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                                                                EXHIBIT 10.32


                             FIRST AMENDMENT TO THE
                              EMPLOYMENT AGREEMENT
                                    BETWEEN
                        DAILEY PETROLEUM SERVICES CORP.
                             AND JOHN E. BLACKLAWS


        AGREEMENT entered into this 17th day of February, 1997, by and between
Dailey Petroleum Services Corp., a Delaware Corporation ("Employer"), and John
E. Blacklaws ("Employee").

        WHEREAS, Employer and Employee are parties to that certain employment
agreement dated June 25, 1996, ("Agreement").

        WHEREAS, the parties desire to amend the terms of the Agreement to the
set forth herein;

        NOW THEREFORE, Employer and Employee, in consideration of the premises
and mutual agreements herein contained, do hereby agree as follows;

        1.  PRINCIPAL DUTIES. Employee's employment hereunder shall be in the
            capacity of President-Manufacturing Services Division. In such
            capacity, Employee shall perform the duties which he is currently
            responsible as an Employee of Employer. In addition, Employee shall
            perform other duties as may from time to time be prescribed by
            Employer's Board of Directors or senior management and which are
            reasonably related or incidental to the capacity in which Employee
            serves Employer. Employee shall perform his duties hereunder in
            accordance with any lawful instructions, rules, regulations or
            policies made or adopted by Employer's Board of Directors, including
            those applicable to Employer's employees generally. During the
            Employment Period, Employee shall devote his full time, and best
            efforts and skills to the business and interests of Employer during
            Employer's normal working hours, do his utmost to further enhance
            and develop Employer's best interests and welfare, and endeavor to
            improve his ability and knowledge of Employer's business,
            particularly as it relates to his duties hereunder, in an effort to
            increase the value of his services for the mutual benefit of the
            parties hereto. At all times during the term of this Agreement,
            Employee shall project a positive and professional image on behalf
            of Employer.

        2.  Employee and Employer agree, ratify and confirm that the Agreement,
            as amended hereby, remains in full force and effect, and 
            constitutes a valid, binding and enforceable agreement in all 
            respects.

        3.  This First Amendment shall be effective the date first above
            written. To the extent that the terms of this First Amendment
            conflict with terms of the Agreement, the terms of the First
            Amendment shall control.
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        IN WITNESS HEREOF, the parties have executed this Agreement through
their duly authorized officers as of the date set forth on the first page
hereof. 

                                        EMPLOYER:

                                        DAILEY PETROLEUM SERVICES CORP.

                                        By: /s/ JAMES J. PERCLE
                                            ------------------------------
                                        Name:   James J. Percle
                                        Title:  Chief Operating Officer

                                        Address:        One Lawrence Center
                                                        P.O. Box 1863
                                                        2507 North Frazier
                                                        Conroe, Texas 77305

                                        EMPLOYEE:

                                        /s/ JOHN E. BLACKLAWS
                                        -------------------------------
                                        Name: John E. Blacklaws
                                        Address:

                                        12000 Sawmill Number 1013
                                        -------------------------------
                                        The Woodlands, TX 77380
                                        -------------------------------

                            EMPLOYER ACKNOWLEDGEMENT

STATE OF TEXAS          )
                        )
COUNTY OF MONTGOMERY    )

        Before me, the undersigned authority, on this date personally appeared
James J. Percle, Chief Operating Officer, of Dailey Petroleum Services Corp., a
Delaware corporation, known to me to be the person whose name is subscribed to
the foregoing instrument, and acknowledged to me that he executed the same for
the purposes and consideration therein expressed, in the capacity stated, and
as the act and deed of said corporation.

Given under my hand and seal this 17th day of February, 1997.

------------------------                  /s/ VIOLET M. DAY
         [SEAL]                           -----------------------------------
     VIOLET M. DAY                        Notary Public in and for
 MY COMMISSION EXPIRES                    The State of Texas
    OCTOBER 12, 1999                      
------------------------                  My Commission Expires: 10/12/99
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                            EMPLOYEE ACKNOWLEDGEMENT

STATE OF TEXAS        )
                      )
COUNTY OF MONTGOMERY  )

        Before me, the undersigned authority, on this date personally appeared
John E. Blacklaws, known to me to be the person whose name is subscribed to the
foregoing instrument, and acknowledged to me that he executed the same for the
purposes and consideration therein expressed.

Given under my hand and seal this 17th day of February, 1997.


------------------------                  /s/ VIOLET M. DAY
         [SEAL]                           -----------------------------------
     VIOLET M. DAY                        Notary Public in and for
 MY COMMISSION EXPIRES                    The State of Texas
    OCTOBER 12, 1999                      
------------------------                  My Commission Expires: 10/12/99