking statements wherever they appear in this Form 10-Q. Our actual results could differ materially from those anticipated in the forward-looking statements. Factors that could cause our actual results to differ materially from our anticipated results include those discussed in

Forward Looking Statements

This report includes "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact included in this report regarding the Company's strategies and plans for growth are forward-looking statements. These forward-looking statements are often characterized by the terms "may," "will," "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "target," and other words and terms of similar meanings and do not reflect historical facts. Although management believes that the expectations

reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Important factors that could cause actual results to differ materially from such expectations are disclosed in the Company's Securities and Exchange Commission filings, and include, but are not limited to, the dependence upon energy industry spending for seismic services, the unpredictable nature of forecasting weather, the potential for contract delay or cancellation, the potential for fluctuations in oil and gas prices, the availability of capital resources, and the current economic downturn which could adversely affect our revenues and cash flow if our customers, and/or potential customers, become unable to pay, or must delay payment of, amounts owing to the Company because such customers are not successful in generating revenues or are precluded from securing necessary financing. The forward-looking statements contained herein reflect the current views of the Company's management, and the Company assumes no obligation to update the forward-looking statements or to update the reasons actual results could differ from those contemplated by such forward-looking statements.

Executive Overview

The Company is a leading provider of seismic data acquisition services throughout the continental United States. We currently operate eight seismic crews. These seismic crews supply seismic data to companies engaged in the domestic exploration and development of oil and natural gas on land and in land-to-water transition areas. Our customers rely on seismic data to identify areas where subsurface conditions are favorable for the accumulation of existing hydrocarbons, to optimize the development and production of hydrocarbon reservoirs, to better delineate existing oil and natural gas fields, and to augment reservoir management techniques.

We acquire geophysical data using the latest in 3-D survey techniques. We introduce acoustic energy into the ground by using vibration equipment or dynamite detonation, depending on the surface terrain and subsurface requirements. The reflected energy, or echoes, is received through geophones, converted into a digital signal at a multi-channel recording unit, and then transmitted to a central recording vehicle. Subsurface requirements dictate the number of channels necessary to perform our services. With our state-of-the-art seismic equipment, including computer technology and multiple channels, we acquire, on a cost effective basis, immense volumes of seismic data that when processed and interpreted produce more precise images of the earth's subsurface. Our customers then use our seismic data to generate 3-D geologic models that help reduce finding costs and improve recovery rates from existing wells.

We provide our seismic data acquisition services primarily to major and independent domestic onshore oil and natural gas exploration and development companies for use in the onshore drilling and production of oil and natural gas in the continental United States. The main factors influencing demand for seismic data acquisition services in our industry are the level of drilling activity by oil and natural gas companies and the sizes of such companies' exploration and development budgets, which, in turn, depend largely on current and anticipated future crude oil and natural gas prices and depletion rates.

The services we provide to our customers vary according to the size and needs of each customer. Our services are marketed by supervisory and executive personnel who contact customers to determine their needs and respond to customer inquiries regarding the availability of crews. Contacts are based principally upon professional relationships developed over a number of years. There are a number of consultants in the oil and natural gas industry who process and interpret seismic data for oil and natural gas companies. These consultants can influence which company their customers use to acquire seismic data.

The acquisition of seismic data for the oil and natural gas industry is a highly competitive business. There are approximately 61 seismic crews currently operating in the continental United States. Contracts for such services generally are awarded on the basis of price quotations, crew experience, and the availability of crews to perform in a timely manner, although factors other than price, such as crew safety performance history, and technological and operational expertise, are often determinative. Our competitors include companies with financial resources

that are significantly greater than our own as well as companies of comparable and smaller size. Our primary competitors are Dawson Geophysical Company, Geo Kinetics, Inc., Petroleum Geo Services, and to a lesser extent, CGG-Veritas. These competitors are publicly-traded companies with long operating histories who field numerous crews and work in a number of different regions and terrain. These companies field approximately 50% of the estimated 61 seismic crews currently operating in the continental United States. In addition to the previously named companies, we also compete for projects from time to time with smaller seismic companies which operate in local markets with only one or two crews and often specialize in specific regions or type of operations. We believe that our long-term industry expertise, the customer relationships developed over our history, and our financial stability give us an advantage over most of our competitors in the industry.

Results of Operations

Nine Months Ended September 30, 2008, Compared to Nine Months Ended September 30, 2007 (Unaudited)

Revenues. Our revenues were $62,644,731 for the nine months ended September 30, 2008, compared to $64,533,952 for the same period of 2007, a decrease of 2.9%. This decrease in revenues was primarily attributable to two of our eight crews being idle most of the second quarter of 2008. These two crews were back to work and fully operational by mid-July. Also, two hurricanes hit the Gulf Coast in August and September, impacting some of our crews in the field. In addition, as we reported in our 2008 third quarter earnings release, our backlog is at a record level of approximately $82 million. As a result, we expect to have our crews fully utilized for the remainder of the year and well into the first half of 2009.

Cost of services. Our cost of services was $40,800,341 for the nine months ended September 30, 2008, compared to $42,610,731 for the same period of 2007, a decrease of 4.2%. This decrease was principally attributable to a decrease in the amount of shot-hole work that typically contains higher third party costs when compared to vibroseis work. As a percentage of revenues, cost of services was 65.1% for the nine months ended September 30, 2008 compared to 66.0% for the same period of 2007.

Selling, general, and administrative expenses. SG&A expenses were $3,045,079 for the nine months ended September 30, 2008, compared to $2,822,234 for the same period of 2007, an increase of 7.9%. This increase was primarily attributable to additional expenses associated with additional selling and administrative personnel in the nine months ended September 30, 2008, compared to the same period of 2007. SG&A expense as a percentage of revenues was 4.9% for the nine months ended September 30, 2008, compared with 4.4% for the same period of 2007.

Depreciation and amortization expense. Depreciation and amortization expense was $10,132,918 for the nine months ended September 30, 2008, compared to $9,717,156 for the same period of 2007, an increase of 4.3%. This increase was primarily attributable to purchases of additional seismic recording equipment and 13 new vibration vehicles, partially offset by an increase in the estimated useful life of certain seismic equipment See Note A to Financial Statements in Item 1. Depreciation and amortization expense as a percentage of revenues was 16.2% for the nine months ended September 30, 2008 compared to 15.1% for the same period of 2007.

Income from operations. Income from operations was $8,666,393 for the nine months ended September 30, 2008, compared to $9,383,831 for the same period of 2007, a decrease of 7.6%. This decrease was primarily attributable to a decrease in revenue, an increase in SG&A and depreciation expense, offset by a decrease in cost of services. EBITDA decreased $301,676 to $18,799,311 for the nine months ended September 30, 2008, from $19,100,987 for the same period of 2007, a decrease of 1.6%. This decrease was a result of lower net income of $527,994 and a decrease in income tax expense of $310,950, partially offset by an increase in depreciation and amortization expense of $415,762 and an increase in interest expense of $121,506. For a definition of EBITDA, a reconciliation of EBITDA to net income, and discussion of EBITDA, please refer to the section entitled "EBITDA" found below.

Interest expense. Interest expense was $615,353 for the nine months ended September 30, 2008, compared to $493,847 for the same period of 2007, an increase of 24.6%. This increase was primarily attributable to the additional debt incurred for the purchase of 2 ARAM ARIES ("ARAM") seismic recording systems, 7,000 additional recording channels and 13 new vibration vehicles.

Income tax expense. Income tax expense was $3,337,944 for the nine months ended September 30, 2008, compared to $3,648,894 for the same period of 2007. The effective tax rate for the nine months ended September 30, 2008, was 41.5% compared to 41.0% for the same period of 2007. See Note E of Notes to Financial Statements in Item 1.

Three Months Ended September 30, 2008, Compared to Three Months Ended September 30, 2007 (Unaudited)

Revenues. Our revenues were $21,553,653 for the three months ended September 30, 2008, compared to $24,207,816 for the same period of 2007, a decrease of 11.0%. This decrease in revenues was primarily attributable to: an unusually low amount of shot-hole work in the quarter which typically generates higher revenues but lower margins because they contain higher third-party costs; two of our eight seismic acquisition crews that were idled for most of the second quarter of 2008 did not get back into the field until the second half of July; and the two hurricanes that hit the Gulf Coast in August and September impacted some of our crews in the field.

Cost of services. Our cost of services was $13,373,764 for the three months ended September 30, 2008, compared to $16,971,927 for the same period of 2007, a decrease of 21.2%. This decrease was primarily attributable to the decrease in revenues for the three months ended September 30, 2008 compared to the same period of 2007, an unusually low amount of shot-hole work which typically contain higher third-party costs, and two of our eight seismic crews that were idled for most of the second quarter of 2008 and did not get back into the field until the second half of July. As a percentage of revenues, cost of services was 62.0% for the three months ended September 30, 2008 compared to 70.1% for the same period of 2007.

Selling, general, and administrative expenses. SG&A expenses were $1,125,128 for the three months ended September 30, 2008, compared to $1,064,175 for the same period of 2007, an increase of 5.7%. This increase was primarily attributable to additional expenses associated with additional selling and administrative personnel in the three months ended September 30, 2008, compared to the same period of 2007. SG&A expense as a percentage of revenues was 5.2% for the three months ended September 30, 2008, compared with 4.4% for the same period of 2007.

Depreciation and amortization expense. Depreciation and amortization expense was $3,451,571 for the three months ended September 30, 2008, compared to $2,906,129 for the same period of 2007, an increase of 18.8%. This increase was primarily attributable to additions of new seismic recording equipment and vibration vehicles. Depreciation and amortization expense as a percentage of revenues was 16.0% for the three months ended September 30, 2008 compared to 12.0% for the same period of 2007.

Income from operations. Income from operations was $3,603,190 for the three months ended September 30, 2008, compared to $3,265,585 for the same period of 2007, an increase of 10.3%. The increase was primarily attributable to a decrease in cost of services, partially offset by a decrease in revenue and increases in SG&A and depreciation and amortization expense. EBITDA increased $883,047 to $7,054,761 for the three months ended September 30, 2008, from $6,171,714 for the same period of 2007, an increase of 14.3%. This increase was a result of factors mentioned above. For a definition of EBITDA, a reconciliation of EBITDA to net income, and discussion of EBITDA, please refer to the section entitled "EBITDA" found below.

Interest expense. Interest expense was $245,429 for the three months ended September 30, 2008, compared to $146,412 for the same period of 2007, an increase of 67.6%. This increase was primarily attributable to the additional debt incurred for the purchase of 7,000 additional recording channels and 13 new vibration vehicles.

Income tax expense. Income tax expense was $1,494,972 for the three months ended September 30, 2008, compared to $1,293,065 for the same period of 2007. The effective tax rate was 44.5% for the three months ended September 30, 2008 compared to 41.5% for the same period of 2007. See Note E of Notes to Financial Statements in Item 1.

EBITDA

We define EBITDA as net income plus interest expense, income taxes, and depreciation and amortization expense. We use EBITDA as a supplemental financial measure to assess:

† the financial performance of our assets without regard to financing methods, capital structures, taxes, or historical cost basis;

† our liquidity and operating performance over time and in relation to other companies that own similar assets and that we believe calculate EBITDA in a manner similar to us; and

† the ability of our assets to generate cash sufficient for us to pay potential interest costs.

We also understand that such data is used by investors to assess our performance. However, EBITDA is not a measure of operating income, operating performance, or liquidity presented in accordance with generally accepted accounting principles. When assessing our operating performance or our liquidity, you should not consider this data in isolation or as a substitute for our net income, cash flow from operating activities, or other cash flow data calculated in accordance with generally accepted accounting principles. EBITDA excludes some, but not all, items that affect net income and operating income, and these measures may vary among other companies. Therefore, EBITDA as presented below may not be comparable to similarly titled measures of other companies. Further, the results presented by EBITDA cannot be achieved without incurring the costs that the measure excludes: interest, taxes, depreciation and amortization.

The following table reconciles our EBITDA to our net income:

                                   Three Months Ended            Nine Months Ended
                                      September 30,                September 30,
                                   2008          2007           2008           2007
                                       (unaudited)                  (unaudited)

Net income                      $ 1,862,789   $ 1,826,108   $  4,713,096   $  5,241,090
Depreciation and amortization     3,451,571     2,906,129     10,132,918      9,717,156
Interest expense                    245,429       146,412        615,353        493,847
Income tax expense                1,494,972     1,293,065      3,337,944      3,648,894

EBITDA                          $ 7,054,761   $ 6,171,714   $ 18,799,311   $ 19,100,987

Liquidity and Capital Resources

Cash Flows

Cash flows from operating activities.

Net cash provided by operating activities was $20,985,425 for the nine months ended September 30, 2008, compared to $10,431,314 for the same period of 2007. The $10,554,111 increase in the first nine months of 2008 from the same period of 2007 was principally attributable to timing of receipts and payment of invoices, the timing of billings and revenue recognition, and the mix of contracts. Changes in significant components of cash provided by operations were a $527,994 change in net income, a $415,762 change in depreciation and amortization expense, a $1,444,620 change in deferred income taxes, a $1,635,619 change in trade accounts receivable, a $786,740 change in cost and estimated earnings in excess of billings on uncompleted contracts, a $766,523 change in trade accounts payable, a $784,869 change in accrued liabilities, a $10,011,419 change in billings in excess of cost and estimated earnings on uncompleted contracts, and a $138,999 change in federal and state income taxes.

Working capital increased $8,692,849 to $14,182,146 as of September 30, 2008, from the December 31, 2007 working capital of $5,489,297. This increase was primarily due to a $12,647,842 increase in cash and cash equivalents, a $1,244,045 increase in trade accounts receivable, a $685,837 increase in cost and estimated earnings in excess of billings on uncompleted contracts, a $756,939 increase in prepaid expenses and other, a $1,072,120 decrease in trade accounts payable, a $611,708 decrease in accrued liabilities, partially offset by an increase in billings in excess of costs and estimated earnings on uncompleted contracts of $6,535,575, and an increase in the current portion of debt obligations of $1,868,766.

Cash flows used in investing activities.

Net cash used in investing activities was $2,369,867 for the nine months ended September 30, 2008, and $10,688,405 for the nine months ended September 30, 2007. This decrease was due primarily to a decrease in capital expenditures of $8,367,841.

Cash flows used in financing activities.

Net cash used in financing activities was $5,967,716 for the nine months ended September 30, 2008, and $4,956,038 for the nine months ended September 30, 2007. The increase was due primarily to an increase in the amount of principal payments on our outstanding notes payable of $910,880 and an increase in the amount of principal payments on capital lease obligations of $71,562.

Capital expenditures.

During the nine months ended September 30, 2008, the Company acquired $16,403,332 of additional seismic equipment and vehicles. Cash of $2,559,285 and $13,844,047 of borrowings from commercial banks and equipment lenders was used to finance these acquisitions. Major capital expenditures included approximately $4,800,000 for 13 new vibration vehicles, and approximately $7,000,000 for seismic recording equipment. Although we do not budget for our capital expenditures, we may purchase additional equipment during 2008 should the demand for our services increase.

Liquidity

Our primary source of liquidity is cash generated from operations and short-term borrowings from commercial banks and equipment lenders. Based on current forecasts, we believe that we have sufficient available cash and borrowing capacity to fund our working capital needs over the next 12 months.

Capital Resources

Since 2005, we have relied on cash generated from operations, short-term borrowings from commercial banks and equipment lenders, and proceeds from a public offering of our common shares to fund our working capital requirements and capital expenditures.

In April of 2005, we entered into a revolving credit agreement with a commercial bank. Effective September 16, 2006, we renewed our revolving credit agreement and increased the borrowing limit from $3,500,000 to $5,000,000. The borrowing limit under that revolving line of credit agreement remains at $5,000,000, and was renewed on September 16, 2007, and September 16, 2008, respectively. The revolving line of credit agreement does not expire until September 16, 2009. Our obligations under this agreement are secured by a security interest in our accounts receivable. Interest on the outstanding amount under the revolving credit agreement is payable monthly at the prime rate of interest. The credit loan agreement provides for non-financial and financial covenants including a minimum debt service coverage ratio in excess of 2.0 to 1.0 and a ratio of debt to worth not in excess of 1.25 to 1.0. As of September 30, 2008, we had no borrowings outstanding under the revolving credit agreement.

In April of 2004, we executed an addendum to our lease of a facility in Plano, Texas, that includes approximately 10,500 square feet of office and warehouse space and an outdoor storage area of approximately 20,000 square feet. This facility is used to repair geophysical equipment and housed our corporate offices until September of 2006. In September of 2005, we leased an additional facility, in Plano, Texas, with approximately 10,000 square feet of office and warehouse space and an additional 10,000 square feet of outdoor storage to accommodate our recent growth. This facility is used primarily to repair geophysical equipment. In January of 2006, we leased a 600-square foot facility in Houston, Texas, to be used as a sales office. In July of 2006, we entered into a lease for 7,269 square feet of office space located in Plano, Texas. In September of 2006, we relocated our corporate offices to this facility. In October of 2006, we leased an 800-square foot facility in Oklahoma City, Oklahoma, to be used as a sales office. In September of 2007, we leased a 1,130-square foot facility in Denver, Colorado, to be used as a sales office. In September 2008, we leased a 400-square foot facility in Pratt, Kansas, to be used as a permit office. In November of 2008, we will vacate our two Plano repair, warehouse and outdoor storage facilities, and move to a leased repair, warehouse and outside storage facilities in Denison, Texas. The Denison, Texas, facility consists of one 5,000-square foot building, two 10,000-square foot adjacent buildings and an outdoor storage area of approximately 60,500 square feet to accommodate our recent growth.

Contractual Obligations

In July 2008, the Company entered into a loan agreement with a bank to provide financing for the purchase of seismic recording equipment. The loan, for approximately $3,200,000, matures in July 2011, and provides for monthly principal payments of approximately $89,000 plus interest at 6.0%.

In August 2008, the Company entered into a loan agreement with a bank to provide financing for the purchase of new vibration vehicles. The loan, for approximately $2,000,000, matures in August 2011, and provides for monthly principal payments of approximately $56,000 plus interest at 6.0%.

In September 2008, the Company entered into a loan agreement with a commercial lender to provide financing for the purchase of seismic equipment. The loan, for approximately $2,700,000, matures in September 2012, and provides for monthly principal payments of approximately $56,000 plus interest at 6.0%.

In September 2008, the Company entered into a purchase agreement with an equipment supplier to purchase seismic equipment for approximately $1,100,000. In September 2008, the Company entered into a loan agreement with a commercial lender to provide financing for this purchase. The loan agreement is coterminus with the $2,700,000 loan above. Principal payments and interest rate will be determined at the time of loan funding, which is expected to take place during early November 2008.

We believe that our capital resources, including our short-term investments, funds available under our revolving credit agreement and cash flow from operations will be adequate to meet our current operational needs. We believe that we will be able to finance our 2008 capital expenditures through cash flow from operations, borrowings from commercial lenders, and the funds available under our line of credit loan agreement. However, our ability to satisfy working capital requirements, meet debt repayment obligations, and fund future capital requirements will depend principally upon our future operating performance, which is subject to the risks inherent in our business, and will also depend on the extent to which the current economic downturn adversely affects the ability of our customers, and/or potential customers, to pay promptly amounts owing to the Company under their service contracts with us.

Off-Balance Sheet Arrangements

As of September 30, 2008, we had no off-balance sheet arrangements.

Critical Accounting Policies

A discussion of our critical accounting policies can be found in our Annual Report on Form 10-K for the fiscal year ended December 31, 2007. There have been no material changes to these policies (including critical accounting estimates and assumptions or judgments affecting the application of those estimates and assumptions) during the first nine months of 2008.

Recently Issued Accounting Pronouncements

A discussion of recently issued accounting pronouncements can be found in our Annual Report on Form 10-K for the fiscal year ended December 31, 2007.