Document and Entity Information (USD $)	12 Months Ended
Document and Entity Information (USD $)	Dec. 31, 2011	Mar. 01, 2012	Jun. 30, 2011
Document and Entity Information
Entity Registrant Name	TGC INDUSTRIES INC
Entity Central Index Key	0000799165
Document Type	10-K
Document Period End Date	Dec. 31, 2011
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float			$ 87,671,126
Entity Common Stock, Shares Outstanding		19,356,551
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	FY

CONSOLIDATED BALANCE SHEETS (USD $)	Dec. 31, 2011	Dec. 31, 2010
CURRENT ASSETS
Cash and cash equivalents	$ 15,745,559	$ 13,072,503
Trade accounts receivable	19,351,023	17,166,709
Cost and estimated earnings in excess of billings on uncompleted contracts	5,101,478	4,578,580
Prepaid expenses and other	1,606,936	1,600,450
Prepaid federal and state income tax		1,219,165
Total current assets	41,804,996	37,637,407
PROPERTY AND EQUIPMENT - at cost
Machinery and equipment	139,017,290	115,252,066
Automobiles and trucks	12,616,608	10,868,295
Furniture and fixtures	434,146	418,643
Leasehold improvements	14,994	14,994
Total property and equipment, gross	152,083,038	126,553,998
Less accumulated depreciation and amortization	(94,286,207)	(76,838,372)
Total property and equipment, net	57,796,831	49,715,626
Goodwill	201,530	201,530
Other assets	77,870	60,834
Total noncurrent assets	279,400	262,364
Total assets	99,881,227	87,615,397
CURRENT LIABILITIES
Trade accounts payable	9,256,392	9,261,238
Accrued liabilities	2,598,126	1,808,149
Billings in excess of costs and estimated earnings on uncompleted contracts	937,755	5,486,017
Federal and state income tax payable	2,017,644
Current maturities of notes payable	5,802,513	6,316,852
Current portion of capital lease obligations	1,336,037	1,071,263
Total current liabilities	21,948,467	23,943,519
NOTES PAYABLE, less current maturities	5,328,892	4,718,492
CAPITAL LEASE OBLIGATIONS, less current portion	1,626,612	1,302,963
LONG-TERM DEFERRED TAX LIABILITY	7,257,576	4,787,623
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY
Preferred stock, $1.00 par value; 4,000,000 shares authorized; issued - none
Common stock, $.01 par value; 25,000,000 shares authorized; 19,348,436 and 19,242,251 in each period	193,484	192,423
Additional paid-in capital	28,176,922	27,512,709
Retained earnings	35,499,541	24,666,326
Treasury stock, at cost, 37,820 and 37,803 shares in each period	(257,394)	(257,323)
Accumulated other comprehensive income	107,127	748,665
Total shareholders' equity	63,719,680	52,862,800
Total liabilities and shareholders' equity	$ 99,881,227	$ 87,615,397

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Dec. 31, 2011	Dec. 31, 2010
CONSOLIDATED BALANCE SHEETS
Preferred stock, par value (in dollars per share)	$ 1.00	$ 1.00
Preferred stock, shares authorized	4,000,000	4,000,000
Preferred stock, shares issued	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	25,000,000	25,000,000
Common stock, shares issued	19,348,436	19,242,251
Treasury stock, shares	37,820	37,803

Face amount or stated value per share of nonredeemable preferred stock (or preferred stock redeemable solely at the option of the issuer); generally not indicative of the fair market value per share.

+ References+ Details

CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	12 Months Ended
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Revenue	$ 151,028,582	$ 108,318,801	$ 90,431,899
Cost and expenses
Cost of services	104,022,944	85,932,862	65,379,612
Selling, general and administrative	9,626,679	6,894,500	5,522,939
Depreciation and amortization expense	19,214,069	15,343,804	14,621,237
Total Cost and expenses	132,863,692	108,171,166	85,523,788
Income from operations	18,164,890	147,635	4,908,111
Interest expense	784,425	790,417	1,020,681
Income (loss) before income taxes	17,380,465	(642,782)	3,887,430
Income tax expense (benefit):
Current	4,077,297	433,350	1,289,938
Deferred	2,469,953	146,550	717,873
Income tax expense	6,547,250	579,900	2,007,811
Net income (loss)	$ 10,833,215	$ (1,222,682)	$ 1,879,619
Net income (loss) per common share:
Basic (in dollars per share)	$ 0.56	$ (0.06)	$ 0.10
Diluted (in dollars per share)	$ 0.55	$ (0.06)	$ 0.10
Weighted average number of shares outstanding:
Basic (in shares)	19,243,356	19,202,804	19,194,334
Diluted (in shares)	19,545,035	19,202,804	19,261,243

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $)	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive Income (Loss)
Balances at Dec. 31, 2008	$ 50,427,430	$ 174,353	$ 26,501,011	$ 24,009,389	$ (257,323)
Balances (in shares) at Dec. 31, 2008		17,435,319
Increase (Decrease) in Stockholders' Equity
5% common stock dividend	(385)	8,704	(9,089)
5% common stock dividend (in shares)		870,379
Options issued to outside Directors	150,000		150,000
Issuance of restricted common stock		50	(50)
Issuance of restricted common stock (in shares)		5,000
Cancellation of restricted stock		(15)	15
Cancellation of restricted stock (in shares)		(1,499)
Exercise of stock options	9,600	139	9,461
Exercise of stock options (in shares)		13,892
Amortization of unearned compensation restricted stock awards	182,812		182,812
Amortization of compensation cost of unvested stock options	179,918		179,918
Foreign currency translation adjustments	(133,716)					(133,716)
Net income (loss)	1,879,619			1,879,619
Balances at Dec. 31, 2009	52,695,278	183,231	27,014,078	25,889,008	(257,323)	(133,716)
Balances (in shares) at Dec. 31, 2009		18,323,091
Increase (Decrease) in Stockholders' Equity
5% common stock dividend	(431)	9,142	(9,573)
5% common stock dividend (in shares)		914,160
Issuance of restricted common stock		50	(50)
Issuance of restricted common stock (in shares)		5,000
Amortization of unearned compensation restricted stock awards	86,230		86,230
Amortization of compensation cost of unvested stock options	422,024		422,024
Foreign currency translation adjustments	882,381					882,381
Net income (loss)	(1,222,682)			(1,222,682)
Balances at Dec. 31, 2010	52,862,800	192,423	27,512,709	24,666,326	(257,323)	748,665
Balances (in shares) at Dec. 31, 2010		19,242,251
Increase (Decrease) in Stockholders' Equity
Issuance of common stock awards	224,999	318	224,681
Issuance of common stock awards (in shares)		31,851
Issuance of restricted common stock		150	(150)
Issuance of restricted common stock (in shares)		15,000
Exercise of stock options	181,505	593	180,912
Exercise of stock options (in shares)		59,334
Amortization of unearned compensation restricted stock awards	28,603		28,603
Amortization of compensation cost of unvested stock options	230,167		230,167
Purchase of treasury shares	(71)				(71)
Foreign currency translation adjustments	(641,538)					(641,538)
Net income (loss)	10,833,215			10,833,215
Balances at Dec. 31, 2011	$ 63,719,680	$ 193,484	$ 28,176,922	$ 35,499,541	$ (257,394)	$ 107,127
Balances (in shares) at Dec. 31, 2011		19,348,436

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	12 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Cash flows from operating activities
Net income (loss)	$ 10,833,215	$ (1,222,682)	$ 1,879,619
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	19,214,069	15,343,804	14,621,237
Gain on disposal of property and equipment	(441,524)	(39,725)	(221,156)
Non-cash compensation	483,769	508,254	512,730
Deferred income taxes	2,469,953	146,550	717,873
Changes in operating assets and liabilities
Trade accounts receivable	(2,442,223)	(7,377,921)	(2,352,493)
Cost and estimated earnings in excess of billings on uncompleted contracts	(589,429)	(4,098,234)	1,875,709
Prepaid expenses and other	2,326,499	1,384,007	2,187,472
Prepaid federal and state income tax	1,145,437	(239,844)	1,044,631
Other assets	(18,035)	(27,495)	16,730
Trade accounts payable	2,763,004	1,944,647	(1,115,265)
Accrued liabilities	823,278	443,628	230,476
Billings in excess of cost and estimated earnings on uncompleted contracts	(4,550,293)	(1,604,706)	1,300,559
Federal and state income tax payable	2,156,447
Net cash provided by operating activities	34,174,167	5,160,283	20,698,122
Cash flows from investing activities
Capital expenditures	(22,011,503)	(8,220,293)	(1,349,972)
Purchase of stock of Eagle Canada, Inc.			(10,345,000)
Net cash inflow on acquisition of subsidiary			370,822
Proceeds from sale of property and equipment	740,658	164,323	381,986
Net cash used in investing activities	(21,270,845)	(8,055,970)	(10,942,164)
Cash flows from financing activities
Principal payments on notes payable	(9,006,101)	(8,448,138)	(7,296,477)
Principal payments on capital lease obligations	(1,348,164)	(1,101,242)	(1,080,217)
Proceeds from exercise of stock options	181,505		9,600
Purchase of treasury shares	(71)
Payment of dividends		(431)	(385)
Net cash used in financing activities	(10,172,831)	(9,549,811)	(8,367,479)
Net increase (decrease) in cash and cash equivalents	2,730,491	(12,445,498)	1,388,479
Effect of exchange rates on cash	(57,435)	13,852	1,319
Cash and cash equivalents at beginning of year	13,072,503	25,504,149	24,114,351
Cash and cash equivalents at end of year	15,745,559	13,072,503	25,504,149
Supplemental cash flow information
Interest paid	784,425	790,417	1,020,681
Income taxes paid	774,136	1,479,446	1,722,914
Noncash investing and financing activities
Capital lease obligations incurred	1,953,263	2,030,175	609,734
Financed equipment purchase	6,765,619	4,975,110
Financed insurance premiums	2,336,121	2,206,655	2,087,288
Restricted stock awards to employees net of cancellations	101,475	20,750	24,350
Stock awards to employees	225,000
Cash used in the purchase of Eagle Canada consisted of the following:
Cash and cash equivalents			(370,822)
Trade accounts receivable			(1,245,336)
Other current assets			(861,911)
Deferred tax asset			(1,097,088)
Fixed assets			(9,940,118)
Goodwill			(1,226,992)
Current liabilities			918,390
Notes payable			1,496,494
Capital lease obligations			433,517
Long-term deferred tax liability			1,548,866
Purchase of stock of Eagle Canada, Inc.			$ (10,345,000)

NATURE OF OPERATIONS

12 Months Ended

Dec. 31, 2011

NATURE OF OPERATIONS

NATURE OF OPERATIONS

NOTE A — NATURE OF OPERATIONS

TGC Industries, Inc. (TGC or the Company) is engaged in the geophysical services business and primarily conducts seismic surveys and sells gravity data to companies engaged in exploration in the oil and gas industry in the U.S. and Canada.

Management has evaluated subsequent events through March 15, 2012, which is the date that the consolidated financial statements were available to be issued.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2011

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE B — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

The Consolidated Financial Statements include the accounts of TGC Industries, Inc. and its wholly-owned subsidiary, Eagle Canada, Inc. We have eliminated all significant intercompany accounts and transactions.

Business Combinations

We record acquisitions using the purchase method of accounting and, accordingly, have included the results of operations of acquired businesses in our consolidated results from the date of each acquisition. We allocate the purchase price of our acquisitions to the tangible assets, liabilities, and intangible assets acquired based on their estimated fair values. The excess purchase price over those fair values is recorded as goodwill. The fair value assigned to assets acquired is based on valuations provided by independent consultants and using management’s estimates and assumptions.

Foreign Currency

The functional currency of the Company’s international subsidiary is the local currency. Local currency assets and liabilities are translated at the rates of exchange on the balance sheet date, and local currency revenues and expenses are translated at average rates of exchange during the period. The resulting translation adjustments are recorded directly into a separate component of stockholders’ equity and represents the only component of accumulated other comprehensive income.

Cash Equivalents

The Company considers all highly liquid investments with original maturity dates of three months or less to be cash equivalents. The Company maintains its accounts at financial institutions located in Texas and Alberta, Canada. The Texas bank accounts are insured by the Federal Deposit Insurance Corporation up to $250,000. The Alberta bank accounts are insured by the Canadian Depository Insurance Corporation up to $100,000 Canadian dollars.

Trade Accounts Receivable

Trade accounts receivable are recorded in accordance with terms and amounts as specified in the related contracts on an ongoing basis. The Company evaluates the collectability of accounts receivable on a specific account basis using a combination of factors including the age of the outstanding balances, evaluation of the customer’s financial condition, and discussions with relevant Company personnel and with the customers directly. An allowance for doubtful accounts or direct write-off is recorded when it is determined that the receivable may not be collected, depending on the facts known and the probability of collection of the outstanding amount.

Property and Equipment

Property and equipment are stated at cost. Depreciation and amortization are provided using the straight-line method over the estimated useful lives of the individual assets ranging from 1 to 7 years. The depreciation expense on assets acquired under capital leases is included with depreciation expense on owned assets. Expenditures for major renewals and betterments that extend the useful lives of property and equipment are capitalized. Expenditures for maintenance and repairs are charged to expense as incurred.

Long-Lived Assets

Long-lived assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. For the purposes of evaluating the recoverability of long-lived assets, the recoverability test is performed using undiscounted cash flows estimated to be generated by those assets. No impairment charge was necessary at December 31, 2011, 2010, and 2009.

Income Taxes

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases, in accordance with ASC Topic 740 (“Topic 740”). Deferred tax assets and liabilities are measured using enacted tax rates expected to be applied to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax expense or benefit is the result of changes in deferred tax assets and liabilities. The components of the deferred tax assets and liabilities are individually classified as current or non-current based on their characteristics. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized.

Topic 740 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. In accordance with Topic 740, the Company recognizes in its financial statements the impact of a tax position if that position is “more likely than not” to be sustained on audit, based on the technical merits of the position. The Company’s estimate of the potential outcome of any uncertain tax issue is subject to management’s assessment of relevant risks, facts, and circumstances existing at that time. Topic 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, and disclosure. Interest and penalties related to unrecognized tax benefits, if any, are recorded as income tax expense. See Note I for further information.

Revenue Recognition

Seismic Surveys

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. A supplemental agreement setting forth the terms of a specific project, which may be cancelled by either party upon 30 days’ advance written notice, is entered into for every project. These supplemental agreements are either “turnkey” agreements providing for a fixed fee to be paid for each unit of seismic data acquired or “term” agreements providing for a fixed hourly, daily, or monthly fee during the term of the project. The duration of these projects will vary from a few days to several months. The Company recognizes revenue when services are performed under both types of agreements. Services are defined as the commencement of data acquisition. Under turnkey agreements, the total number of units of seismic data to be gathered is set forth in the agreement. TGC recognizes revenue on turnkey agreements, as services are performed on a per unit of seismic data acquired rate. Eagle Canada recognizes revenue on turnkey agreements as services are performed on a per unit of seismic data laid-out rate, which is standard industry practice in Canada. Under term agreements, revenue is recognized, by both TGC and Eagle Canada, as services are performed based on the time worked rate provided in the term agreement. 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. 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. Agreements are not segmented nor combined for purposes of calculating percentage of completion. The asset “Cost and estimated earnings in excess of billings on uncompleted contracts” represents cost incurred on turnkey agreements in excess of billings on those agreements. The liability “Billings in excess of costs and estimated earnings on uncompleted contracts” represents billings on turnkey agreements in excess of cost on those agreements. Claims have been negligible in the years ended December 31, 2011, 2010, and 2009.

Gravity Data

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. 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. This process is performed by an employee in the Company’s headquarters office and normally takes no longer than a few days. The licensing of gravity data is not a material part of the Company’s revenue. Gravity data revenue during the years ended December 31, 2011, 2010, and 2009, was approximately $37,500, $24,000, and $20,300, respectively.

Reclassifications

Certain reclassifications have been made to the 2010 financial statements to conform to the 2011 presentation.

Share-Based Compensation

The Company has two stock-based compensation plans, which are described more fully in Note H. The Company recognizes the fair value of the share-based compensation awards as wages in the Statements of Earnings on a straight-line basis over the vesting period. As a result, during the years ended December 31, 2011, 2010, and 2009, the Company recognized compensation expense for unvested stock options of $395,166, $422,024, and $179,918, respectively, and restricted stock of $28,603, $ 86,230, and $182,812, respectively.

For the year ended December 31, 2011, the fair value of the single option grant was estimated on the date of the grant using the Binomial Lattice option pricing model with the following assumptions used for the outstanding grants: risk-free interest rate of 0.40%; expected dividend yield of 0.0%; expected life of 5.0 years; and expected volatility of 61.0%. No options were granted during the year ended December 31, 2010. For the year ended December 31, 2009, the fair value of each option grant was estimated on the date of the grant using the Binomial Lattice option pricing model with the following assumptions used for the outstanding grants: risk-free interest rate of 2.30%; expected dividend yields of 0.0%; expected lives of 5.0 years; and expected volatility of 95.0%.

Financial Instruments

The Company’s financial instruments recorded on the consolidated balance sheet include cash and cash equivalents, accounts receivable, accounts payable, and debt. The carrying amounts of cash and cash equivalents, accounts receivable, and accounts payable approximate fair value because of the short-term nature of these items. Fair value of long-term debt is based on rates available to the Company for debt with similar terms and maturities.

Earnings Per Share

Basic earnings per common share is based upon the weighted average number of shares of common stock outstanding. Diluted earnings per share is based upon the weighted average number of common shares outstanding and, when dilutive, common shares issuable for stock options, warrants, and convertible securities.

All share and per share amounts for the years ended December 31, 2011, 2010 and 2009, have been adjusted to reflect 5% stock dividends paid May 14, 2010 and May 12, 2009 to shareholders of record as of April 30, 2010, and April 28, 2009, respectively. No stock dividends were declared or paid during the year ended December 31, 2011.

Use of Estimates

The preparation of consolidated financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Recent Accounting Standards

In May 2011, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2011-04, “Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and International Financial Reporting Standards,” to provide a consistent definition of fair value and ensure that the fair value measurement and disclosure requirements are similar between U.S. GAAP and International Financial Reporting Standards. ASU 2011-04 changes certain fair value measurement principles and enhances disclosure requirements, particularly for Level 3 fair value measurements. ASU 2011-04 will be effective in our first quarter of 2012 and will be applied prospectively. We are currently evaluating the impact of ASU 2011-04 and believe the adoption will not have a material effect on our financial statements.

In June 2011, the FASB issued ASU No. 2011-05, “Comprehensive Income (Topic 220): Presentation of Comprehensive Income,” to require an entity to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. ASU 2011-05 eliminates the option to present the components of other comprehensive income as part of the statement of equity. This update does not change what items are reported in other comprehensive income or the requirement to report reclassification of items from other comprehensive income to net income. ASU 2011-05 will be effective in our first quarter of 2012, though earlier adoption is permitted. The update will be applied retrospectively upon adoption. We believe the adoption will not have a material effect on our financial statements.

In September 2011, the FASB issued ASU 2011-08, Intangibles-Goodwill and Other-Topic 350: Testing for Impairment. ASU 2011-08 amends the guidance in FASB Accounting Standards Codification Topic (“ASC”) 350-20, Intangibles-Goodwill and Other-Goodwill. The intent of this ASU is to simplify how entities test goodwill for impairment by allowing an entity to use a qualitative approach to test goodwill for impairment. The amendments in the ASU permit an entity to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test described in ASC 350-20. The amendments do not change the current guidance for testing other indefinite-lived assets for impairment. ASU 2011-08 is effective for goodwill impairment tests performed for fiscal years beginning after December 15, 2011. Early application is permitted. The Company elected to adopt this standard early and effective as of December 31, 2011 in its year-end goodwill impairment analysis.

In December 2011, the FASB issued ASU No. 2011-11, Balance Sheet (Topic 210) — Disclosures about Offsetting Assets and Liabilities (“ASU 2011-11”). This update requires the following new disclosures related to recognized financial instruments (and derivatives) subject to master netting arrangements or similar agreements: (i) the gross amounts of recognized financial assets and liabilities; (ii) the amounts offset under current GAAP; (iii) the net amounts presented in the balance sheet; (iv) the amounts subject to an enforceable master netting arrangement or similar agreement that were not included in (ii); and (v) the net amount representing the difference between (iii) and (iv). The update also requires qualitative disclosures related to counterparties, setoff rights, and terms of enforceable master netting arrangements and related agreements depending on their effect or potential effect on the entity’s financial position. The new disclosures will enable financial statement users to compare balance sheets prepared under US GAAP and International Financial Reporting Standards (“IFRS”), which are subject to different offsetting models. ASU 2011-11 is effective for fiscal years, and interim periods within those years, beginning on or after January 1, 2013. The Company does not currently expect that the adoption of this update in the first quarter of 2013 will have a significant effect on its consolidated financial statements and related disclosures.

COSTS, BILLINGS, AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS

12 Months Ended

Dec. 31, 2011

COSTS, BILLINGS, AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS

COSTS, BILLINGS, AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS

NOTE C — COSTS, BILLINGS, AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS

The components of uncompleted contracts are as follows at December 31:

	2011			2010
Costs incurred on uncompleted contracts and estimated earnings	$	5,785,132		$	8,455,739
Less billings to date	(1,621,409		)	(9,363,176		)
	$	4,163,723		$	(907,437	)

The components of uncompleted contracts are reflected in the consolidated balance sheets as follows at December 31:

	2011			2010
Costs and estimated earnings in excess of billings on uncompleted contracts	$	5,101,478		$	4,578,580
Billings in excess of costs and estimated earnings on uncompleted contracts	(937,755		)	(5,486,017		)
	$	4,163,723		$	(907,437	)

- Definition

The entire disclosure for long-term contracts or programs.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 912

-SubTopic 405

-Section 50

-Paragraph 2

-URI http://asc.fasb.org/extlink&oid=6471944&loc=d3e56414-109416

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher AICPA

-Name Accounting Research Bulletin (ARB)

-Number 43

-Chapter 11

-Section A

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher AICPA

-Name Accounting Research Bulletin (ARB)

-Number 45

-Paragraph 12, 15, 16

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher AICPA

-Name Statement of Position (SOP)

-Number 81-1

-Paragraph 94

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 02

-Paragraph 3, 6

-Article 5

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher AICPA

-Name Accounting Research Bulletin (ARB)

-Number 43

-Chapter 11

-Section B

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher AICPA

-Name Accounting Research Bulletin (ARB)

-Number 43

-Chapter 11

-Section C

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-Topic 210

-SubTopic 10

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-Subparagraph (SX 210.5-02.3(c))

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+ Details

ACCRUED LIABILITIES

12 Months Ended

Dec. 31, 2011

ACCRUED LIABILITIES

ACCRUED LIABILITIES

NOTE D — ACCRUED LIABILITIES

Accrued liabilities consist of the following at December 31:

	2011		2010
Compensation and payroll taxes	$	1,364,810	$	1,412,711
Accrued sales and use tax	114,601		6,988
Insurance	176,676		25,779
Accrued interest	73,105		73,105
Other	868,934		289,566
	$	2,598,126	$	1,808,149

DEBT

12 Months Ended

Dec. 31, 2011

DEBT

DEBT

NOTE E — DEBT

Line of Credit

In September of 2010, and again in September of 2011, the Company renewed its revolving line of credit allowing the Company to borrow, repay, and re-borrow, from time to time, up to $5,000,000. Interest on the outstanding amount under the line of credit loan agreement is payable monthly at the greater of the prime rate of interest or five percent. The credit loan agreement is secured by a security interest in our accounts receivable. At December 31, 2011 and 2010, the Company had no borrowings outstanding under the line of credit loan agreement.

Notes Payable

Notes payable consists of the following at December 31:

	2011			2010

Notes Payable to commercial banks,

Four outstanding notes payable as of 12/31/2011 with Interest between 4.50% and 6.35%, due in monthly installments between $46,781 and $187,934 plus interest; collateralized by equipment	$	9,827,949		$	7,057,406

Two notes with interest at 6.00% and payments between $55,658 and $88,889 plus interest, were paid off in 2011; they were collateralized by equipment

Notes Payable to finance companies,

Three outstanding notes payable as of 12/31/2011 with Interest between 5.33% and 6.00%, due in monthly installments between $23,740 and $61,997 plus interest; collateralized by equipment	$	904,103		$	3,635,612

One note with interest at 6.38% with a payment of $85,839 plus interest, was paid of in 2011; this note was collateralized by equipment

Notes Payable to finance companies for insurance notes

Two outstanding notes payable as of 12/31/2011 with interest between 4.95% and 5.56%, due in monthly installments between $17,957 and $227,844 including interest	$	399,353		$	342,326

	$	11,131,405		$	11,035,344
Less Current Maturities	$	(5,802,513	)	$	(6,316,852	)
	$	5,328,892		$	4,718,492

Aggregate annual maturities of notes payable at December 31, 2011 are as follows:

Year Ending
December 31,

2012	$	5,802,513
2013	$	3,825,421
2014	$	1,503,471
	$	11,131,405

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References+ Details

LEASES

12 Months Ended

Dec. 31, 2011

LEASES

LEASES

NOTE F — LEASES

Capital Lease Obligations

The Company leases vehicles and certain specialized seismic equipment under leases classified as capital leases. The following is a schedule showing the future minimum lease payments under capital leases by years and the present value of the minimum lease payments as of December 31, 2011.

Year Ending
December 31,
2012	$	1,505,146
2013	1,173,060
2014	508,768
2015	32,606
Total minimum lease payments required	3,219,580
Less: Amount representing interest	(256,931		)
Present value of minimum lease payments	2,962,649
Less current maturities	(1,336,037		)
	$	1,626,612

The net book value of the capital assets leased was approximately $3,604,000 and $2,942,000 as of December 31, 2011 and 2010, respectively. Total accumulated depreciation for fixed assets under capital lease with remaining obligations was approximately $3,743,000 and $1,918,000 as of December 31, 2011, and 2010, respectively. Interest rates on these leases range from 5.57% to 10.51%.

Operating Lease Obligations

The Company leases six offices and two warehouse facilities under operating leases that expire at various dates between January 2011 and May 2017 with two leases on a month-to-month basis. One of the office facilities, used by the Company as its corporate headquarters, is located in Plano, Texas. One of the office facilities, used by Eagle Canada, is located in Calgary, Alberta. The warehouse facilities, used as warehouse and equipment repair facilities, are located in Denison, Texas, and Calgary, Alberta. Three office facilities are used as sales offices and are located in Houston, Texas, Midland, Texas, and Oklahoma City, Oklahoma. The remaining office facility, located in Pratt, Kansas, is used as a permitting office. Rent expense for these facilities for the years ended December 31, 2011, 2010, and 2009 were approximately $605,000, $580,000, and $450,000, respectively.

The following is a schedule by years of future minimum rental payments required under the operating leases as of December 31, 2011:

2012	$	532,584
2013	591,032
2014	406,021
2015	279,743
2016 and thereafter	281,513
Total minimum payments required	$	2,090,893

- Definition

The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing.

+ References+ Details

FAIR VALUE OF DEBT OBLIGATIONS

12 Months Ended

Dec. 31, 2011

FAIR VALUE OF DEBT OBLIGATIONS

FAIR VALUE OF DEBT OBLIGATIONS

NOTE G — FAIR VALUE OF DEBT OBLIGATIONS

The fair value of debt obligations is estimated using discounted cash flows based on the Company’s incremental borrowing rate for similar types of borrowings. A comparison of the carrying value and fair value of these instruments is as follows:

	December 31,
	2011		2010

Carrying value	$	11,131,405	$	11,035,344
Fair value	$	11,161,813	$	11,044,999

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

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-Name Accounting Standards Codification

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-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 133

-Paragraph 44A, 44B

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-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

-Paragraph 15C, 15D

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-Name Statement of Financial Accounting Standard (FAS)

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-Number 159

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+ Details

SHAREHOLDERS' EQUITY

12 Months Ended

Dec. 31, 2011

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY

NOTE H — SHAREHOLDERS’ EQUITY

Income (loss) Per Share

The following is a reconciliation of net income (loss) and weighted average common shares outstanding for purposes of calculating basic and diluted net income (loss) per share:

	December 31,
	2011		2010			2009

Numerator:
Net income (loss)	$	10,833,215	$	(1,222,682	)	$	1,879,619

Denominator:
Basic - weighted average common shares outstanding	19,243,356		19,202,804			19,194,334
Effect of Dilutive Securities:

Stock options	301,679		—			66,909
	19,545,035		19,202,804			19,261,243

Basic net income (loss) per share	$	0.56	$	(0.06	)	$	0.10
Diluted net income (loss) per share	$	0.55	$	(0.06	)	$	0.10

Outstanding options that were not included in the diluted calculation because their effect would be anti-dilutive total 154,130 and 761,959 for the years ended December 31, 2011 and 2010, respectively.

All share and per share amounts have been adjusted to reflect 5% stock dividends paid May 14, 2010 and May 12, 2009, to shareholders of record as of April 30, 2010 and April 28, 2009.

Share-Based Compensation Plans

The Company’s 1999 stock option plan (the “1999 Plan”) expired in 2009. However, options covering 84,058 shares remained outstanding at December 31, 2009. These options expired, unexercised, during the year ended December 31, 2010. As a result, no options were outstanding under the 1999 Plan at December 31, 2010 or December 31, 2011 and no additional options may be granted under the 1999 Plan.

The Company currently has in effect a 2006 stock award plan (the “2006 Plan”). At the June 11, 2010 Annual Meeting of Shareholders, the shareholders approved an increase of 2,000,000 shares of common stock for issuance under the 2006 Plan. This increased the total aggregate number of shares of common stock under the 2006 Plan to 3,000,000 shares. The 2006 Plan provides for the granting of stock options, common stock, and restricted stock. The 2006 Plan is administered by a committee of the Board of Directors (“the Committee”). Currently the Committee is comprised of three directors. Any stock options granted under the 2006 Plan will be exercisable as set forth in the option agreements pursuant to which they are issued, but in no event will stock options be exercisable after the expiration of five (5) years from the date of grant. Outstanding options, under the 2006 Plan at December 31, 2011, have vesting periods ranging from the date of grant to the third annual anniversary of the grant.

During 2011, 99,185 options were granted and 80,334 options were exercised or cancelled under the 2006 Plan. During 2010, no options were granted and 3,308 options were canceled under the 2006 Plan. Restricted stock consists of shares that are transferred by the Company to a participant, but are subject to substantial risk of forfeiture and to restrictions on their sale or other transfer by the participant. Any restricted stock granted or issued under the 2006 Plan will vest as set forth in the restricted stock agreement pursuant to which it was issued or granted. The provisions of the restricted stock agreements need not be the same with respect to each participant. In April of 2006, August of 2007, June of 2008, June of 2009, May of 2010, November of 2011 and December of 2011, the Committee granted 111,711, 20,837, 11,025, 5,250, 5,000, 25,331 and 21,520 shares of restricted stock, respectively. The shares of restricted stock were issued in the names of the grantees and have restrictive legends prohibiting their sales prior to vesting. Vesting periods, for restricted stock issued to date, range from at grant date to the third annual anniversary of the grant. Upon vesting, a new certificate will be issued for the vested portion without the restrictive legend.

During the years ended December 31, 2011, 2010, and 2009, the Company recognized compensation expense associated with the restricted stock of $28,603, $86,230, and $182,812, respectively. During the years ended December 31, 2011 and 2010, no unamortized deferred stock-based compensation was related to any employee that left the Company. As a result of employees who left the Company during the year ended December 31, 2009, the Company reversed approximately $4,000 of deferred stock-based compensation and approximately $4,000 of additional paid-in capital, which represented the unamortized balance of deferred stock-based compensation relating to the employees who left the Company. The number of shares of restricted stock issued in August of 2007 has been adjusted to reflect the 5% stock dividends paid in May of 2010, May of 2009 and April of 2008. The number of shares of restricted stock issued in June of 2008 has been adjusted to reflect the 5% stock dividends paid in May of 2010 and May of 2009. The number of shares of restricted stock issued in June of 2009 has been adjusted to reflect the 5% stock dividend paid in May of 2010. No dividends were declared or paid in 2011.

During the years ended December 31, 2011, 2010, and 2009, the Company recognized compensation expense associated with unvested options under the 1999 and 2006 Plans of $395,166, $422,024, and $179,918, respectively.

The following table summarizes activity under the Plans:

			Weighted
	Shares under		Average
	Option		exercise price

Balance at December 31, 2008	641,787		$	3.64
Granted	241,430		$	4.01
Exercised	(13,892	)	$	.69
Canceled	(20,000	)	$	3.37
Balance at December 31, 2009	849,325		$	3.80
Granted	—		$	—
Exercised	—		$	—
Canceled	(87,366	)	$	4.27
Balance at December 31, 2010	761,959		$	3.75
Granted	99,185		$	6.37
Exercised	(59,334	)	$	3.06
Canceled	(21,000	)	$	4.10
Balance at December 31, 2011	780,810		$	4.12

The following information applies to options outstanding and exercisable at December 31, 2010:

			Weighted
			average
			remaining	Weighted
	Range of	Number	contractual	average
	Exercise prices	outstanding	life (in years)	exercise price
Outstanding options	$3.06 — $8.38	780,810	2.43	$	4.12
Exercisable options	$3.06 — $8.38	729,706	2.38	$	4.09

- Definition

The entire disclosure for shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, if any, including other comprehensive income (as applicable). Including, but not limited to: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms, and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables, effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

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-Name Accounting Standards Codification

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-Number 210

-Section 02

-Paragraph 29, 30, 31

-Article 5

Reference 23: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Staff Accounting Bulletin (SAB)

-Number Topic 4

-Section E

+ Details

INCOME TAXES

12 Months Ended

Dec. 31, 2011

INCOME TAXES

INCOME TAXES

NOTE I — INCOME TAXES

The income tax provision charged to continuing operations for the years ended December 31, 2011, 2010, and 2009, was as follows:

	2011		2010			2009

Current:
U.S. federal	$	35,561	$	(190,869	)	$	774,429
Foreign	3,343,374		250,190			142,358
State and local	698,362		374,029			373,151
	4,077,297		433,350			1,289,938

Deferred expense (benefit)	2,469,953		146,550			717,873
	$	6,547,250	$	579,900		$	2,007,811

The components of the Company’s income before income tax expense attributable to domestic and foreign operations amounted to $6,085,192 and $11,295,273, respectively, for the year ended December 31, 2011. The components of the Company’s loss before income tax expense attributable to domestic and foreign operations amounted to $(3,002,790) and $2,360,008, respectively, for the year ended December 31, 2010. The components of the Company’s income before income tax expense attributable to domestic and foreign operations amounted to $3,344,531 and $542,899, respectively, for the year ended December, 2009. The income tax provision differs from the amount of income tax determined by applying the U.S. federal income tax rate to pretax income (loss) from continuing operations for the years ended December 31, 2011, 2010, and 2009, due to the following:

	2011			2010			2009
Computed “expected” tax expense	$	5,909,358		$	(218,546	)	$	1,321,726
Increase (decrease) in income taxes resulting from:
Change in effective rates used for deferred taxes	(503,693		)	—			—
Nondeductible expenses and other	534,742			548,943			407,168
State and local taxes, net of federal benefit	606,843			249,503			278,917
	$	6,547,250		$	579,900		$	2,007,811

Net deferred tax liabilities consist of the following components as of December 31, 2011 and 2010:

	2011			2010
Deferred tax assets
Foreign tax credits	$	2,034,130		$	250,190
Net operating loss carry forwards	776,647			933,537
Other	—			4,369
Total deferred tax assets	2,810,777			1,188,096
Deferred tax liability
Property, equipment, and intangible asset	(10,068,353		)	(5,975,719		)
Total deferred tax liabilities	$	(7,257,576	)	$	(4,787,623	)

The components giving rise to the net deferred tax items described above have been included in the accompanying balance sheets as of December 31, 2011 and 2010, as follows:

	2011			2010

Current assets	$	—		$	—
Noncurrent (liabilities)	(7,257,576		)	(4,787,623		)
	$	(7,257,576	)	$	(4,787,623	)

As of December 31, 2011, the Company has U.S. net operating loss carry forwards for U.S. federal income tax purposes of approximately $2.3 million. These net operating losses are available to offset future federal taxable income, if any, and expire from 2027 through 2030. The amount of net operating loss carry forwards that may reduce federal income taxes in any given year are subject to annual limitations and taxable income requirements. The foreign tax credit of $2,034,130 expires in 2020.

The Company files a U.S. consolidated federal income tax return for operating activities in the U.S. and Canada. The Company also files federal and local tax returns in Canada, as well as state tax returns in a number of state and local jurisdictions in the U.S. The Company’s U.S. federal income tax returns filed for 2008 through 2010 are subject to audit by the IRS. The Company’s income tax returns filed in Canada for 2008 through 2010 remain subject to examination by Canadian authorities. As of December 31, 2011 and 2010, the Company had no unrecognized tax benefits within its provision for income taxes.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 08

-Paragraph h

-Article 4

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 109

-Paragraph 136, 172

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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-Name Statement of Financial Accounting Standard (FAS)

-Number 109

-Paragraph 43, 44, 45, 46, 47, 48, 49

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-Name Accounting Standards Codification

-Topic 235

-SubTopic 10

-Section S99

-Paragraph 1

-Subparagraph (SX 210.4-08.(h))

-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

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+ Details

401(k) PLAN

12 Months Ended

Dec. 31, 2011

401(k) PLAN

401(k) PLAN

NOTE J — 401(k) PLAN

The Company has a 401(k) salary deferral plan which covers all employees who have reached the age of 20.5 years and have been employed by the Company for at least one year. The covered employees may elect to have an amount deducted from their wages for investment in the retirement plan. The Company makes contributions to the plan equal to 50% of each participant’s salary reduction contributions to the plan up to 6% of the participant’s compensation. The Company’s matching contribution to the plan was approximately $98,000, $79,000, and $16,000, for the years ended December 31, 2011, 2010, and 2009, respectively.

- Definition

The entire disclosure for pension and other postretirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Implementation Guide (Q and A)

-Number FAS88

-Paragraph 63

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 715

-URI http://asc.fasb.org/topic&trid=2235017

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 158

-Paragraph 7, 21, 22

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-Number 132R

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-Paragraph 8

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Reference 10: http://www.xbrl.org/2003/role/presentationRef

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Reference 11: http://www.xbrl.org/2003/role/presentationRef

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-Number 87

-Paragraph 264

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-Name Emerging Issues Task Force (EITF)

-Number 03-2

-Paragraph 8

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Reference 13: http://www.xbrl.org/2003/role/presentationRef

-Publisher AICPA

-Name Accounting Principles Board Opinion (APB)

-Number 30

-Paragraph 26

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Reference 14: http://www.xbrl.org/2003/role/presentationRef

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-Number FAS106-2

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+ Details

CONCENTRATION OF CREDIT RISK

12 Months Ended

Dec. 31, 2011

CONCENTRATION OF CREDIT RISK

CONCENTRATION OF CREDIT RISK

NOTE K — CONCENTRATION OF CREDIT RISK

The Company sells its geophysical services primarily to large independent oil and gas companies operating in the U.S. and Canada. The Company performs ongoing credit evaluations of its customers’ financial condition and, generally, requires no collateral from its customers.

During 2011, our largest customer accounted for approximately 17% of revenues. During 2010, our largest customer accounted for approximately 15% of revenues. During 2009 our largest customer accounted for approximately 31% of revenues. As of December 31, 2011, two customers accounted for 13% and 12% of outstanding accounts receivable, respectively. As of December 31, 2010, two customers accounted for 18% and 11% of outstanding accounts receivable, respectively. As of December 31, 2009, three customers accounted for 19%, 19%, and 12% of outstanding accounts receivable, respectively. During 2011 and 2010, no vendor represented over 10% of our purchases. During 2009 our two largest vendors accounted for approximately 22% and 10% of our purchases.

- Definition

The entire disclosure for any concentrations existing at the date of the financial statements that make an entity vulnerable to a reasonably possible, near-term, severe impact. This disclosure informs financial statement users about the general nature of the risk associated with the concentration, and may indicate the percentage of concentration risk as of the balance sheet date.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

-Paragraph 15A

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher AICPA

-Name Statement of Position (SOP)

-Number 94-6

-Paragraph 21, 22, 24

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Reference 3: http://www.xbrl.org/2003/role/presentationRef

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-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

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-Paragraph 21

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+ Details

CONTINGENCIES

12 Months Ended

Dec. 31, 2011

CONTINGENCIES

CONTINGENCIES

NOTE L — CONTINGENCIES

In conducting its activities, the Company from time to time is the subject of various claims arising from the ordinary course of business. In the opinion of management, the ultimate resolution of such claims is not expected to have a material adverse effect upon the financial position of the Company.

- Definition

The entire disclosure for loss and gain contingencies. Describes any existing condition, situation, or set of circumstances involving uncertainty as of the balance sheet date (or prior to issuance of the financial statements) as to a probable or reasonably possible loss incurred by an entity that will ultimately be resolved when one or more future events occur or fail to occur, and typically discloses the amount of loss recorded or a range of possible loss, or an assertion that no reasonable estimate can be made.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

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-Name Accounting Standards Codification

-Topic 450

-SubTopic 20

-Section 50

-Paragraph 10

-URI http://asc.fasb.org/extlink&oid=6952336&loc=d3e14615-108349

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-Publisher FASB

-Name FASB Interpretation (FIN)

-Number 14

-Paragraph 3

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Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 5

-Paragraph 9, 10, 11, 12

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+ Details

QUARTERLY FINANCIAL DATA - (UNAUDITED)

12 Months Ended

Dec. 31, 2011

QUARTERLY FINANCIAL DATA - (UNAUDITED)

QUARTERLY FINANCIAL DATA - (UNAUDITED)

NOTE M — QUARTERLY FINANCIAL DATA — (UNAUDITED)

The following is a summary of the unaudited quarterly financial information for the two years ended December 31, 2011 and 2010 (in thousands, except per share amounts):

	Three Months Ended
2011	March 31		June 30		September 30		December 31

Revenues	$	50,247	$	30,216	$	31,013	$	39,552
Income from operations	9,014		1,214		1,889		6,048
Net Income	5,764		587		1,047		3,436
Net income per share basic	.30		.03		.05		.18
Net income per share diluted	.30		.03		.05		.18

	Three Months Ended
2010	March 31		June 30			September 30			December 31

Revenues	$	30,294	$	22,481		$	22,844		$	32,700
Income (loss) from operations	1,155		(1,388		)	(1,531		)	1,912
Net Income (loss)	551		(1,211		)	(1,271		)	708
Net income (loss) per share basic	.03		(.06		)	(.07		)	.04
Net income (loss) per share diluted	.03		(.06		)	(.07		)	.04

- Definition

The entire disclosure for the quarterly financial data in the annual financial statements. The disclosure may include a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income or loss before extraordinary items and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished.

+ References+ Details

ENTRY INTO AND SUBSEQUENT TERMINATION OF A MATERIAL DEFINITIVE AGREEMENT

12 Months Ended

Dec. 31, 2011

ENTRY INTO AND SUBSEQUENT TERMINATION OF A MATERIAL DEFINITIVE AGREEMENT

ENTRY INTO AND SUBSEQUENT TERMINATION OF A MATERIAL DEFINITIVE AGREEMENT

NOTE N — ENTRY INTO AND SUBSEQUENT TERMINATION OF A MATERIAL DEFINITIVE AGREEMENT

On March 21, 2011, we disclosed that on March 20, 2011, the Company and Dawson Geophysical Company, a Texas corporation, and 6446 Acquisition Corp., a Texas corporation and a wholly-owned subsidiary of Dawson, entered into an Agreement and Plan of Merger pursuant to which 6446 Acquisition would merge with and into the Company, with the Company continuing after the merger as the surviving entity and a wholly-owned subsidiary of Dawson.

Under the terms of the merger agreement, so long as, two business days prior to the earlier of (1) a meeting of the Company’s shareholders or (2) a special meeting of Dawson’s shareholders, the Average Price (as described below) of Dawson’s common stock is equal to or greater than $32.54 but less than or equal to $52.54, at the effective time of the merger each issued and outstanding common share of the Company (other than common shares owned by the Company, any wholly-owned subsidiary of the Company, Dawson, or 6446 Acquisition) would be automatically converted into the right to receive 0.188 shares of Dawson common stock. If the Average Price was not within the parameters outlined above, the Company and Dawson would seek, in good faith to negotiate a new exchange ratio acceptable to both parties, but subject to each party’s right to terminate the merger agreement if the Company and Dawson were not able to agree on a new exchange ratio within two business days after the second business day prior to the earlier of (1) a meeting of the Company’s shareholders or (2) a special meeting of Dawson’s shareholders. The “Average Price” means the average of the volume weighted average of the trading price of Dawson common stock for the 10 consecutive trading days ending on the trading day that is two business days prior to the earlier of (1) a meeting of the Company’s shareholders or (2) a special meeting of Dawson’s shareholders.

The Company’s Articles of Incorporation provide that a merger transaction must be approved by the holders of at least 80% of the Company’s outstanding common stock.

The Company held a meeting of its shareholders on October 27, 2011. However, two business days prior to October 27, 2011, the Average Price of Dawson’s common stock was below $32.54. As required by the merger agreement, the Company and Dawson negotiated in good faith on October 26 and October 27, 2011, to try to agree to a new exchange ratio acceptable to both parties. However, those negotiations were not successful and, on October 27, 2011, the Company provided Dawson with a written notification of termination of the merger agreement based on both of the following: (1) the inability of the parties to negotiate a new exchange ratio acceptable to both parties; and (2) holders of 80% of the Company’s outstanding common stock on August 29, 2011, the record date, did not approve the merger agreement.

ACQUISITION OF EAGLE CANADA SUPPLEMENTARY DATA

12 Months Ended

Dec. 31, 2011

ACQUISITION OF EAGLE CANADA SUPPLEMENTARY DATA

ACQUISITION OF EAGLE CANADA SUPPLEMENTARY DATA

NOTE O — ACQUISITION OF EAGLE CANADA SUPPLEMENTARY DATA

On October 19, 2009, we disclosed our entry into a Material Definitive Agreement regarding the acquisition of the stock of Eagle Canada, Inc. (“Eagle Canada”), a Delaware corporation. Eagle Canada was a wholly-owned subsidiary of Eagle Geophysical, Inc. and Eagle Geophysical Onshore, Inc. (the “Debtors”) which were debtors in a Chapter 11 bankruptcy proceeding in Houston, Texas. Eagle Canada is in the business of providing seismic data and surveying services to the Canadian energy industry and has its principal place of business located in Calgary, Alberta, Canada. By Order dated October 14, 2009, the Bankruptcy Court approved the sale of the Eagle Canada stock by the Debtors to TGC and authorized the Debtors to enter into a Stock Purchase Agreement with TGC. In accordance with the terms of the Stock Purchase Agreement, the sale transaction closed on October 16, 2009, with TGC acquiring the Eagle Canada stock for a total purchase price of approximately $10.3 million paid from existing cash. The acquisition provided the Company with a new geographic region in which to operate. The seismic recording equipment used by Eagle Canada is interchangeable with that of TGC.

The amounts of Eagle Canada’s revenue and earnings included in our consolidated statement of income for the year ended December 31, 2009, and the unaudited revenue and earnings of the combined entity had the acquisition date been January 1, 2009, are as follows:

	Revenue		Earnings

Actual from 10/15/09 to 12/31/09	$	4,783,892	$	381,366

Supplemental pro forma from 1/1/09 to 12/31/09	$	103,539,881	$	1,584,565

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

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-SubTopic 10

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+ Details

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2011

COMMITMENTS AND CONTINGENCIES.

COMMITMENTS AND CONTINGENCIES

NOTE P — COMMITMENTS AND CONTINGENCIES

During January of 2012, the Company entered into an agreement to purchase 14,200 channels of GSR seismic recording equipment for a total purchase price of approximately $14.7 million to be paid from a $7.7 million note payable from a commercial bank and the remainder from existing cash. The Company took delivery of this equipment during January and February of 2012.

- Definition

The entire disclosure for commitments and contingencies.

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+ Details

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical)	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
Common stock dividend, interest rate (as a percent)	5.00%	5.00%