<SEC-DOCUMENT>0000950123-11-014151.txt : 20110415
<SEC-HEADER>0000950123-11-014151.hdr.sgml : 20110415
<ACCEPTANCE-DATETIME>20110215124626
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0000950123-11-014151
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		2
FILED AS OF DATE:		20110215

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			MITCHAM INDUSTRIES INC
		CENTRAL INDEX KEY:			0000926423
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-EQUIPMENT RENTAL & LEASING, NEC [7359]
		IRS NUMBER:				760210849
		STATE OF INCORPORATION:			TX
		FISCAL YEAR END:			0131

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		8141 SH 75 SOUTH
		STREET 2:		PO BOX 1175
		CITY:			HUNTSVILLE
		STATE:			TX
		ZIP:			77342
		BUSINESS PHONE:		9362912277

	MAIL ADDRESS:	
		STREET 1:		P O BOX 1175
		CITY:			HUNTSVILLE
		STATE:			TX
		ZIP:			77342
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><IMG src="h79671h7967100.gif" alt="(MITCHAM LOGO)">
</DIV>

<TABLE width="90%">
<TR><TD style="font-size: 1pt; color: #FFFFFF"><B><I>THE </I></B><B>EXPLORATION EQUIPMENT SUPPLIER</B></TD>
</TR>
</TABLE>


<DIV align="center" style="font-size: 10pt"><DIV style="width: 100%; border-bottom: 1px solid #000000; FONT-size: 1px">&nbsp;</DIV></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">February&nbsp;15, 2011
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>VIA EDGAR AND FACSIMILE</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Mr.&nbsp;John Cash<BR>
Branch Chief<BR>
Securities and Exchange Commission<BR>
Division of Corporation Finance<BR>
100 F Street, NE<BR>
Washington, D.C. 20549

</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Re:</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Mitcham Industries, Inc.</B><BR>
<B>Form&nbsp;10-K for the year ended January&nbsp;31, 2010 filed April&nbsp;19, 2010</B><BR>
<B>Form&nbsp;10-Q for the quarter ended October&nbsp;31, 2010 filed December&nbsp;8, 2010</B><BR>
<B>File No.&nbsp;0-25142</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Dear Mr.&nbsp;Cash:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On February&nbsp;8, 2011, Mitcham Industries, Inc. (the &#147;<U>Company</U>&#148;) received the comments of
the staff of the Division of Corporation Finance (the &#147;<U>Staff</U>&#148;) of the Securities and
Exchange Commission (the &#147;<U>Commission</U>&#148;) to the Company&#146;s response to the Staff&#146;s letter
dated January&nbsp;19, 2011, all related to Form 10-K for the fiscal year ended January&nbsp;31, 2010 (the
&#147;<U>2011 Form&nbsp;10-K</U>&#148;) and Form 10-Q for the quarter ended October&nbsp;31, 2010 (the &#147;<U>Form
10-Q</U>&#148;).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following responses are for the Staff&#146;s review. For your convenience we have repeated
each comment of the Staff exactly as given in the Staff&#146;s comment letter.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Form&nbsp;10-K for the year ended January&nbsp;31, 2010</B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Critical Accounting Policies</B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Goodwill and Other Intangible Assets, page 34</B></U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>1.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>We note your response to comment four of our letter dated January&nbsp;19, 2011. You
indicate that you have identified your Seamap reportable segment as your reporting unit.
However, as noted on page one of your </B><B>Form 10-K</B><B>, your Seamap reportable segment is</B></TD>
</TR>

</TABLE>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><DIV style="width: 100%; border-bottom: 1px solid #000000; FONT-size: 1px">&nbsp;</DIV>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">MITCHAM INDUSTRIES, INC.<BR>
P.O. Box 1175 Huntsville, Texas 77342-1175<BR>
HUNTSVILLE: &#043;1 936.291.2277&nbsp;&nbsp;&nbsp;HOUSTON: &#043;1 281.353.4475&nbsp;&nbsp;&nbsp;FAX: &#043;1 936.295.1922&nbsp;&nbsp;&nbsp;EMAIL: sales@mitchamindustries.com
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>www.mitchamindustries.com</B>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&nbsp;</B></TD>
    <TD width="1%"><B>&nbsp;</B></TD>
    <TD><B>comprised of two operating segments, Seamap UK and Seamap Singapore. As such, it is
unclear to us how you have appropriately identified your reporting units pursuant to ASC
Topic 350-20-35. Refer also to Topic 350-20-35-33 through 35-46. In this regard, we
note that a reporting unit is an operating segment or one level below an operating
segment (also known as a component). Please reassess the appropriateness of the level at
which you assessed goodwill for impairment.</B></TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We continue to believe that our Seamap reportable segment is the reporting unit. While the Seamap
segment is comprised of two legal entities, it is managed as a single operation and discrete
financial information for each of the entities is not regularly reviewed by management of the
segment. Discrete financial information for each of the entities is prepared for tax and local
statutory reporting purposes. ASC Topics 350-20-35-36 and 350-20-35-37 provide that a reportable
segment may be a reporting unit, even if that segment is comprised of multiple components.
Furthermore, ASC topic 350-20-35-35 provides that two or more components of an operating segment
may be aggregated and deemed a single reporting unit if the components have similar economic
characteristics. We believe that the components of Seamap do have similar economic characteristics
in light of the guidance provided in ASC Topic 280-10-50-11. In that regard we note the following:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each of the components sells the same products.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The products for each are produced in a common location.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The nature of the business of each component&#146;s customers is identical, other than
geographic location in some cases.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each component distributes its products through a common direct sales staff.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Neither component is subject to regulatory requirements, other than local tax,
licensing and financial reporting requirements common to all business in those
countries.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Notes to the Consolidated Financial Statements</B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>11. Income Taxes, page F -15</B></U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>2.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Please revise the disclosures you have proposed in response to prior comment five
of our
letter dated January&nbsp;19, 2011 to clarify that you have recorded a deferred tax asset related
to the Canadian net operating loss which has been offset &#091;by&#093; your liability related to
uncertain tax positions.</B></TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In future filings we will revise the disclosures concerning our Canadian net operating losses as
follows:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;...The Company had Canadian net operating loss carryforwards of approximately $4,909,000
(Canadian $5,228,000) as of January&nbsp;31, 2010. The Canadian net operating losses will begin to
expire in 2011. <U>The deferred tax asset related to this item has been offset by our tax
liability for uncertain tax positions as the deductions giving rise to the net operating loss
carryforward are subject to an uncertain tax position.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">...The Company&#146;s Canadian income tax returns for the years ended January&nbsp;31, 2004, 2005 and
2006 have been examined by Canadian tax authorities. Assessments for those years and for the
effect of certain matters in subsequent years totaling approximately $7,400,000 have been
issued. The issues involved relate primarily to the deductibility of depreciation charges and
whether those deductions should be taken in Canada or in the United States. Accordingly, the
Company has filed requests for competent
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><DIV style="width: 100%; border-bottom: 1px solid #000000; FONT-size: 1px">&nbsp;</DIV>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">MITCHAM INDUSTRIES, INC.<BR>
P.O. Box 1175 Huntsville, Texas 77342-1175<BR>
HUNTSVILLE: &#043;1 936.291.2277&nbsp;&nbsp;&nbsp;HOUSTON: &#043;1 281.353.4475&nbsp;&nbsp;&nbsp;FAX: &#043;1 936.295.1922&nbsp;&nbsp;&nbsp;EMAIL: sales@mitchamindustries.com
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>www.mitchamindustries.com</B>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">authority assistance with the Canadian Revenue Agency (&#147;CRA&#148;) and with the IRS seeking to avoid
potential double taxation. In addition, the Company has filed a protest with the CRA and the
Province of Alberta. In connection with this protest the Company was required to make a
prepayment of approximately $2,600,000 against the assessment. <U>These items are contemplated
in the Company&#146;s tax liability for uncertain tax positions.&#148;</U>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Form&nbsp;10-Q for the quarter ended October&nbsp;31, 2010</B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Notes to the Condensed Consolidated Financial Statements</B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>4. Acquisitions, page 4</B></U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>3.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Please include the information you have provided to us in response to prior
comment
seven of our letter dated January&nbsp;19, 2011 in your future disclosures.</B></TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In future filings we will include the information provided to the Staff in our response to prior
comment seven of the letter dated January&nbsp;19, 2011.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>6. Balance Sheet, page 6</B></U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>4.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>We have read your response to comment eight of our letter dated January&nbsp;19, 2011.
Please specifically tell us whether you performed an impairment test of the assets you
were repossessing at October&nbsp;31, 2010. If not, please tell us why no such test was
necessary. Please also tell us whether you have recorded or will need to record any
additional impairment upon the repossession of those assets in December&nbsp;2010. If so,
please quantify the impairment charge and address why no such impairment was required
as of October&nbsp;31, 2010. Additionally, please provide to us your proposed disclosures
for your </B><B>Form 10-K</B><B> for the year ended January&nbsp;31, 2011.</B></TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">An impairment test of the assets themselves was not performed as of October&nbsp;31, 2010. These assets
are essentially identical to other assets in our lease pool. As of October&nbsp;31, 2011, there had
been no events or developments which would indicate an impairment of any of our lease pool assets
had occurred. However, we did as of October&nbsp;31, 2010 assess the carrying value of the defaulted
contract receivable versus the fair value of the equipment less the estimated costs to repossess
the equipment. It was determined that as of October&nbsp;31, 2011 no additional provision related to
this assessment was necessary. In prior periods we had recorded impairments totaling approximately
$1,487,000 related to this matter. These impairments were recorded as a provision for doubtful
accounts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As stated in our response to you of February&nbsp;1, 2011, we are in the process of completing the
accounting for the repossession. An inventory of the equipment repossessed, which was completed in
January, indicates that equipment with a value of approximately $645,000 was not among the
equipment repossessed and is missing. We have filed a claim in the amount of approximately
$1,300,000 with our insurance carrier related to this missing equipment and certain costs that we
incurred in repossessing the equipment. The disposition of this claim is still pending.
Accordingly, the amount of insurance recovery, if any, is uncertain. Furthermore, we
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><DIV style="width: 100%; border-bottom: 1px solid #000000; FONT-size: 1px">&nbsp;</DIV>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">MITCHAM INDUSTRIES, INC.<BR>
P.O. Box 1175 Huntsville, Texas 77342-1175<BR>
HUNTSVILLE: &#043;1 936.291.2277&nbsp;&nbsp;&nbsp;HOUSTON: &#043;1 281.353.4475&nbsp;&nbsp;&nbsp;FAX: &#043;1 936.295.1922&nbsp;&nbsp;&nbsp;EMAIL: sales@mitchamindustries.com
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>www.mitchamindustries.com</B>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">now anticipate that there will be a distribution from the bankruptcy estate of the customer who
defaulted under the contract. The amount of such distribution is uncertain.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Accordingly, we expect to record an additional provision of up to $645,000 in the three months
ended January&nbsp;31, 2011. Should the amount of the proceeds from our insurance carrier or the amount
of the distribution from the bankruptcy estate be determined prior to the filing or our Form 10-K
for the year ended January&nbsp;31, 2011, the amount of the provision may be reduced by those amounts.
This additional provision was not required as of October&nbsp;31, 2010 because as of that date, and
through the date we filed our Form 10-Q for the quarter ended October&nbsp;31, 2010, it was not known
that certain of the equipment was missing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In our Form 10-K for the year ended January&nbsp;31, 2011 we will make the following disclosures,
subject to modification based upon facts and circumstances that arise prior to the filing of the
Form 10-K:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;During the three months ended January&nbsp;31, 2011, the Company completed the repossession of the
equipment that had been pledged as collateral for the defaulted contract obligation and added the
equipment to its seismic equipment lease pool. The equipment was added to the seismic equipment
lease pool based on its estimated fair value. Upon inventory of the repossessed equipment, it was
determined that equipment with an estimated fair value of approximately $645,000 was missing.
Accordingly, the carrying value of the contract obligation exceeded the estimated fair value of the
equipment actually repossessed by approximately $645,000 and the Company has recorded a provision
for doubtful accounts of this amount in the three months ended January&nbsp;31, 2011. The Company has
filed a claim in the amount of approximately $1,300,000 with its insurance carrier related to the
missing equipment and certain costs incurred in repossessing the equipment. Additionally, the
Company understands that the bankruptcy estate of the defaulting customer anticipates making
distributions to creditors of the estate, including the Company. The amounts to be recovered from
these claims, if any, are uncertain and therefore have not been taken into consideration in
calculating the additional provision for doubtful accounts.&#148;
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">&#151; or &#151;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;During the three months ended January&nbsp;31, 2011, the Company completed the repossession of the
equipment that had been pledged as collateral for the defaulted contract obligation and added the
equipment to its seismic equipment lease pool. The equipment was added to the seismic equipment
lease pool based on its estimated fair value. Upon inventory of the repossessed equipment, it was
determined that equipment with an estimated fair value of approximately $645,000 was missing.
Accordingly, the carrying value of the contract obligation exceeded the estimated fair value of the
equipment actually repossessed by approximately $645,000. The Company has filed a
claim with its insurance carrier related to the missing equipment and certain
costs incurred in repossessing the equipment. The insurance company allowed the claim in the amount
of $&#091; &#093;, which amount was paid in &#091;March&#093;, 2011. &#091;In March&nbsp;2011, the bankruptcy estate of the
defaulting customer made a distribution to the Company in the amount of $&#091; &#093;&#093;. Accordingly, as of
January&nbsp;31, 2011, the Company has recorded an additional provision for doubtful accounts related to
this matter in the amount of $&#091; &#093;.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Should the Staff have any questions or comments, please contact the undersigned at
281.353.4475.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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    <TD width="49%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="49%">&nbsp;</TD>
</TR>
<TR></TR>
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<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Very truly yours,</TD>
</TR>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>MITCHAM INDUSTRIES, INC.</B></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Robert P. Capps</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Robert P. Capps</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Executive Vice President and Chief Financial Officer</TD>
</TR>
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</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><DIV style="width: 100%; border-bottom: 1px solid #000000; FONT-size: 1px">&nbsp;</DIV>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">MITCHAM INDUSTRIES, INC.<BR>
P.O. Box 1175 Huntsville, Texas 77342-1175<BR>
HUNTSVILLE: &#043;1 936.291.2277&nbsp;&nbsp;&nbsp;HOUSTON: &#043;1 281.353.4475&nbsp;&nbsp;&nbsp;FAX: &#043;1 936.295.1922&nbsp;&nbsp;&nbsp;EMAIL: sales@mitchamindustries.com
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>www.mitchamindustries.com</B>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
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