<PAGE>
                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                   FORM 10-QSB

(Mark One)

|X|      Quarterly  Report  pursuant  to Section  13 or 15(d) of the  Securities
         Exchange Act of 1934 for the quarterly period ended September 30, 1995;
         or

|_|      Transition report pursuant to Section 13 or 15(d) of the Securities
         Exchange Act of 1934 for the transition period from _______ to_______

                          .

Commission File Number 0-18754
                       -------
                          Black Warrior Wireline Corp.

 -------------------------------------------------------------------------------

        (Exact Name of Small Business Issuer as Specified in its Charter)

         Delaware                                            11-2904094
--------------------------------                          -------------------
(State or Other Jurisdiction of                           (I.R.S. Employer
Incorporation or Organization)                            Identification No.)

               3748 Highway 45 North, Columbus, Mississippi 39701

 -------------------------------------------------------------------------------

                    (Address of Principal Executive Offices)
                                   (Zip Code)

                                 (601) 329-1047
                  --------------------------------------------
                (Issuer's Telephone Number, Including Area Code)

         Indicate  by a check mark  whether the Issuer (1) has filed all Reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934 during the proceeding 12 months (or for such shorter period that the Issuer
was  required  to file such  Reports),  and (2) has been  subject to such filing
requirements for the past 90 days.

                                                YES    [X]        [NO]

         Indicate  the  number of  shares  outstanding  of each of the  issuer's
classes of common stock, as of the latest practicable date.

                    Class                     Outstanding at November 10, 1995
           Common Stock, par value                    70,846.29 shares
              $.0005 per share

                               Page 1 of 12 Pages

<PAGE>
                          BLACK WARRIOR WIRELINE CORP.

                         QUARTERLY REPORT ON FORM 10-QSB

                                      INDEX

PART I -- FINANCIAL INFORMATION
<TABLE>
<CAPTION>

                                                                                                                          Page
                                                                                                                          ----
<S>                                                                                                                        <C>
Item 1.           Financial Statements

                  Consolidated Balance Sheets -- September 30, 1995
                  and December 31, 1994                                                                                     3

                  Consolidated Statements of Operations --
                  Three Months Ended September 30, 1995 and 1994                                                            4

                  Consolidated Statements of Operations --
                  Nine Months Ended September 30, 1995 and 1994                                                             5

                  Consolidated Statements of Cash Flows --
                  Nine Months Ended September 30, 1995 and 1994                                                             6

                  Notes to Financial Statements --
                  Nine Months Ended September 30, 1995 and 1994                                                             7

Item 2.           Management's Discussion and Analysis of Financial
                  Condition and Results of Operations                                                                       8

PART II -- OTHER INFORMATION

Item 6.           Exhibits and Reports on Form 8-K                                                                         10
</TABLE>

                               Page 2 of 12 Pages
<PAGE>
PART I -- FINANCIAL INFORMATION

     Item 1.         Financial Statements

                  BLACK WARRIOR WIRELINE CORP. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>

                                                                  September             December 
                                                                     30,                   31,
                                                                    1995                  1994

<S>                                                             <C>                   <C>               
                                        ASSETS
Current Assets:
   Cash and cash equivalents                                    $    91,617           $    40,453
   Accounts receivable, less allowance for
     doubtful accounts, of $101,178 and $117,540
     at September 30, 1995 and December 31, 1994,
     respectively                                                 1,077,928               875,012
   Inventories                                                      197,957               228,193
   Prepaid expenses                                                  12,932                73,754
   Federal income tax receivable                                     80,432                80,432
   Other Receivables                                                                       20,435
                                                                 ----------            ----------
          Total current assets                                    1,460,866             1,318,279

Property, plant & equipment, less accumulated
   depreciation of $3,444,166 and $3,200,235 at
   September 30, 1995 and December 31, 1994,
   respectively                                                   1,194,802             1,380,157
Other assets                                                          5,539                 3,839
                                                                 ----------            ----------
          Total assets                                          $ 2,661,207           $ 2,702,275
                                                                 ==========            ==========

                LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
   Accounts payable                                             $   832,428           $   867,815
   Accrued salaries and vacation                                     77,580                61,721
   Accrued interest payable                                       1,659,019             1,276,675
   Other accrued expenses                                           140,939               155,958
   Notes payable to bank                                             84,173                82,227
   Notes payable, related parties                                   636,331               623,531
   Current maturities of long-term debt and
     capital lease obligations                                    2,178,811             2,151,444
                                                                 ----------            ----------
          Total current liabilities                               5,609,281             5,219,371

Long-term debt and capital lease obligations,
      less current maturities                                       395,343               237,341
                                                                 ----------            ----------
          Total liabilities                                       6,004,624             5,456,712

Common stock, par value $.0005 per share,
     50,000,000 shares authorized, 14,169,258
     shares issued June 30, 1995 and December 31, 1994                7,084                 7,084
Additional paid-in capital                                        1,992,695             1,992,695
Accumulated deficit                                              (4,759,803)           (4,170,823)
Treasury stock, at cost, 814,626 shares                            (583,393)             (583,393)
                                                                 ----------            ----------
          Total stockholders' equity                             (3,343,417)           (2,754,437)
                                                                 ----------            ----------
          Total liabilities and stockholders' deficit           $ 2,661,207           $ 2,702,275
                                                                 ==========            ==========
</TABLE>

                               Page 3 of 12 Pages

<PAGE>
                  BLACK WARRIOR WIRELINE CORP. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS


<TABLE>
<CAPTION>

                                                           Three Months Ended
                                                   -------------------------------------
                                                     September               September 
                                                        30,                     30,
                                                       1995                    1994
                                                   ------------            -------------
<S>                                                <C>                    <C>         
Net revenues                                       $  1,474,819           $  1,575,786

Operating costs and expenses                         (1,379,358)            (1,452,034)

Depreciation and amortization expense                  (155,678)              (194,798)
                                                   ------------            -------------
                  Operating income (loss)               (60,217)               (71,046)

Interest expense and amortization
     of debt discount and expense                      (152,660)              (141,212)

Other income                                             32,725                 35,122
                                                   ------------            -------------

                  Net income (loss)                $   (180,152)          $   (177,136)
                                                   ============            =============

Earnings (loss) per average
     share                                         $      (0.01)          $      (0.01)
Average common and common equivalent
     shares outstanding                              14,169,258             14,169,258
                                                   ============            =============
</TABLE>


                               Page 4 of 12 Pages

<PAGE>

                  BLACK WARRIOR WIRELINE CORP. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>

                                                            Nine Months Ended
                                                    -----------------------------------
                                                      September             September 
                                                         30,                    30,
                                                        1995                   1994
                                                    -------------          ------------
<S>                                                <C>                    <C>         
Net revenues                                       $  4,639,173           $  4,611,159

Operating costs and expenses                         (4,318,393)            (4,500,709)

Depreciation and amortization expense                  (531,369)              (585,823)
                                                     ----------            -----------
                  Operating income (loss)              (210,589)              (475,373)

Interest expense and amortization
     of debt discount and                              (453,580)              (422,046)

Other income                                             75,201                123,374
                                                     ----------            -----------

                  Net income (loss)                $   (588,968)          $   (774,045)
                                                     ==========            ===========

Earnings (loss) per average
     share                                         $      (0.04)          $      (0.05)
Average common and common equivalent
     shares outstanding                              14,169,258             14,169,258
                                                     ==========            ===========

</TABLE>

                               Page 5 of 12 Pages

<PAGE>
                  BLACK WARRIOR WIRELINE CORP. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>

                                                                 Nine Months Ended
                                                          ----------------------------------
                                                           September           September 
                                                              30,                  30,
                                                             1995                 1994
                                                          ------------         -------------
<S>                                                        <C>                 <C>      
Net cash flows from operating activities:                  $ 138,487           $ 204,756
                                                          ----------           ---------
Cash flows used in investing activities:
     Proceeds from the sale of fixed assets                   50,250              54,550
     Acquisition of property,
          plant and equipment                               (303,556)           (223,111)
                                                          ----------           ---------
     Net cash flow provided
          by investing activities                           (253,306)           (168,561)
                                                          ----------           ---------
Cash flows provided by financing activities:
     Net advances on receivables financed                          0                   0
     Increase in notes payable                               329,878             204,254
     Reductions in notes payable                            (163,894)           (218,123)
                                                          ----------           ---------
      Net cash flow used in financing activities             165,984             (13,869)

Net increase (decrease) in cash                               51,164              58,326
Cash - beginning of period                                    40,453              60,816
                                                          ----------           ---------
Cash - end of period                                       $  91,617           $ 119,142
                                                          ==========           =========

Supplemental disclosure of cash flow information:

          Interest paid                                    $  66,176           $  45,621
          Taxes paid                                       $       0           $       0
</TABLE>


                               Page 6 of 12 Pages

<PAGE>

                  BLACK WARRIOR WIRELINE CORP. AND SUBSIDIARIES
                          NOTES TO FINANCIAL STATEMENTS

1.       GENERAL

         The accompanying financial statements reflect all adjustments which, in
         the opinion of management, are necessary for a fair presentation of the
         financial  position of Black Warrior  Wireline Corp.  and  subsidiaries
         (the "Company"). Such adjustments are of a normal recurring nature. The
         results of  operations  for the  interim  periods  are not  necessarily
         indicative  of the  results  to be  expected  for the  full  year.  The
         Company's  Annual  Report on Form  10-KSB  for the  fiscal  year  ended
         December 31, 1994 should be read in conjunction with this document.

2.       LONG-TERM DEBT

         The  Company is in default of its 14%  subordinated  debenture  and 13%
         convertible  subordinated  debenture  agreements  due to its failure to
         make  scheduled  principal  and interest  payments.  Debenture  holders
         representing $800,000 of the 14% subordinated debentures outstanding at
         December  31,  1994 and 1993 have  notified  the Company of default and
         requested  immediate  payment of the  entire  outstanding  balance.  In
         accordance  with  the  default   provisions  in  the  14%  subordinated
         debenture  and  13%  subordinated  debenture  agreements,   the  stated
         interest rate was increased to 2% per month effective November 30, 1991
         and June 30, 1992, respectively.  The default on the 14% debentures has
         caused the Company to be in violation of certain  covenants  related to
         the 13% convertible subordinated debentures.

         In addition,  the Company is in violation  of several  other  covenants
         related  to  the  14%  and  13%  subordinated   debenture   agreements,
         including,  but not limited to, timely  payment of taxes and compliance
         with provisions and terms of all material  agreements and  commitments.
         Although the  remaining  14%  debenture  holders and the 13%  debenture
         holders  have  not  notified  the  Company  regarding  acceleration  of
         payment,  the  debenture  holders  have the right to require  immediate
         payment.  Accordingly,  the entire balances of the debentures have been
         classified as current liabilities.

         Under  the  covenants  of the  debenture  agreements,  the  Company  is
         prohibited  from declaring or paying any dividends to  stockholders  as
         long as the debentures are in default.

3.       NOTES PAYABLE - RELATED PARTIES

         In  October  1991,  the  Company  entered  into  an  agreement  with  a
         partnership  consisting  of  officers  and  spouses of  officers of the
         Company,  whereby such  partnership  advanced  funds to the Company for
         operations.  These  advances  are  collateralized  by certain  accounts
         receivable of the Company and bear interest at a rate of prime plus 2%.
         At September 30, 1995, the Company owed the partnership $289,293.

                               Page 7 of 12 Pages

<PAGE>
         The Company had an outstanding  balance of $347,037 in notes payable at
         September  30,  1995 to the  President  of the  Company and his spouse.
         These notes are collateralized by certain assets of the Company.

Item 2.    Management's  Discussion and Analysis of Financial  Condition and
           Results of Operations

Results of Operations

         The Company experienced a net loss of $180,152 for the third quarter of
1995 as compared to a net loss of $177,136  for the same period of 1994.  During
the first  nine  months  of 1995,  the  Company  had a net loss of  $588,968  as
compared to a net loss of $744,045 for the first nine months of 1994. Continuing
efforts  to  control  costs and  improved  margins  generated  by the  Company's
directional drilling services led to this improvement.

         Revenues  decreased by $100,967 to $1,474,819  for the third quarter of
1995 as compared to  $1,575,786  in the same  period in 1994.  Revenues  for the
first  nine  months of 1995  increased  $28,014 to  $4,639,173  as  compared  to
$4,611,159  for the same period last year.  While  revenues  remain  stable,  as
compared to the same period of 1994, a decrease in cased hole revenue was offset
by an increase in revenue from directional  drilling  services.  The decrease in
cased hole  revenue is the result of a temporary  reduction in activity by three
of the Company's  major  customers in West Texas.  Revenues by business line are
summarized below:

                               Nine Months Ended         Three Months Ended
                         -----------------------------------------------------
                            September   September     September      September
                         -----------------------------------------------------
                            30, 1995    30, 1994       30, 1995      30, 1994

Wireline services
(logging, directional
services, perforating)   $ 3,473,888 $ 3,237,590  $   1,104,774   $ 1,135,970

Completion (workover
services)                $ 1,010,861 $ 1,113,544        324,240       349,587

Tools and Packers
(sales and rentals of
bridge plugs)            $   154,424 $   260,025         45,805        90,229
                         -----------------------------------------------------
         Total           $ 4,639,173 $ 4,611,159  $   1,474,819   $ 1,575,786
                         ====================================================


         Costs and expenses  decreased $72,676 for the third quarter of 1995 and
$182,316  for the first nine months of 1995 as  compared to the same  periods in
1994.  This  decrease  was due to a reduction in  insurance  expense  related to
workman's  compensation from the same period of 1994 and the Company's continued
efforts to

                               Page 8 of 12 Pages

<PAGE>

reduce costs.  Salaries increased $84,289 for the first nine months of 1995 with
the total number of employees  decreasing to 84 at September 30, 1995 from 87 at
September 30, 1994.  This increase was the result of an effort by the Company to
remain competitive and retain its key employees.

         Interest expense increased by $11,448 for the third quarter of 1995 and
$31,534 for the first nine  months of 1995 as  compared  to the same  periods in
1994.  Three to five year notes were used to purchase  new  vehicles  during the
last quarter of 1994 and the first nine months of 1995.  Net new  borrowing  for
the first nine months of 1995 totaled $329,878. Interest on the debt ranged from
prime to 11.75%.

         The Company is continually reevaluating its strengths and weaknesses to
meet the  demands  of an  evolving  oil and gas  industry.  Resources  are being
redirected  around  services  in which the  Company  maintains  key  competitive
advantages.  One such area is directional drilling services. Demand for these is
strong and the Company expects this demand to continue.

         The Company is  continuing  its plan to modernize  its  wireline  truck
fleet.  The Company is  purchasing  one new tractor  every 120 days and building
technologically  advanced wireline trucks  "in-house."   This plan will save the
Company approximately $100,000 from the cost of purchasing a new, fully equipped
wireline  truck.  The third of five trucks the company  will build is  currently
under  construction  and should be ready for  service  in the fourth  quarter of
1995. The Company plans to continue  upgrading its rolling stock until the fleet
is  competitive  with the  other  companies  in the  industry.  The  Company  is
currently  evaluating  which new down hole  tools  will  best  complement  these
trucks.  When this  evaluation is complete,  the Company will seek  financing to
acquire this equipment With this new  technology,  the Company will increase its
activity in the  "deep-hole"  sector of the market.  In this sector,  where well
depths are below 10,000 feet,  there are fewer  competitors  and price discounts
are much less than shallower wells.

         The  Company,  whose  Common  Stock  is trade  on OTC  Bulletin  Board,
effected a reverse  stock split on a 1-for-200  basis  effective  on October 30,
1995.  The numbers in the  financial  statements of this document do not reflect
the reverse split on October 30, 1995.

Liquidity and Capital Resources

         Cash flow provided by Company  operations  was $138,487 for the quarter
ended September 30, 1995 as compared to $204,756 for the quarter ended September
30, 1994.  This decrease is a result of purchasing  supplies and tools with cash
rather  than on account.  The  Company had a net loss of $588,968  for the first
nine  months of the year  compared  to a net loss of 774,045 for the same period
last year. Uses of the Company's cash went to reduce current  liabilities and to
repay $163,894 net principal indebtedness.

         The  Company is in default in payment  of  principal  and  interest  on
$900,000 in aggregate  principal amount of its 14%  Subordinated  Debentures due
August 31, 1993. At September 30, 1995, the Company had failed to make principal
payments

                               Page 9 of 12 Pages
<PAGE>
aggregating  $900,000  and  interest  payments  aggregating  $734,500  including
interest at the penalty  rate,  as discussed  below.  The holders of $800,000 of
such  debentures have given notice of the default and  acceleration  thereunder.
Under the terms of the debentures, the entire principal balance plus accrued but
unpaid interest is due by virtue of the notice of default and  acceleration.  In
addition, the stated interest rate applicable to the debentures was increased to
2% per month as of November 30, 1991.

         The  Company  is also in  default  of  payment  of  interest  under the
Company's   $1,100,000  in  outstanding   aggregate   principal  amount  of  13%
Convertible  Subordinated Debentures due August 31, 1995. At September 30, 1995,
interest arrearages amounted to $826,750.

         The Company is currently negotiating a restructuring of both classes of
debentures in an effort to resolve the defaults in a manner which would minimize
or  reduce  the  potential  adverse  effect  on the  Company's  liquidity.  Such
negotiations  include,  but are not limited to, an  exchange  of  principal  for
equity.  However,  no agreements with respect to such a resolution are in place.
Even if such  arrearages  could be resolved on a basis favorable to the Company,
the Company will still require improved cash flow from operations and additional
working  capital  to meet its  obligations.  Therefore,  the  Company is seeking
commitments  from  investment  bankers  to assist the  Company  in raising  such
capital in the financial markets.

PART II -- OTHER INFORMATION

Item 6.           Exhibits and Reports on Form 8-K.

(a)      Exhibits

                  27.      Financial Data Schedule

(b)      Reports on Form 8-K

                  The  Company  filed no reports on Form 8-K during the  quarter
                  for which this Quarterly Report on Form 10-QSB is filed.

         No other  Items of Part II are  applicable  to the  Registrant  for the
period covered by this Quarterly Report on Form 10-QSB.

                               Page 10 of 12 Pages

<PAGE>

                                   SIGNATURES

         Pursuant to the  requirements  of the Securities  Exchange Act of 1934,
the  Registrant  has duly  caused  this Report to be signed on its behalf by the
undersigned thereunto duly authorized.

                                               BLACK WARRIOR WIRELINE CORP.
                                               ----------------------------
                                                      (Registrant)

Date: November     10    , 1995                  /s/ WILLIAM L. JENKINS
               ----------                      ---------------------------
                                                    William L. Jenkins
                                                      President and
                                                  Chief Operating Officer
                                               (Principal Executive, Financial
                                                   and Accounting Officer)

                               Page 11 of 12 Pages

<PAGE>
EXHIBIT 27

[GRAPHIC OMITTED]

                               Page 12 of 12 Pages
<PAGE>
[ARTICLE] 5
[MULTIPLIER] 1
[CURRENCY] U.S. DOLLARS
<TABLE>
<S>                             <C>
[PERIOD-TYPE]                   9-MOS
[FISCAL-YEAR-END]                          DEC-31-1995
[PERIOD-END]                               SEP-30-1995
[EXCHANGE-RATE]                                      1
[CASH]                                         $91,617
[SECURITIES]                                        $0
[RECEIVABLES]                               $1,077,928
[ALLOWANCES]                                ($101,178)
[INVENTORY]                                   $197,957
[CURRENT-ASSETS]                            $1,460,866
[PP&E]                                      $4,638,968
[DEPRECIATION]                            ($3,444,166)
[TOTAL-ASSETS]                              $2,661,207
[CURRENT-LIABILITIES]                       $5,609,281
[BONDS]                                     $2,000,000
[COMMON]                                        $7,084
[PREFERRED-MANDATORY]                               $0
[PREFERRED]                                         $0
[OTHER-SE]                                  ($583,393)
[TOTAL-LIABILITY-AND-EQUITY]                $2,661,207
[SALES]                                     $4,639,173
[TOTAL-REVENUES]                            $4,639,173
[CGS]                                               $0
[TOTAL-COSTS]                               $4,771,973
[OTHER-EXPENSES]                            $4,318,393
[LOSS-PROVISION]                                    $0
[INTEREST-EXPENSE]                            $453,580
[INCOME-PRETAX]                                     $0
[INCOME-TAX]                                        $0
[INCOME-CONTINUING]                         ($588,968)
[DISCONTINUED]                                      $0
[EXTRAORDINARY]                                     $0
[CHANGES]                                           $0
[NET-INCOME]                                ($588,968)
[EPS-PRIMARY]                                  ($0.04)
[EPS-DILUTED]                                       $0
</TABLE>