SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB
(Mark One)
 [  ]    Quarterly  Report  pursuant  to Section  13 or 15(d) of the  Securities
         Exchange Act of 1934 for the quarterly period ended March 31, 1997; 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)

         Check 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

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

        Class                                                Outstanding at
                                                              May 13, 1997
-----------------------                              ---------------------------
COMMON STOCK, PAR VALUE                                     2,185,216 SHARES
  $.0005 PER SHARE

                  Transitional Small Business Disclosure Format

                               YES           NO    X



<PAGE>



                          BLACK WARRIOR WIRELINE CORP.

                         QUARTERLY REPORT ON FORM 10-QSB

                                      INDEX

PART I -- FINANCIAL INFORMATION
                                                                        Page
                                                                     ----------


Item 1            Financial Statements

                  Consolidated Balance Sheets -- March 31, 1997
                  and December 31, 1996                                  3

                  Consolidated Statements of Operations --
                  Three Months Ended March 31, 1997 and
                  March 31,1996                                          4

                  Consolidated Statements of Cash Flows --
                  Three Months Ended March 31, 1997 and
                  March 31, 1996                                         5

                  Notes to Financial Statements --
                  Three Months Ended March 31, 1997 and
                  March 31, 1996                                         6

Item 2            Management's Discussion and Analysis of Financial
                  Condition and Results of Operations                    7

PART II -- OTHER INFORMATION

Item 6            Exhibits and Reports on Form 8-K                      10





                                        2

<PAGE>



PART I -- FINANCIAL INFORMATION
         ITEM 1.  FINANCIAL STATEMENTS
                  BLACK WARRIOR WIRELINE CORP. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                                                 MARCH 31      DECEMBER 31
                                                                                    1997           1996
                                     ASSETS
<S>                                                                            <C>            <C>        
Current Assets:
Cash and cash equivalents                                                      $   725,344    $   727,454
Accounts receivable, less allowance for
   doubtful accounts of $136,959 and $136,959
   at March 31, 1997 and December 31, 1996,
   respectively                                                                  1,159,735      1,369,306
Inventories                                                                        218,887        183,467
Prepaid expenses                                                                    64,680         53,424
Deferred tax asset                                                                 138,071        138,071
Federal income tax receivable                                                            0         14,636
Other receivables                                                                        0              0
                                                                               -----------    -----------
                  Total current assets                                           2,306,717      2,486,358

Land and Building, held for sale                                                   400,000        400,000
Property, plant & equipment, less accumulated
         depreciation of $3,855,110 and $3,729,370 at
         March 31, 1997 and December 31, 1996,
         respectively                                                            2,589,181      2,194,591
Goodwill, less amortization of $2,243 at March 31, 1997                            222,061        224,305
Other assets                                                                         5,420          5,420
                                                                               -----------    -----------
                  Total assets                                                 $ 5,523,379    $ 5,310,674
                                                                               ===========    ===========

                      LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
         Accounts payable                                                      $   934,213    $   808,832
         Accounts payable, related party                                             6,090         89,733
         Accrued salaries and vacation pay                                          56,956         25,085
         Income tax payable                                                            798         52,548
         Accrued interest payable                                                        0         29,530
         Other accrued expenses                                                    319,598        381,396
         Mortgage note payable, related party                                      150,000        150,000
         Notes payable to bank                                                      60,298         18,272
         Current maturities of long-term debt and
            Capital lease obligations                                              349,723        307,806
                                                                               -----------    -----------
                  Total current liabilities                                      1,877,676      1,863,202

         Deferred tax liability                                                    214,355        214,355
         Note payable to bank, less current maturities                              79,696         31,486
         Mortgage payable, related party                                           230,000        230,000
         Long-term debt and capital lease obligations,
         less current maturities                                                   829,959        713,873
                                                                               -----------    -----------
                  Total liabilities                                              3,231,686      3,052,916

Common stock, par value $.0005 per share,
         50,000,000 shares authorized, 2,185,216
         shares issued                                                               1,093          1,093
Additional paid-in capital                                                       5,133,087      5,133,087
Accumulated deficit                                                             (2,259,094)    (2,293,029)
Treasury stock, at cost, 814,626 shares                                           (583,393)      (583,393)
                                                                               -----------    -----------
         Total stockholders' equity                                              2,291,693      2,257,758
                                                                               -----------    -----------
         Total liabilities and stockholders' deficit                           $ 5,523,379    $ 5,310,674
                                                                               ===========    ===========
</TABLE>

                                        3

<PAGE>




                  BLACK WARRIOR WIRELINE CORP. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS

                                                         THREE MONTHS ENDED
                                                       MARCH 31,      MARCH 31,
                                                        1997           1996
                                                     ---------------------------

Net revenues                                         $ 2,165,018    $ 1,534,301

Operating costs and expenses                          (1,928,943)    (1,484,266)

Depreciation and amortization expense                   (196,027)      (143,511)


         Operating income (loss)                          40,048        (93,476)

Interest expense and amortization
         of debt discount and expense                    (39,759)      (101,307)

Other income                                              33,652          9,818


         Net income (loss) before provision
         for income taxes                                 33,941       (184,965)


Provision for income taxes                                     0              0



         Net income (loss)                           $    33,941    $  (184,965)
                                                     ===========    ===========


Earnings (loss) per average of common shares:
         Net income                                  $       .01    $      (.25)

Common and common equivalent
         shares outstanding                            2,185,216        759,052





                                        4

<PAGE>


                  BLACK WARRIOR WIRELINE CORP. AND SUBSIDIARIES
          CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE PERIODS ENDED:

<TABLE>
<CAPTION>

                                                           March 31, 1997        March 31, 1996
                                                           --------------        --------------
<S>                                                           <C>                  <C>       
Cash provided by operations                                   $ 325,969            $  30,105 
                                                                                             
                                                                                             
Cash flow from investing activities:                                                         
                                                                                             
         Acquisitions of plant, property, and                                                
           equipment                                           (252,573)            (250,441)
                                                                                             
         Proceeds from sale of plant, property,                                              
           and equipment                                         29,448                6,500 
                                                           ------------          -----------
                                                                                             
                                                                                             
         Cash used in investing activities                     (223,125)            (243,941)
                                                                                             
                                                                                             
Cash flow from financing activities:                                                         
                                                                                             
         Principal payments on debt                                                          
           and lease obligations and net                                                     
           change in notes payable                             (104,954)             123,437 
                                                           ------------          -----------
                                                                                             
                                                                                             
                                                                                             
         Cash (used in)provided by financing activities        (104,954)             123,437 
                                                                                             
                                                                                             
                           Net decrease in cash and cash                                     
                             equivalents                         (2,110)             (90,399)
                                                                                             
                                                                                             
Cash and cash equivalents, beginning of year                    727,454              284,825 
                                                                                             
                                                                                             
Cash and cash equivalents, end of year                        $ 725,344            $ 194,426 
                                                           ============          ===========
                                                                                             
                                                                                             
                                                                                             
Supplemental disclosure of cash flow information:                                            
                  Interest paid                               $  37,759            $  21,747 
                                                                                             
Supplemental schedule of noncash investing and financing:                                    
                                                                                             
Acquisition of plant, property and equipment financed under                                  
capital leases and notes payable                                353,192                      
                                                                                   

</TABLE>

                                        5

<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, 1996 should be read in conjunction with this document.

2.       RECENT DEBT RESTRUCTURING

         In November 1995, the Company executed  Reorganization  Agreements with
         the  holders  of  an  aggregate  of  $1,922,130   principal  amount  of
         outstanding   debentures  and   indebtedness   pursuant  to  which  the
         debentures  and  indebtedness  were  agreed  to  be  exchanged  for  an
         aggregate of 961,065 shares of the Company's Common Stock. In addition,
         pursuant to such  agreements,  Common  Stock  Purchase  Warrants of the
         Company were to be  exchanged  with the  debenture  holders for two new
         classes of Common Stock Purchase  Warrants.  Each class of new warrants
         was to represent  the right to purchase an aggregate of 183,750  shares
         of Common Stock.  The Class A warrants were to be  exercisable at $3.00
         per share for a period of four (4) years and the Class B warrants  were
         to be exercisable at prices  increasing in annual  increments  over the
         first three (3) years after  issuance from $3.00 per share to $5.00 per
         share and were to expire five (5) years after  issuance.  Through March
         31, 1996, an aggregate of $1,353,380 principal amount of debentures and
         indebtedness  was exchanged for 648,151  shares of Common Stock and the
         remaining  $568,750  of  debentures  to be  exchanged  pursuant  to the
         agreements  executed in November 1995 was subject to the fulfillment of
         certain closing conditions.  Issuance of the warrants was not completed
         in 1995.  In September  and October,  1996 the holders of an additional
         $800,000  principal  amount  of  Debentures   executed   Reorganization
         Agreements and the  Reorganization  Agreements entered into in November
         1995 were  amended so as to provide that in lieu of the issuance of the
         Class A warrants,  an aggregate of 101,250 shares of Common Stock would
         be  issued  and the  exercise  price of the Class B  warrants  would be
         reduced  to $2.00  per  share  throughout  the  five-year  term of such
         warrants.  During 1996, $1,368,750 principal amount of indebtedness was
         exchanged  for an  aggregate  of 712,914  shares of Common Stock and an
         aggregate  of 303,750  Class B warrants  were issued.  In addition,  an
         aggregate of 101,250 shares of Common Stock were issued in exchange for
         the Company's obligation to issue the Class A warrants. Pursuant to all
         such  agreements,  an aggregate of $2,071,357  of accrued  interest and
         penalties were waived by the debenture holders.

         In connection with the foregoing restructuring,  the Company effected a
         1-for-200 reverse stock split on October 30,1995.



                                        6

<PAGE>



ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OPERATIONS

INDUSTRY OVERVIEW AND ECONOMIC FACTORS IMPACTING COMPANY OPERATIONS


         The level of activity and  profitability  experienced by the Company is
         directly  related  to the  demand  for the  Company's  services  by the
         domestic oil and gas industry.  The market price of oil and natural gas
         is the principal  factor  driving this demand.  In recent years,  there
         have been some periods of relative  price  stability  but only isolated
         areas  of  real  growth.  In  1996,  however,   most  of  the  industry
         experienced  some  growth  in demand  and  pricing.  Management  of the
         Company  believes that the continuing  stability of domestic oil prices
         and relatively high gas prices should help continue this trend in 1997.

         Increased  demand for the  services  provided  by the  Company  and its
         competitors coupled with a general  consolidation in the service sector
         has reduced downward  pressure on pricing.  This has led to a reduction
         in "predatory"  pricing used by some companies to increase market share
         and helped improve overall  margins.  The Company believes that further
         improvements  in pricing will be seen in 1997 as this trend  continues.
         The Company plans to continue its marketing  policy which  stresses the
         safety, reliability, technological advantage and overall quality of its
         services.  Management  believes that an increasing  number of customers
         consider  these  factors  foremost in their  selection  criteria  for a
         service company.

         The Company  intends,  as and if  opportunities  arise, to aggressively
         seek to  expand  its  wireline  and other  service  areas  through  the
         acquisition  of  other  oil and gas  service  companies  that  meet its
         strategic  goals.  The Company will continue to re-deploy its assets to
         areas that are most beneficial to the long-term growth of the Company.

         On January  27,  1997 the  Company  entered  into a letter of intent to
         acquire the  outstanding  stock of Production  Well Services Co., which
         provides  wireline  services in southern  Mississippi  Slat Dome Basin.
         This  transaction is to be completed during the second quarter of 1997.
         In  addition,  the Company  entered into a letter of intent on April 1,
         1997 to acquire all of the outstanding stock of Petro-Log,  Inc., which
         provides wireline services in the state of Wyoming,  Montana, and South
         Dakota.  The letter of intent  provided that the  transaction  is to be
         completed  in the second  quarter  of 1997.  The  Company is  currently
         engaged in negotiations to raise the capital  necessary to pay the cash
         portion of the purchase price for these acquisitions. The completion of
         these acquisitions is subject to raising additional capital.

         The  Company is  actively  seeking to expand its  directional  drilling
         services by providing  downhole  steering tools in addition to hoisting
         services.  Directional  drilling  entails  entering a  production  zone
         horizontally,  using specialized drilling equipment,  which expands the
         area  of  interface  of  hydrocarbons  and  thereby  greatly  enhancing
         recoverability. This area of business is intended to enable the Company
         to enlarge its customer  base by providing  steering  services to other
         drilling  contractors  which  do not have "in  house"  steering  tools.
         Another area which the Company intends to expand is

                                        7

<PAGE>



         tubing conveyed  perforating.  The Company is providing this service in
         Alabama and Mississippi and plans to expand this service throughout its
         operational areas.

         The Company has purchased  state of the art downhole tools  including a
         segmented bond and magnetic and 40-arm casing  inspection  tools.  This
         acquisition  will  enable the Company to provide  services  unavailable
         from other smaller wireline company  competitors and thereby enable the
         Company to provide services in a less price competitive environment.


RESULTS OF  OPERATIONS  THREE  MONTHS ENDED MARCH 31, 1997  COMPARED  WITH THREE
MONTHS ENDED MARCH 31, 1996


         The Company  had a net income of $33,941 for the first  quarter of 1997
         as compared  with a net loss of  $184,965  for the same period of 1996.
         The net income of $33,941  can be  attributed  to  improved  margins on
         wireline and completion  services and an overall  increase in revenues.
         There was a reduction in interest  expense.  This reduction is a direct
         result of the debt to equity  conversion  completed in the last quarter
         of 1996.  The overall  improvement  was partially  reduced by increased
         depreciation expense,  amortization and income tax expense.  Management
         believes that revenues from it's Dyna Jet acquisition  will increase in
         the  second  quarter  of  1997  due  to the  seasonal  nature  of  this
         operation.

         Net revenues  increased by $630,717 to $2,165,018 for the first quarter
         of 1997  compared with net revenues of $1,534,301 in the same period in
         1996.  While  completion  services  and sales and  rentals of tools and
         packers  remained  fairly stable,  there was a substantial  increase in
         wireline services. A large portion of this increase stems from revenues
         in the Permian Basin.  The major project  initiated by a large customer
         that began in the third quarter of 1996 is expected to continue through
         1997.  The Company  supplies  all wireline  services for this  project.
         There is an  expected  increase  in demand  from most of the  Company's
         customers in the Permian  Basin  during 1997.  Revenues by division for
         the  quarters  ended March 31,  1997 and March 31, 1996 are  summarized
         below:



                                        8

<PAGE>

                                        THREE MONTHS ENDED

                              MARCH 31, 1997        MARCH 31, 1996
                                 ----------          ----------     
Wireline services
(logging, directional
services, perforating)           $1,675,522          $1,062,448 
                                                                
Completion (workover                                            
services)                        $  395,876          $  382,578 
                                                                
                                                                
Tools and Packers                $   93,620          $   89,275 
(sales and rentals of                                           
bridge plugs)                                                   
                                 ----------          ----------     
         Total                   $2,165,018          $1,534,301 
                                 ==========          ==========     


         Operating costs and expenses increased by $444,677 in the first quarter
         of 1997 as compared with the same period in 1996. 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. The Company experienced
         startup  costs in its  Wyoming  operation  during the first  quarter of
         1997.  Salaries  increased  $142,582 for the first three months of 1997
         with the total number of employees  increasing to 112 at March 31, 1997
         from 92 at March 31, 1996.  This  increase was due to salary raises for
         existing  employees and the addition of new personnel added to meet the
         increased work load.

         Interest  expense  decreased by $61,548 in the first quarter of 1997 as
         compared  with the same  period in 1996.  Three to five year notes were
         used to purchase  new  vehicles  and  equipment  during the first three
         months of 1997.  An aggregate of $104,954 of principal  amount at March
         31, 1997 went to reduce notes payable.  New note payables acquired this
         quarter totaled $353,192. Interest on the debt ranged from prime (9.50%
         as of April 25, 1997) to 12.00%.  The  decrease in interest  expense is
         directly  related to the exchange of  debentures  and notes  payable to
         Company's related parties to equity during the last quarter of 1995 and
         during the last quarter of 1996.


LIQUIDITY AND CAPITAL RESOURCES


         Cash provided by the Company's  operating  activities  was $325,969 for
         the three months ended March 31, 1997 as compared with $771,462 for the
         period ended  December 31, 1996.  Investing  activities  of the Company
         used cash of $252,573 during the period ended

                                        9

<PAGE>

         March 31, 1997 for the acquisitions of property,  plant , and equipment
         and another  business  offset by proceeds from the sale of fixed assets
         of $29,448. Financing activities used cash of $104,954 to pay principal
         payments of long-term notes and capital lease  obligations.  Other uses
         of  cash  consisted  of  purchasing  tools  and  supplies  rather  than
         purchasing them on credit.

         On January  27,  1997 the  Company  entered  into a letter of intent to
         acquire the  outstanding  stock of Production  Well Services Co., which
         provides  wireline  services in southern  Mississippi  Slat Dome Basin.
         This  transaction is to be completed during the second quarter of 1997.
         In  addition,  the Company  entered into a letter of intent on April 1,
         1997 to acquire all of the outstanding  stock o Petro-Log,  Inc., which
         provides wireline services in the state of Wyoming,  Montana, and South
         Dakota.  The letter of intent  provided that the  transaction  is to be
         completed  in the second  quarter  of 1997.  The  Company is  currently
         engaged in negotiations to raise the capital  necessary to pay the cash
         portion of the purchase price for these acquisitions. The completion of
         these acquisitions is subject to raising additional capital.

RECENTLY ISSUED ACCOUNTING STANDARDS

         In February  1997,  the  financial  Accounting  Standards  Board issued
         Statement of financial Accounting Standards No. 128, Earnings Per share
         (SFAS 128). SFAS 128 supersedes  existing generally accepted accounting
         principles  relative  to the  calculation  of  earnings  per share,  is
         effective  for  years  ending  after  December  15,  1997 and  requires
         restatement  of all prior period  earnings per share  information  upon
         adoption.  Generally, SFAS 128 requires a calculation of basic earnings
         per share,  which takes into  consideration  income (loss) available to
         common   shareholders   and  the  weighted  average  of  common  shares
         outstanding.  SFAS 128  also  requires  the  calculation  of a  diluted
         earnings  per  share,  which  takes  into  effect  the  impact  of  all
         additional  common  shares  that  would  have been  outstanding  if all
         dilutive  potential  common shares relating to options,  warrants,  and
         convertible  securities  had been  issued,  as long as their  effect of
         dilutive,  with a related  adjustment  of income  available  for common
         shareholders,  as appropriate.  SFAS 128 requires dual  presentation of
         basic and diluted  earnings  per share on the face of the  statement of
         operation   and  requires  a   reconciliation   of  the  numerator  and
         denominator  of the basic earnings per share  computation.  The company
         does not expect the effect of its adoption of SFAS 128 to be material.


PART II -- OTHER INFORMATION

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K


         (a)      Exhibits

                           27.  Financial Data Schedule

                                       10

<PAGE>



         (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.



                                       11

<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: May  13th, 1997                    /s/ William L. Jenkins
                                         ---------------------------------------
                                         William L. Jenkins
                                         President and Chief Operating Officer
                                         (Principal Executive, Financial and
                                         Accounting Officer)




                                       12