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<SEC-DOCUMENT>0001104659-07-053488.txt : 20070924
<SEC-HEADER>0001104659-07-053488.hdr.sgml : 20070924
<ACCEPTANCE-DATETIME>20070712111850
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001104659-07-053488
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20070712

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			TGC INDUSTRIES INC
		CENTRAL INDEX KEY:			0000799165
		STANDARD INDUSTRIAL CLASSIFICATION:	OIL AND GAS FIELD EXPLORATION SERVICES [1382]
		IRS NUMBER:				742095844
		STATE OF INCORPORATION:			TX
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		1304 SUMMIT AVE STE 2
		CITY:			PLANO
		STATE:			TX
		ZIP:			75074
		BUSINESS PHONE:		9728811099

	MAIL ADDRESS:	
		STREET 1:		1304 SUMMIT AVE
		STREET 2:		STE 2
		CITY:			PLANO
		STATE:			TX
		ZIP:			75074
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
<TEXT>
<html>

<head>







</head>

<body lang="EN-US">

<div>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">July 12, 2007</font></p>

<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mr. Karl Hiller</font></p>

<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Branch Chief</font></p>

<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Division of Corporation Finance</font></p>

<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">United States Securities and Exchange Commission</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Washington, D.C.&#160; 20549</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt .0001pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Re:</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>TGC
Industries, Inc. (the &#147;Company&#148;)</p>

<p style="margin:0pt 0pt .0001pt;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Form 10-KSB for the
Fiscal Year Ended December 31, 2006</font></p>

<p style="margin:0pt 0pt .0001pt;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Filed March 28, 2007</font></p>

<p style="margin:0pt 0pt .0001pt;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Form 10-Q for the Quarter
Ended March 31, 2007</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:108.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">File No. 0-14908</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Dear Mr. Hiller:</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We are in receipt
of the SEC&#146;s comment letter dated July 3, 2007.&#160;
To facilitate your review of our responses to your letter, our responses
have been inserted directly below each comment in the enclosed &#147;reproduction&#148;
of the original SEC letter.&#160; After we
have been advised that the proposed responses are sufficient, we will amend the
Company&#146;s filings as requested.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In addition to our
responses to your comments, we acknowledge the following:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt .0001pt 36.0pt;text-indent:-18.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
Company is responsible for the adequacy and accuracy of the disclosure in the
filing;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt .0001pt 36.0pt;text-indent:-18.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>staff
comments or changes to disclosure in response to staff comments do not
foreclose the Commission from taking any action with respect to the filing; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 36.0pt;text-indent:-18.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the Company may not
assert staff comments as a defense in any proceeding initiated by the
Commission or any person under the federal securities laws of the United
States.</p>

<p style="margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We
appreciate your assistance with our compliance with the applicable disclosure
requirements and with the enhancement of the disclosures in our filings.&#160; If you have any questions concerning our
responses, please contact the undersigned.</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:Times New Roman;width:100.0%;">
 <tr style="page-break-inside:avoid;">
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  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading --></p>
  </td>
  <td width="50%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Sincerely,</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="25%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:25.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ KENNETH USELTON</font></p>
  </td>
  <td width="25%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:25.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Kenneth Uselton</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chief Financial Officer</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">TGC Industries, Inc.</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Enclosure</font></p>
  </td>
  <td width="50%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

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<p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">UNITED STATES</font></p>

<p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SECURITIES AND EXCHANGE
COMMISSION</font></b></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WASHINGTON, D.C.
20549</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mail Stop 7010</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:Times New Roman;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="67%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:67.52%;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading --></p>
  </td>
  <td width="32%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:32.48%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">July 3, 2007</font></p>
  </td>
 </tr>
</table>

<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mr. Kenneth Uselton</font></p>

<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chief Financial Officer</font></p>

<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">TGC Industries, Inc.</font></p>

<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">101 E. Park Blvd. Suite 955</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Plano, TX&#160; 75074</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt .0001pt;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Re:&#160; </font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>TGC
Industries, Inc.</b></p>

<p style="margin:0pt 0pt .0001pt;text-indent:72.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Form 10-KSB for the Fiscal Year
Ended December 31, 2006</font></b></p>

<p style="margin:0pt 0pt .0001pt;text-indent:72.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Filed March 28, 2007</font></b></p>

<p style="margin:0pt 0pt .0001pt;text-indent:72.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Form 10-Q for the Quarter ended
March 31, 2007</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">File No.
0-14908</font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Dear Mr. Uselton:</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We have reviewed
your Form 10-K for the Fiscal year Ended December 31, 2006 and Form 10-Q for
the quarter ended March 31, 2007, and have the following comments.&#160; We have limited our review of your filings to
those issues we have addressed in our comments.&#160;
Please provide a written response to our comments.&#160; Please be as detailed as necessary in your
explanation.&#160; In some of our comments, we
may ask you to provide us with information so we may better understand your
disclosure.&#160; After reviewing this
information, we may raise additional comments.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Please understand
that the purpose of our review process is to assist you in your compliance with
the applicable disclosure requirements and to enhance the overall disclosure in
your filing.&#160; We look forward to working
with you in these respects.&#160; We welcome
any questions you may have about our comments or any other aspect of our
review.&#160; Feel free to call us at the
telephone numbers listed at the end of this letter.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As appropriate,
please amend your filing and respond to these comments within 10 business days
or tell us when you will provide us with a response.&#160; You may wish to provide us with marked copies
of the amendment to expedite our review.&#160;
Please furnish a cover letter with your amendment that keys your
responses to our comments and provides any requested information.&#160; Detailed cover letters greatly facilitate our
review.&#160; Please understand that we may
have additional comments after reviewing your amendment and responses to our
comments.</font></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">* * * *</font></p>

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<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We urge all
persons who are responsible for the accuracy and adequacy of the disclosure in
the filing reviewed by the staff to be certain that the filing includes all
information required under the Securities Exchange Act of 1934, and that they
have provided all information investors require for an informed investment
decision.&#160; Since the company and its
management are in possession of all facts relating to a company&#146;s disclosure,
they are responsible for the accuracy and adequacy of the disclosures they have
made.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In connection with
responding to our comments, please provide, in writing, a statement from the
company acknowledging that:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 36.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
company is responsible for the adequacy and accuracy of the disclosure in the
filing;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 36.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>staff
comments or changes to disclosure in response to staff comments do not
foreclose the Commission from taking any action with respect to the filing; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 36.0pt;text-indent:-18.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
company may not assert staff comments as a defense in any proceeding initiated
by the Commission or any person under the federal securities laws of the United
States.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In addition,
please be advised that the Division of Enforcement has access to all
information you provide to the staff of the Division of Corporation Finance in
our review of your filing or in response to our comments on your filing.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">You may contact
Nasreen Mohammed at (202) 551-3773 if you have questions regarding comments on
the financial statements and related matters.&#160;
Please contact me at (202)-551-3686 with any other questions.</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:Times New Roman;width:100.0%;">
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  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading --></p>
  </td>
  <td width="36%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:36.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Sincerely,</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="63%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:63.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:36.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="63%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:63.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:36.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="63%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:63.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:36.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Karl Hiller</font></p>
  </td>
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 <tr style="page-break-inside:avoid;">
  <td width="63%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:63.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:36.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Branch Chief</font></p>
  </td>
 </tr>
</table>

<p style="line-height:1.0pt;margin:0pt 0pt 12.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>

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<p style="margin:0pt 0pt 12.0pt;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Form 10-KSB for the Year Ended
December 31, 2006</font></u></b></p>

<p style="margin:0pt 0pt 12.0pt;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Notes to Financial Statements</font></u></b></p>

<p style="margin:0pt 0pt 12.0pt;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Note B &#150; Summary of Significant
Accounting Policies, page 23</font></u></b></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 54.0pt;text-indent:-36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>We
note that you recognize revenue using the percentage-of-completion method,
based on units-of-production.&#160; Please
expand your policy note to disclose the nature of the units, duration of the
contracts, and terms of service.&#160; Also
disclose the method applied in determining earned revenue and the cost of
earned revenue, as discussed in paragraphs 79 through 81 of SOP 81-1, as well
as your policies relating to combining and segmenting contracts, as discussed
in paragraphs 35 through 42 of SOP 81-1, to comply with the guidance in
paragraph 21.&#160; Further disclosure about
revenue and costs arising from claims may be necessary and should be provided,
if applicable.&#160; You may refer to Appendix
C for a summary of the disclosure recommendations in SOP 81-1.</p>

<p style="margin:0pt 0pt 12.0pt;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Company Response:</font></u></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We propose to amend the
filing by specifically addressing the revenue recognition for the seismic
surveys, as follows:</font></p>

<p style="margin:0pt 0pt 12.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Revenue Recognition</font></u></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Seismic Surveys</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company provides
seismic data acquisition survey services to its customers under general service
agreements which define certain obligations for the Company and for its
customers.&#160; A supplemental agreement
setting forth the terms of a specific project, which may be cancelled by either
party upon 60 days advance written notice, is entered into for every
project.&#160; These supplemental agreements
are either &#147;turnkey&#148; agreements providing for a fixed fee to be paid for each
unit of seismic data acquired or &#147;term&#148; agreements providing for a fixed
hourly, daily, or monthly fee during the term of the project.&#160; The duration of these projects will vary from
a few days to several months.&#160; The Company
recognizes revenue when services are performed under both types of
agreements.&#160; Services are defined as the
commencement of data acquisition.&#160; Under
turnkey agreements, the total number of units of seismic data to be gathered is
set forth in the agreement, and revenue is recognized as services are performed
on a per unit of seismic data acquired rate.&#160;
Under term agreements, revenue is recognized as services are performed
based on the time worked rate provided in the term agreement.&#160; Under both turnkey and term agreements, cost
of earned revenue is recognized by multiplying total estimated agreement cost
by the percentage-of-completion of the agreement.&#160; The excess of that amount over the cost of
earned revenue reported in prior periods is recognized as cost of earned
revenue for the period.&#160; Agreements are
not segmented nor combined for </font></p>

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<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">purposes of calculating
percentage of completion.&#160; The asset, &#147;Costs
and estimated earnings in excess of billings on uncompleted contracts&#148;
represents cost incurred on turnkey agreements in excess of billings on those
agreements.&#160; The liability, &#147;Billings in
excess of costs and estimated earnings on uncompleted contracts&#148; represents
billings on turnkey agreements in excess of cost on those agreements.&#160; Claims have been negligible in 2006 and 2005.</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 54.0pt;text-indent:-36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>We
note that you recognize revenues for the sale of gravity data when services are
rendered.&#160; Please provide more details on
the services provided and explain the method of measuring progress as specified
in paragraph 45 of SOP 81-1.&#160; It should
be clear what you are referring to as gravity data, and how this differs from
the other services you provide.</p>

<p style="margin:0pt 0pt 12.0pt;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Company Response</font></u></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We propose to amend the
filing by specifically addressing the revenue recognition for the gravity data,
as follows:</font></p>

<p style="margin:0pt 0pt 12.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Revenue Recognition</font></u></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Gravity Data</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company owns a data
bank which contains gravity data, and to a lesser extent magnetic data, from
many of the major oil and natural gas producing areas located within the
U.S.&#160; When an order for gravity data is
received, the portion of gravity data requested by the customer is prepared in
digital format for licensing and shipment to the customer.&#160; This process is performed by an employee in
the Company&#146;s headquarters office and normally takes a few days at the
most.&#160; In addition, the licensing of
gravity data is not a material part of the Company&#146;s revenue.&#160; For the year ended December 31, 2006, gravity
revenue was only $500.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Controls and procedures, page 36</font></u></b></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 54.0pt;text-indent:-36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>We
note that you evaluated and concluded that the disclosure controls and
procedures are effective as of December 31, 2006.&#160; However, you have included qualifying
language indicating that your control system can provide only reasonable
assurance that the objectives are met, also stating that there can be no
assurance that any design will succeed in achieving its stated goals under all
potential future conditions.&#160; Please
modify your disclosure to clarify whether your determination that your
disclosure controls and procedures are effective has been made at the
reasonable assurance level.</p>

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<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Company Response</font></u></b>:</p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We propose to amend Item
8A by adding a sentence at the end of the second paragraph to clarify that our
determination that the Company&#146;s disclosure controls and procedures are
effective has been made at a reasonable assurance level, as follows:</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Notwithstanding the
foregoing, the Company&#146;s Chief Executive Officer and Principal Financial and
Accounting Officer believe that their determination, contained in the preceding
paragraph, that the Company&#146;s disclosure controls and procedures are effective
has been made at a reasonable assurance level.&#148;</font></p>

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