EXHIBIT 10.1


                              EMPLOYMENT AGREEMENT

                                 BY AND BETWEEN
                          BLACK WARRIOR WIRELINE CORP.
                                       AND
                               WILLIAM L. JENKINS



         Agreement made this 18th day of September,  1996, between Black Warrior
Wireline  Corp., a Delaware  corporation  (the "Company") and William L. Jenkins
(the "Executive").

         The Company is desirous of continuing  the  employment of the Executive
as its President,  Chief Executive Officer and a Director,  and the Executive is
desirous of continuing in the employment of the Company in those capacities.

         The Company and the Executive desire to set forth in this Agreement the
terms and  conditions on which the Executive will continue to be employed by the
Company as its  President,  Chief  Executive  Officer  and a Director  with this
Agreement  superseding  and replacing the  Employment  Agreement  dated April 1,
1994.

         Accordingly,  in  consideration  of the  promises  and  the  respective
covenants and  agreements of the parties herein  contained,  and intending to be
legally bound hereby, the parties hereto agree as follows:

         1.       EMPLOYMENT

                  The Company  hereby  agrees to employ the  Executive,  and the
Executive  hereby agrees to serve the Company,  on the terms and  conditions set
forth herein.

         2.       TERM

                  The  employment of the Executive by the Company as provided in
Section 1 will commence on the date hereof and end on September 30, 1999, unless
further extended or sooner terminated as hereinafter provided.



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         3.       POSITION AND DUTIES

                  The  Executive  shall  serve  as  President,  Chief  Executive
Officer and a Director of the Company, and shall have such  responsibilities and
authority consistent with those positions as may, from time to time, be assigned
to the Executive by the Board of Directors of the Company.  The Executive  shall
devote  substantially  all his  working  time and  efforts to the  business  and
affairs of the Company.

         4.       PLACE OF PERFORMANCE

                  In connection with the Executive's  employment by the Company,
the Executive shall be based at the principal  executive  offices of the Company
located in Columbus,  Mississippi,  except for required  travel on the Company's
business.

         5.       COMPENSATION AND RELATED MATTERS

                  (a) SALARY.  During the period of the  Executive's  employment
hereunder, the Company shall pay to the Executive a base salary at a rate of not
less than  $110,000  per annum in equal  monthly  or other  installments.  It is
agreed that  Executive's  base salary for each of the two years ended  September
30, 1998 and September  30, 1999 shall be increased to reflect  increases in the
cost of living by an amount equal to the result obtained by multiplying $110,000
by the  percentage  increase in the Consumer  Price Index for Urban Wage Earners
and Clerical  Workers (U.S.  City Average)  published by the U.S.  Department of
Labor, Bureau of Labor Statistics,  for each of the months of September 1997 and
September  1998,  respectively,  over the Index for the month of September 1996.
Such increased salary shall be payable in the same manner as the base salary.

                  (b) EXPENSES.  The Company shall  reimburse  Executive for all
normal, usual and necessary expenses incurred by Executive in furtherance of the
business  and  affairs  of  the  Company  against  receipt  by  the  Company  of
appropriate  vouchers  or  other  proof  of  the  Executive's  expenditures  and
otherwise in accordance with such expense reimbursement policy as may, from time
to time, be adopted by the Board of Directors of the Company.

                  (c) OTHER  BENEFITS.   The  Company  shall  maintain  in  full
force and effect,  and the Executive shall be entitled to participate in, all of
its  employee  benefit  plans and  arrangements  in effect on the date hereof or
plans or arrangements  providing the Executive with at least equivalent benefits
thereunder (including,  without limitation, each pension and retirement plan and
arrangement,  supplemental  pension and retirement plan and  arrangement,  stock
option  plan,  life  insurance  and health and  accident  plan and  arrangement,
medical insurance plan,  disability plan, survivor income plan,  relocation plan
and vacation plan). The Company shall not

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make any changes in such plans or arrangements  which would adversely affect the
Executive's rights or benefits thereunder, unless such change occurs pursuant to
a program  applicable to all  executives of the Company and does not result in a
proportionately  greater reduction in the rights of or benefits to the Executive
as compared  with any other  executive of the Company.  The  Executive  shall be
entitled to participate in or receive  benefits under any employee  benefit plan
or arrangement made available by the Company in the future to its executives and
key management  employees,  subject to and on a basis consistent with the terms,
conditions and overall  administration of such plans and  arrangements.  Nothing
paid to the Executive under any plan or arrangement  presently in effect or made
available in the future  shall be deemed to be in lieu of the salary  payable to
the Executive pursuant to paragraph (a) of this Section.


                  (d) VACATIONS.  The Executive shall be entitled to vacation in
accordance  with the Company's  existing  policies.  The Executive shall also be
entitled to all paid holidays given by the Company to its executives.

                  (e)  SERVICES   FURNISHED.   The  Company  shall  furnish  the
Executive with office space,  stenographic  assistance and such other facilities
and services as shall be suitable to the  Executive's  position and adequate for
the performance of his duties as set forth in Section 3 hereof.

                  (f) OPTIONS. Subject to execution of this Agreement, Executive
shall be granted an option to purchase  100,000  shares of the Company's  Common
Stock,  exercisable for a period of ten (10) years at an exercise price of $2.00
per share (a price  determined  to be not less than the fair market value of the
Common Stock on September _____,  1996).  Such option shall be immediately fully
exercisable. Provided the Company's operating results equal or exceed 85% of the
benchmark operating results agreed to between the Company and the Executive, the
Executive  shall be granted  as of the last day of the  fiscal  year as to which
such benchmark  operating  results  relate,  an option to purchase an additional
50,000 shares of the Company's  Common Stock.  Such option shall be  exercisable
for a period of ten (10) years at a price  equal to the closing bid price of the
Company's  Common Stock on the last business day of such fiscal year.  The grant
of the foregoing option shall not preclude the participation of the Executive in
any other stock option plan of the Company.

         6.       OFFICES

                  The Executive agrees to serve without additional compensation,
if  elected  or  appointed  thereto,  as a  Director  of any  of  the  Company's
subsidiaries  and in one  or  more  executive  offices  of any of the  Company's
subsidiaries,  provided that the Executive is indemnified for serving in any and
all such  capacities on a basis no less favorable than is currently  provided by
Article VII of the Company's By-Laws. Executive agrees that, upon

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termination of his  employment  with the Company for any reason  whatsoever,  he
will resign  from all  positions  as an  executive  officer and  Director of the
Company and all of its subsidiaries.


         7.       CONFIDENTIAL INFORMATION

                  Executive  covenants  and agrees  that he will not  (except as
required  in the  course  of his  employment),  while in the  employment  of the
Company or  thereafter,  communicate  or divulge  to, or use for the  benefit of
himself,  or any other person,  firm,  association or  corporation,  without the
consent of the Company, any information concerning any inventions,  discoveries,
improvements,    processes,   formulas,   apparatus,   technology,    expertise,
technological  know-how,  equipment,  methods, trade secrets,  research,  secret
data,  costs or uses or  purchasers of the  Company's  products or services,  or
other confidential matters possessed,  owned, or used by the Company that may be
communicated  to,  acquired by, or learned of by the Executive in the course of,
or as a  result  of,  his  employment  with the  Company.  All  records,  files,
memoranda,  reports,  price lists, customer lists,  drawings,  plans,  sketches,
documents,  equipment,  and the like,  relating to the  business of the Company,
which the Executive shall use or prepare or come into contact with, shall remain
the sole property of the Company.

         8.       COMPETITION

                  (a)  During the period of the  Executive's  employment  by the
Company,  and, in the event  Executive  terminates his  employment  prior to the
termination date of this Agreement provided in Section 2 hereof, for a period of
eighteen (18) months after such  employment,  in the event Executive  terminates
his  employment  prior to the  termination  date of this  Agreement  provided in
Section 2 hereof,  Executive  will not (i) engage in; (ii) have any  interest in
any person,  firm, or corporation that engages in; or (iii) perform any services
for any person,  firm,  or  corporation  that  engages in  competition  with the
Company,  or any of its subsidiaries in the development,  research  relating to,
manufacture,  processing,  marketing,  distribution,  or sale of any products or
services  that were the  subject of  activities  of the  Company,  or any of its
subsidiaries, at any time during the period of his employment by the Company, in
any area in which such business shall be carried on.

                  (b) In the event Executive  terminates his employment prior to
the termination date of this Agreement  provided in Section 2 hereof,  Executive
will not, directly or indirectly,  employ, solicit for employment,  or advise or
recommend  to any other person that they employ or solicit for  employment,  any
employee  of the  Company  during the period of  Executive's  employment  by the
Company and for a period of two (2) years thereafter.

                  (c)  Notwithstanding  any  provision  of this Section 8 to the
contrary,  Executive may own no more than three percent (3%) of the total shares
of all classes of stock outstanding of

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any corporation  having  securities  registered with the Securities and Exchange
Commission pursuant to the Securities Exchange Act of 1934.


                  (d) Executive  represents that his experience and capabilities
are such that the provisions of this Section 8 will not prevent him from earning
a livelihood.

         9.       TERMINATION

                  Notwithstanding   any  provision  of  this  Agreement  to  the
contrary, Executive's employment shall terminate upon his death, and the Company
at any time may  terminate his  employment by giving him written  notice of such
termination  (i) for cause,  as  hereinafter  defined;  (ii) if Executive  shall
violate any of the  provisions of Sections 7 or 8 hereof;  or (iii) if Executive
shall become  physically or mentally  incapacitated and by reason thereof unable
to perform his duties here under for a period of ninety (90)  consecutive  days.
For the purpose of clause (i) of this  subsection  9, "for cause" shall mean any
of the  following  events:  (x)  conviction  in a court  of law of any  crime or
offense  involving  money  or  other  property  of  the  Company,  or any of its
subsidiaries,  or any felony, or (y) violation of specific written directions of
the Board of Directors of the Company, provided,  however, no discharge shall be
deemed  "for  cause"  under this  clause (y) unless  Executive  shall have first
received  written notice from the Board of Directors of the Company  advising of
the acts or  omissions  that  constitute  such  violation,  and  such  violation
continues  uncured for a period of thirty (30) days after  Executive  shall have
received such notice.

         10.      SUCCESSORS; BINDING AGREEMENT

                  (a) The Company will require any successor  (whether direct or
indirect,   by  purchase,   merger,   consolidation  or  otherwise)  to  all  or
substantially all of the business and/or assets of the Company,  by agreement in
form and substance satisfactory to the Executive,  to expressly assume and agree
to perform  this  Agreement  in the same  manner and to the same extent that the
Company would be required to perform if no such  succession had taken place.  As
used in this Agreement, "Company" shall mean the Company as hereinbefore defined
and any successor to its business  and/or assets as aforesaid which executes and
delivers  the  agreement  provided  for in this  Section 11, or which  otherwise
becomes bound by all the terms and  provisions of this Agreement by operation of
law.

                  (b) This Agreement, and all rights of the Executive hereunder,
shall inure to the benefit of and be enforceable by the Executive's  personal or
legal   representatives,    executors,   administrators,    successors,   heirs,
distributees, devisees and legatees. If the Executive should die

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 while any amounts  would still be payable to him  hereunder if he had continued
to live, all such amounts,  unless otherwise  provided herein,  shall be paid in
accordance with the terms of this Agreement to the Executive's devisee, legatee,
or other designee or, if there be no such designee, to the Executive's estate.


         11.      NOTICE

                  For the purposes of this Agreement,  notices,  demands and all
other  communications  provided  for in this  Agreement  shall be in writing and
shall be deemed to have been duly given  when  delivered  or  (unless  otherwise
specified) mailed by United States  registered mail,  return receipt  requested,
postage prepaid, addressed as follows:

                  If to the Executive:

                  William L. Jenkins
                  432 Old Country Lane
                  Columbus, Mississippi  39201


                  If to the Company:

                  Black Warrior Wireline Corp.
                  3748 Highway #45 North
                  Columbus, Mississippi  39701


or to such other address as any party may have furnished to the other in writing
in  accordance  herewith,  except  that  notices of change of  address  shall be
effective only upon receipt.

         12.      MISCELLANEOUS

                  No  provisions of this  Agreement  may be modified,  waived or
discharged unless such waiver, modification or discharge is agreed to in writing
signed by the parties  hereto.  No waiver by either  party hereto at any time of
any breach by the other party hereto of, or  compliance  with,  any condition or
provision of this  Agreement to be performed by such other party shall be deemed
a waiver of similar or dissimilar provisions or conditions at the same or at any
prior or subsequent time. No agreements or  representations,  oral or otherwise,
express or implied,  with respect to the subject matter hereof have been made by
either party which are not set forth expressly in this Agreement. This Agreement
supersedes and replaces the Employment Agreement dated April 1, 1994 between the
Company and Executive which agreement and all

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options agreed to be granted  thereunder is herewith  terminated.  The validity,
interpretation, construction and performance of this Agreement shall be governed
by the laws of the State of Mississippi.


         13.      VALIDITY

                  The  invalidity  or   unenforceability  of  any  provision  or
provisions of this Agreement shall not affect the validity or  enforceability of
any other  provision  of this  Agreement,  which shall  remain in full force and
effect.

         14.      COUNTERPARTS

                  This  Agreement  may be executed in one or more  counterparts,
each of which shall be deemed to be an original,  but all of which together will
constitute one and the same instrument.

         15.      ARBITRATION

                  Any dispute or controversy arising under or in connection with
this Agreement shall be settled  exclusively by arbitration,  conducted before a
panel of three  arbitrators,  in Jackson,  Mississippi,  in accordance  with the
rules of the American  Arbitration  Association then in effect.  Judgment may be
entered on the arbitrator's award in any court having jurisdiction.  The expense
of such arbitration shall be borne by the Company.



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         IN WITNESS  WHEREOF,  the parties have executed  this  Agreement on the
date and year first above written.


                                        Black Warrior Wireline Corp.




                                         By:
                                            ------------------------------------

Attest                                  Name:
                                        Title:






                                        ----------------------------------------
                                         William L. Jenkins