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, 1996;
         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 equity, as of the latest practicable date.

          Class                               Outstanding at November 12,1996
-----------------------------                 -------------------------------
   Common Stock, par value                              2,144,677 shares
      $.0005 per share

                  Transitional Small Business Disclosure Format

                             YES                        NO   X
                                 -----                     ------

                               Page 1 of 14 Pages

<PAGE>



                          BLACK WARRIOR WIRELINE CORP.

                         QUARTERLY REPORT ON FORM 10-QSB

                                      INDEX


PART I -- FINANCIAL INFORMATION
                                                                           Page

Item 1.           Financial Statements

                  Consolidated Balance Sheets -- September 30, 1996
                  and December 31, 1995                                      3

                  Consolidated Statements of Operations --
                  Three Months Ended September 30, 1996 and 1995             4

                  Consolidated Statements of Operations --
                  Nine Months Ended September 30, 1996 and 1995              5

                  Consolidated Statements of Cash Flows --
                  Nine Months Ended September 30, 1996 and 1995              6

                  Notes to Financial Statements --
                  Nine Months Ended September 30, 1996 and 1995              7

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


PART II -- OTHER INFORMATION

Item 5.           Other Information                                         11

Item 6.           Exhibits and Reports on Form 8-K                          11

                               Page 2 of 14 Pages

<PAGE>




PART I -- FINANCIAL INFORMATION
     Item 1.         Financial Statements

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

                                                                   September 30     December 31
                                                                      1996             1995
                                        ASSETS
<S>                                                              <C>              <C>         
Current Assets:
   Cash and cash equivalents                                     $    163,154     $    284,825
   Accounts receivable, less allowance for
     doubtful accounts of $123,525 and $130,115
     at September 30, 1996 and December 31, 1995,
     respectively                                                   1,297,760         830,384
   Inventories                                                        177,499         185,813
   Prepaid expenses                                                   (55,954)         31,917
   Federal income tax receivable                                       80,432          80,432
   Other receivables                                                                      178
                                                                 ------------     -----------
          Total current assets                                      1,662,891       1,413,549

Property, plant & equipment, less accumulated
   depreciation of $3,596,444 and $3,311,919
   at September 30, 1996 and December 31, 1995,
   respectively                                                     1,621,077       1,306,126

Other assets                                                            5,771           5,405
                                                                 ------------     -----------
          Total assets                                           $  3,289,740     $ 2,725,080
                                                                 ============     ===========   

                         LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
   Accounts payable                                              $    782,911     $   821,254
   Accrued salaries and vacation pay                                   33,923          15,839
   Accrued interest payable                                           221,107       1,214,422
   Other accrued expenses                                             205,217         229,446
   Notes payable to bank                                               38,739          68,575
   Notes payable, related parties                                           0               0
   Current maturities of long-term debt and
     capital lease obligations                                        471,775       1,526,127
                                                                 ------------     -----------
          Total current liabilities                                 1,753,672       3,875,663

Long-term debt and capital lease obligations,
      less current maturities                                         659,342         385,696
                                                                 ------------     -----------
          Total liabilities                                         2,413,014       4,261,359

Common stock, par value $ .0005 per share,
     50,000,000    shares  authorized, 1,448,427
     shares issued at September 30, 1996 and
     759,052 at December 31, 1995                                         725             380

Additional paid-in capital                                          4,237,075       3,375,702
Accumulated deficit                                                (2,777,680)     (4,328,968)
Treasury stock, at cost, 814,626 shares                              (583,393)       (583,393)
                                                                 ------------     -----------
          Total stockholders' equity                                  876,726      (1,536,279)
                                                                 ------------    ------------
          Total liabilities and stockholders' deficit            $  3,289,740    $  2,725,080
                                                                 ============    ============
</TABLE>


                               Page 3 of 14 Pages

<PAGE>



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

                                                                                        Three Months Ended
                                                                       September 30,                        September 30,
                                                                          1996                                  1995
                                                                       -------------------------------------------------

<S>                                                                    <C>                                  <C>        
Net revenues                                                           $  2,053,346                         $ 1,474,819

Operating costs and expenses                                           $ (1,632,245)                        $(1,379,358)

Depreciation and amortization expense                                  $   (145,042)                        $  (155,678)
                                                                       ------------------------------------------------

         Operating income (loss)                                       $    276,059                         $  (60,217)

Interest expense and amortization
     of debt discount and expense                                      $   (107,249)                        $ (152,660)

Other income                                                           $      7,280                         $   32,725
                                                                       ------------------------------------------------

         Net income (loss) before benefit
         of taxes and extraordinary gain                               $    176,090                         $ (180,152)

Benefit for income taxes                                               $   (595,713)                        $         0
                                                                       ------------------------------------------------
         Net income (loss) before                                      $
         extraordinary gain                                            $    771,803                         $ (180,152)

 Extraordinary gain on extinguishment of
         debt, net of taxes of $595,713                                $  1,014,758                         $         0
         (Note 2)
                                                                       ------------------------------------------------

         Net income (loss)                                             $  1,786,561                         $ (180,152)
                                                                         ==========                         ===========

Earnings (loss) per average of common share:

         Earnings (loss) before tax benefit
         and extraordinary gain                                        $        .12        $        (0.24)
         Benefit for income taxes                                      $        .41        $        (0.24)
         Extraordinary gain, net of taxes                              $        .70        $        (0.24)
         Net income                                                    $       1.23        $        (0.24)

Average common and common equivalent
     shares outstanding                                                   1,448,427               759,052(1)
-------
</TABLE>

(1)  Average common shares  outstanding  September 30, 1995,  reflects 1 for 200
     reverse split effectuated October 31, 1995.

                               Page 4 of 14 Pages

<PAGE>



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

                                                                                  Nine Months Ended
                                                                                  -----------------
                                                                       September 30,                 September 30,
                                                                          1996                          1995
<S>                                                                     <C>                            <C>         
Net revenues                                                            $ 5,200,094                    $ 4,639,173 
                                                                                                                   
Operating costs and expenses                                            $(4,611,438)                   $(4,318,393)
                                                                                                                   
Depreciation and amortization expense                                   $  (420,313)                   $  (531,369)
                                                                        -------------------------------------------
                                                                                                                   
         Operating income (loss)                                        $   168,342                    $  (210,589)
                                                                                                                   
Interest expense and amortization                                                                                  
     of debt discount and expense                                       $  (312,364)                   $  (453,580)
                                                                                                                   
Other income                                                            $    84,861                    $    75,201 
                                                                        -------------------------------------------
                                                                                                                   
         Net income (loss) before benefit                                                                          
         of taxes and extraordinary gain                                $   (59,161)                   $  (588,968)
                                                                                                                   
Benefit for income taxes                                                $  (595,713)                   $         0 
                                                                        -------------------------------------------
                                                                                                                   
                                                                                                                   
         Net income (loss) before                                                                                  
         extraordinary gain                                             $   536,552                    $  (588,968)
                                                                                                                   
                                                                                                                   
Extraordinary gain on extinguishment of                                                                            
         debt, net of taxes of $595,713                                 $ 1,014,758                    $         0 
         (Note 2)                                                                                                  
                                                                        -------------------------------------------
                                                                                                                   
         Net income (loss)                                              $ 1,551,310                    $  (588,968)
                                                                        ===========                    =========== 
                                                                                                       
Earnings (loss) per average common share:

         Earnings (loss) before tax benefit
         and extraordinary gain                                         $     (0.04)                         (0.78)
         Benefit for income taxes                                       $       .41                          (0.78)
         Extraordinary gain, net of taxes                               $       .70                          (0.78)
         Net income                                                     $      1.07                          (0.78)

Average common and common equivalent
     shares outstanding                                                   1,448,427                        759,052(2)
----------
</TABLE>

     (2) Average common shares  outstanding  September 30, 1995,  reflects 1 for
200 reverse split effectuated October 31, 1995.

                               Page 5 of 14 Pages

<PAGE>

                  BLACK WARRIOR WIRELINE CORP. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
                                                                   Nine Months Ended
                                                           --------------------------------
                                                               September      September
                                                                  30,            30,
                                                                  1996           1995
                                                           --------------   ---------------
<S>                                                          <C>            <C>        
Net cash flows from operating activities:                    $   170,525    $   138,487
                                                           --------------   ---------------

Cash flows used in investing activities:
     Proceeds from the sale of fixed assets                       76,045         50,250
     Acquisition of property,
          plant and equipment                                   (737,456)      (303,556)
                                                           --------------   ---------------

     Net cash flow provided
          by investing activities                               (661,411)      (253,306)
                                                           --------------   ---------------
Cash flows provided by financing activities:

      Net advances on receivables
          financed                                                     0              0
                                                                                         
     Increase in notes payable                                   610,404        329,878
     Reductions in notes payable                                (241,190)      (163,894)
                                                           --------------   ---------------

      Net cash flow used in financing activities                 369,215        165,984

Net increase (decrease) in cash                                 (121,671)       (51,164)
Cash - beginning of period                                       284,825         40,453
                                                           --------------   ---------------

Cash - end of period                                         $   163,154    $    91,617
                                                           ==============   ===============


Supplemental disclosure of cash flow information:
          Interest paid                                      $    57,582    $    66,176
          Taxes paid                                         $         0    $         0

Supplemental schedule of noncash investing and financing:

         Subordinated debentures converted to common stock   $ 1,168,750

         Accrued interest forgiven                           $ 1,197,065

         Accrued penalties forgiven                          $   106,375

</TABLE>

                               Page 6 of 14 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, 1995 should be read in conjunction with this document.

2.       LONG-TERM DEBT
         --------------

         On November 30 1995, the Company  executed a  Reorganization  Agreement
         with the  holders of certain  debt of the  Company  whereby the Company
         exchanged  $656,250  of 13%  convertible  subordinated  debentures  and
         $644,168  of  notes  payable  to  affiliates  of the  Company  into  an
         aggregate  of 648,151  shares of common  stock and 98,438  common stock
         purchase warrants.  In September,  1996, the holders of an aggregate of
         $393,750 principal amount of the Company's  outstanding 13% convertible
         subordinated  debentures and $775,000 principal amount of the Company's
         outstanding 14% subordinated  debentures  exchanged such debentures for
         an aggregate of 689,375 shares of common stock and 179,062 common stock
         purchase  warrants.  All  of  such  debentures  had  been  in  default.
         Accordingly,  at September 30, 1996 an aggregate of $125,000  principal
         amount of the 14% subordinated debentures remained outstanding,  all of
         which were in default,  and an aggregate of $50,000 principal amount of
         the 13% subordinated debentures remained outstanding, all of which were
         in default.  Subsequent to September 30, 1996,  the remaining  $125,000
         principal  amount  of  the  14%  subordinated  debentures  and  $50,000
         principal amount of the 13% subordinated  debentures were exchanged for
         an aggregate of 96,250  shares of common stock and 26,250  common stock
         purchase warrants.  The holders of all the debentures exchanged forgave
         the payment of all interest and penalties  owing on such  indebtedness.
         The warrants are  exercisable for a period of five years at an exercise
         price of $2 per share.  The  holders of such  warrants  have the right,
         subject to  certain  limitations,  to have the  shares of common  stock
         issuable on exercise of such warrants included at the Company's expense
         in any registration statement filed by the Company under the Securities
         Act of 1993,  as amended.  The warrants are  redeemable  by the Company
         provided the bid price for the  Company's  common stock has exceeded $5
         per share on twenty consecutive  trading days ending on the trading day
         prior to the date on which the notice of redemption is given.

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 called "RABAD",

                               Page 7 of 14 Pages

<PAGE>



         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 the  prime  interest  rate  plus 2%. On
         December 20, 1995, RABAD accepted 148,565 shares of common stock of the
         Company  in  full  satisfaction  of  advances  totaling  $297,131.   In
         addition,  the Company  guaranteed that RABAD would be able to sell the
         common stock  received in the  transaction  for $2 per share within one
         year thereafter.  This agreement is  collateralized  by $100,000 of the
         Company's accounts receivable.

         The Company had an outstanding balance of $334,237 in notes payable and
         $8,976 in accrued  interest at December 31, 1994 owing to the President
         of the Company  and his spouse.  Interest  expense  recognized  on this
         indebtedness  for  1995,  1994,  and 1993  was  $28,611,  $31,491,  and
         $11,600,  respectively.  On December  20,  1995,  the  President of the
         Company and his spouse accepted  200,000 shares of the Company's common
         stock in full satisfaction of the outstanding  balance of notes payable
         and accrued interest.


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

Results of Operations

         After reflecting an extraordinary  gain on  extinguishment of debt, net
of taxes,  which  occurred  in the third  quarter of 1996,  the  Company had net
income of  $1,786,561  for the third quarter of 1996 as compared with a net loss
of  $180,152  for the  same  period  of 1995.  Also  after  reflecting  the same
extraordinary  gain,  during the first nine months of 1996,  the Company had net
income of  $1,551,310 as compared with a net loss of $588,968 for the first nine
months of 1995. The  improvement  in the net income is related  primarily to the
exchange  of  debentures  for  equity  and  the  resulting   recognition  of  an
extraordinary  gain, net of taxes,  of $1,014,758.  Enhanced  revenue levels and
improving  operating  margins by all divisions  also  contributed to the overall
improvement.

         Net revenues  increased by $578,527 to $2,053,346 for the third quarter
of 1996 compared with net revenues of $1,474,819 in the same period in 1995. Net
revenues for the first nine months of 1996  increased  $560,921 to $5,200,094 as
compared  to  $4,639,173  for the same period  last year.  Increased  completion
revenues were primarily the result of a large contract awarded to the Company by
a large  operator in the Black Warrior  Basin.  This contract will continue into
the forth  quarter of 1996.  Wireline  services  benefited  from a major project
initiated by an operator in the Permian Basin. The Company supplies all wireline
services  for this  project,  which is expected to continue  through the rest of
1996. A general  increase in demand for services from all customers,  as well as
improved  pricing,  was a  contributing  factor in the  improvement of revenues.
Revenues by division are summarized below:



                               Page 8 of 14 Pages

<PAGE>



<TABLE>
<CAPTION>

                                                    Nine Months Ended                        Three Months Ended
                                             ----------------------------------      ---------------------------------
                                                September          September           September         September
                                                 30,1996            30,1995              30,1996           30,1995
                                              ---------------   ---------------      -------------       ------------
<S>                                           <C>                <C>                   <C>                     
Wireline services
(logging, directional
services, perforating)                       $     3,681,558     $    3,473,888        $ 1,544,453       $ 1,104,774
Completion (workover 
services)                                    $     1,294,715     $    1,010,861        $   449,000       $   324,240
Tools and Packers
(sales and rentals of
bridge plugs)                                $       223,821     $      154,424        $    59,893       $    45,805
                                             ---------------     ---------------     ---------------     ------------
         Total                               $     5,200,094     $    4,639,173        $ 2,053,346       $ 1,474,819
                                             ===============     ===============     ==============      =============

                                             ===============     ===============     ==============      =============
</TABLE>


         Operating costs and expenses increased by $252,887 in the third quarter
of 1996 and by $293,045  in the first nine  months of 1996 as compared  with the
same periods in 1995.  This increase was due to increased costs for supplies and
materials  from  vendors,  attributable  to the  increase in revenues and in the
amount of materials and supplies  purchased for each  particular  job.  Salaries
increased  $101,838  for the first nine months of 1996 with the total  number of
employees  increasing to 98 at September 30, 1996 from 84 at September 30, 1995.
The  increase in  salaries  was the result of an effort by the Company to remain
competitive  and  retain  its  key  employees  as well  as the  increase  in the
activities of the completion workover services.

         Interest expense  decreased by $45,411 in the third quarter of 1996 and
$141,216 in the first nine months of 1996 as compared  with the same  periods in
1995.  Three to five year notes were used to purchase  new  vehicles  during the
last quarter of 1995 and the first nine months of 1996.  Net new  borrowing  for
the first nine months of 1996 totaled $610,404. Interest on the debt ranged from
prime  (8.75% as of  September  30,  1996) to 12.00%.  The  decrease in interest
expense is  directly  related to the  exchange  of an  aggregate  of  $1,300,418
principal  amount of  subordinated  debentures  and notes  payable to  Company's
related parties to equity during the last quarter of 1995.


Liquidity and Capital Resources

         Net cash flow provided from  operating  activities was $170,525 for the
nine months  ended  September  30, 1996 as compared  with  $138,487 for the nine
months ended September 30, 1995. Cash from operating  activities during the nine
months  ended  September  30,  1996 was  applied  primarily  to the  purchase of
property, plant and equipment and repayment of indebtedness.  Other uses of cash
consisted of

                               Page 9 of 14 Pages

<PAGE>



purchasing tools and supplies rather than purchasing them on credit.

On November 30 1995, the Company  executed a  Reorganization  Agreement with the
holders of certain debt of the Company whereby the Company exchanged $656,250 of
13%  convertible  subordinated  debentures  and  $644,168  of notes  payable  to
affiliates  of the Company into an  aggregate of 648,151  shares of common stock
and 98,438 common stock purchase warrants In September,  1996, the holders of an
aggregate  of  $393,750  principal  amount  of  the  Company's  outstanding  13%
convertible  subordinated  debentures  and  $775,000  principal  amount  of  the
Company's outstanding 14% subordinated  debentures exchanged such debentures for
an aggregate of 689,375 shares of common stock and 179,062 common stock purchase
warrants. All of such debentures had been in default.  Accordingly, at September
30, 1996 an  aggregate  of  $125,000  principal  amount of the 14%  subordinated
debentures remained outstanding,  all of which were in default, and an aggregate
of  $50,000  principal  amount  of  the  13%  subordinated  debentures  remained
outstanding, all of which were in default. Subsequent to September 30, 1996, the
remaining  $125,000  principal  amount of the 14%  subordinated  debentures  and
$50,000  principal amount of the 13% subordinated  debentures were exchanged for
an aggregate of 96,250 shares of common stock and 26,250  common stock  purchase
warrants. The holders of all the debentures exchanged and forgave the payment of
all  interest  and  penalties  owing  on such  indebtedness.  The  warrants  are
exercisable for a period of five years at an exercise price of $2 per share. The
holders of such warrants have the right, subject to certain limitations, to have
the shares of common stock issuable on exercise of such warrants included at the
Company's  expense in any registration  statement filed by the Company under the
Securities  Act of 1993, as amended.  The warrants are redeemable by the Company
provided the bid price for the Company's  common stock has exceeded $5 per share
on twenty  consecutive  trading days ending on the trading day prior to the date
on which the notice of redemption is given.

         On October 25, 1996 the Company  completed  the private  sale to twelve
investors of an aggregate of 600,000  shares of Common Stock and realized  gross
proceeds of $750,000.  Each of the investors  represented to the Company that he
or she was an  "accredited  investor"  as defined  under  Regulation D under the
Securities  Act of 1993,  as  amended  (the  "Act"),  that the  securities  were
purchased for his or her own account for  investment  and not with a view toward
resale or distribution and agreed that the certificate for the shares would bear
a legend  indicating  the  restriction  on the  further  transfer of such shares
without compliance with the Act. The Company paid $75,000 to the placement agent
in the  transaction  and  paid an  additional  $22,500  for the  non-accountable
expenses  of the  placement  agent.  The  Company  has agreed that the shares of
Common  Stock sold to such  persons  will be included  in the next  registration
statement  filed by the Company  under the Act unless the holder  elects to have
none or only a portion of his or her shares  included,  provided,  however,  the
Company  has no  obligation  to  include  the  securities  of any holder if such
holder, at the request of the managing underwriter of such offering,  refuses to
agree in writing that he or she will not offer or sell such  securities  for 180
days after the effective date of such registration statement.



                               Page 10 of 14 Pages

<PAGE>



PART II -- OTHER INFORMATION


Item 5. Other Information


On November 30 1995, the Company  executed a  Reorganization  Agreement with the
holders of certain debt of the Company whereby the Company converted $656,250 of
the 13%  convertible  subordinated  debentures  and $644,168 of notes payable to
affiliates  of the Company into an  aggregate of 648,151  shares of common stock
and common  stock  purchase  warrants.  In  September,  1996,  the holders of an
aggregate  of  $393,750  principal  amount  of  the  Company's  outstanding  13%
convertible  subordinated  debentures  and  $775,000  principal  amount  of  the
Company's outstanding 14% subordinated  debentures exchanged such debentures for
an aggregate of 689,375 shares of common stock and 179,062 common stock purchase
warrants. All of such debentures had been in default.  Accordingly, at September
30, 1996 an  aggregate  of  $125,000  principal  amount of the 14%  subordinated
debentures remained outstanding,  all of which were in default, and an aggregate
of  $50,000  principal  amount  of  the  13%  subordinated  debentures  remained
outstanding, all of which were in default. Subsequent to September 30, 1996, the
remaining  $125,000  principal  amount of the 14%  subordinated  debentures  and
$50,000  principal amount of the 13% subordinated  debentures were exchanged for
an aggregate of 96,250 shares of common stock and 26,250  common stock  purchase
warrants. The holders of all the debentures exchanged and forgave the payment of
all  interest  and  penalties  owing  on such  indebtedness.  The  warrants  are
exercisable for a period of five years at an exercise price of $2 per share. The
holders of such warrants have the right, subject to certain limitations, to have
the shares of common stock issuable on exercise of such warrants included at the
Company's  expense in any registration  statement filed by the Company under the
Securities  Act of 1993, as amended.  The warrants are redeemable by the Company
provided the bid price for the Company's  common stock has exceeded $5 per share
on twenty  consecutive  trading days ending on the trading day prior to the date
on which the notice of redemption is given.

         On October 25, 1996 the Company  completed  the private  sale to twelve
investors of an aggregate of 600,000  shares of Common Stock and realized  gross
proceeds of $750,000.  Each of the investors  represented to the Company that he
or she was an  "accredited  investor"  as defined  under  Regulation D under the
Securities  Act of 1993,  as  amended  (the  "Act"),  that the  securities  were
purchased for his or her own account for  investment  and not with a view toward
resale or distribution and agreed that the certificate for the shares would bear
a legend  indicating  the  restriction  on the  further  transfer of such shares
without compliance with the Act. The Company paid $75,000 to the placement agent
in the  transaction  and  paid an  additional  $22,500  for the  non-accountable
expenses  of the  placement  agent.  The  Company  has agreed that the shares of
Common  Stock sold to such  persons  will be included  in the next  registration
statement  filed by the Company  under the Act unless the holder  elects to have
none or only a portion of his or her shares  included,  provided,  however,  the
Company  has no  obligation  to  include  the  securities  of any holder if such
holder, at the request of the managing underwriter of such offering,  refuses to
agree in writing that he or she will not offer or sell

                               Page 11 of 14 Pages

<PAGE>



such  securities  for 180 days  after the  effective  date of such  registration
statement.


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 Current  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 12 of 14 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  12, 1996            /s/ William L. Jenkins
               ----                 ---------------------------
                                         William L. Jenkins
                                    President and Chief Operating Officer
                                        (Principal Executive, Financial
                                             and Accounting Officer)



                               Page 13 of 14 Pages