DAWSON GEOPHYSICAL CO
REVOLVING LINE OF CREDIT LOAN AGREEMENT
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<DESCRIPTION>REVOLVING LINE OF CREDIT LOAN AGREEMENT
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<P align="right" style="font-size: 10pt">Exhibit&nbsp;10.1



<P align="center" style="font-size: 10pt"><B>WESTERN NATIONAL BANK<BR>
508 WEST WALL STREET, SUITE 1100<BR>
MIDLAND, TEXAS<BR>
79701</B>



<P align="center" style="font-size: 10pt">December&nbsp;22, 2004



<P align="left" style="font-size: 10pt">Dawson Geophysical Company<BR>
508 W. Wall Street, Ste. 800<BR>
Midland, Texas 79701

<DIV align="left">
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    <TD width="53%">&nbsp;</TD>
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<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>RE:</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Revolving Line of Credit Loan from Western National Bank to
Dawson Geophysical Company</TD>
</TR>

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<P align="left" style="font-size: 10pt">Gentlemen:



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Western National Bank (&#147;<B>Western</B>&#148; or the &#147;<B>Bank</B>&#148;) hereby commits to provide
to Dawson Geophysical Company (alternatively &#147;<B>Dawson Geophysical</B>&#148; or the
"<B>Borrower</B>&#148;) a revolving line of credit loan in the amount of TEN MILLION AND
NO/DOLLARS ($10,000,000.00) (the <B>Loan</B>&#148;). The Loan will be evidenced by a
Revolving Line of Credit Note, of even date herewith, in the original face
amount of TEN MILLION AND NO/Dollars ($10,000,000.00) (the &#147;<B>Note</B>&#148;) and secured
by that certain Security Agreement, dated December&nbsp;22, 2004 covering those
accounts receivables described therein (the &#147;<B>Security Agreement</B>&#148;). From time to
time, the Security Agreement, and any financing statements filed to perfect the
security interest created thereunder, may be collectively referred to herein as
the &#147;<B>Security Instruments</B>&#148;.

<P align="left" style="font-size: 10pt">Western hereby agrees to advance grants the Loan to Borrower, subject to
the following terms and conditions:


<P align="left" style="font-size: 10pt"><B>I. TERMS</B>


<P align="left" style="font-size: 10pt"><B>Agreement</B>


<P align="left" style="font-size: 10pt">This letter agreement, dated as of December&nbsp;22, 2004, (the &#147;<B>Agreement</B>&#148;) and any
extensions, renewals, or modifications hereof.


<P align="left" style="font-size: 10pt"><B>Borrower</B>


<P align="left" style="font-size: 10pt">Dawson Geophysical Company



<P align="center" style="font-size: 10pt">1
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<P align="left" style="font-size: 10pt"><B>Bank</B>


<P align="left" style="font-size: 10pt">Western National Bank


<P align="left" style="font-size: 10pt"><B>Commitment</B>


<P align="left" style="font-size: 10pt">The lesser of the following amounts: (a)&nbsp;the face amount of the Note; or (b)
the Borrowing Base then in effect.


<P align="left" style="font-size: 10pt"><B>Rate</B>


<P align="left" style="font-size: 10pt">Interest under the Note shall accrue at an annual rate equal to the Prime Rate
but in no event to be
less than five percent (5.0%). For purposes of this Agreement, the <B>&#147;Prime
Rate&#148; </B>shall be defined as that rate established as the prime rate in the money
rate table of <I>The Wall Street Journal</I>, a Dow Jones publication, as of each
Business Day, as hereinafter defined, (and for holidays or weekends, the Prime
Rate shall be the prime rate published in that money rate table of <I>The Wall
Street Journal, </I>as of the close of business on the most recent Business Day
immediately preceding such weekend or holiday). Without notice to the Borrower
or any other person, the Prime Rate may change from time to time pursuant to
the preceding sentence, with the effective date of each change to be the
effective date reflected in the money rate table of <I>The Wall Street Journal</I>.
The Prime Rate is a reference rate and does not necessarily represent the
lowest or best rate actually charged to any customer. The Bank may make
commercial loans or other loans at rates of interest at, above, or below the
Prime Rate. <B>&#147;Business Day&#148; </B>shall mean any day other than a Saturday, Sunday or
legal holiday for commercial banks under the laws of the State of Texas.


<P align="left" style="font-size: 10pt"><B>Security</B>


<P align="left" style="font-size: 10pt">The Loan shall be secured by the Security Instrument.


<P align="left" style="font-size: 10pt"><B>Structure</B>


<P align="left" style="font-size: 10pt">Under the Revolver Note, funds will be available on a revolving basis through
December&nbsp;22, 2005, the maturity date of the Revolver Loan (the &#147;<B>Revolving
Period</B>&#148;). During the Revolving Period, the Borrower may borrow, repay, and
reborrow funds as long as the aggregate amount (including outstanding letters
of credit) does not exceed the Commitment.


<P align="left" style="font-size: 10pt"><B>Borrowing Base</B>


<P align="left" style="font-size: 10pt">At any time, and from time to time, the amounts outstanding under the Revolver
Note shall not exceed the lesser of: (a)&nbsp;the face amount of the Revolver Note;
or (b)&nbsp;the Borrowing Base, as determined from time to time by the Bank, acting
in its sole and unlimited discretion (said lesser amount being referred to
herein as the &#147;<B>Revolver Commitment</B>&#148;). As used in this Agreement,

<P align="center" style="font-size: 10pt">2
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<P align="left" style="font-size: 10pt">the term &#147;<B>Borrowing Base</B>&#148; shall mean an amount equal to seventy-five percent
(75%) of the Borrower&#146;s Eligible Accounts.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the purposes of this Agreement, the term &#147;<B>Eligible Account</B>&#148; shall mean
an account receivable of any of the Borrower (net of any credit balance, trade
discount, or unbilled amount or retention) that is contractually due, for which
each of the following statements is accurate and complete (and the Borrower, by
including such account receivable in any computation of the Borrowing Base
shall be deemed to represent and warrant to the Bank the accuracy and
completeness of such statements):


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" nowrap align="right"><B>a.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Said account receivable is a binding and valid
obligation of the obligor thereon, in full force and effect,
and enforceable in accordance with its terms;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" nowrap align="right"><B>b.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Said account receivable is genuine, in all
respects, as appearing on its face as represented in the books
and records of Borrower, and all information set forth therein
is true and correct;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" nowrap align="right"><B>c.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Said account receivable is free of all default of
any party thereto, counterclaims, offsets, and defenses, and
from any rescission, cancellation, or avoidance, and all right
thereof, whether by operation of law or otherwise;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" nowrap align="right"><B>d.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The payment of said account receivable is not
more than ninety (90)&nbsp;days past due the invoice date thereof;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" nowrap align="right"><B>e.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Said account receivable is free of concessions or
understandings with the obligor thereon of any kind not
disclosed to and approved by the Bank in writing;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" nowrap align="right"><B>f.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Said account receivable is, and at all times will
be, free and clear of all liens except those in favor of the
Bank;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" nowrap align="right"><B>g.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Said account receivable is not a receivable
arising from intercompany indebtedness existing between or
among any of the Borrower;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" nowrap align="right"><B>h.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Said account receivable is derived from sales
made or services rendered to the obligor in the ordinary
course of the business of the Borrower;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" nowrap align="right"><B>i.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The obligor on said account receivable (i)&nbsp;is
located within the United States or the District of Columbia;
(ii)&nbsp;is not the subject of any bankruptcy or insolvency
proceeding, nor has a trustee or receiver been appointed for
all or a substantial part of its property, nor has said
obligor made an assignment for the benefit of creditors,
admitted its inability to pay its debts as they mature or
suspended its business, (iii)&nbsp;is not affiliated, </TD>
</TR>

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<P align="center" style="font-size: 10pt">3
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<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="4%" nowrap align="right">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>directly or indirectly, with Borrower, as a subsidiary or affiliate,
employee or otherwise; and (iv)&nbsp;is not a state or federal
government department, commission, board, bureau, or agency;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" nowrap align="right"><B>j.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Said account receivable did not arise from a
single customer whose accounts receivable to Borrower
constitute more than twenty-five percent (25%) of Borrower&#146;s
accounts receivable;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" nowrap align="right"><B>k.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Said account receivable is not owed by a customer
whose principal place of business is located in a foreign
country; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" nowrap align="right"><B>l.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Said account receivable did not arise from sales
to an obligor as to whom fifteen percent (15%) or more of the
total accounts receivable owing by such obligor to the
Borrower are delinquent accounts receivable (that is, an
account that is more than ninety (90)&nbsp;days delinquent).</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">The Borrower may request in writing an increase in the Borrowing Base, such
request to be accompanied by a description and evaluation of any additional
collateral to be provided by the Bank. The Bank may evaluate such for an
increase in its sole and absolute discretion, and in conjunction with such
evaluation, may conduct a full credit analysis of the Borrower and the existing
or additional collateral.


<P align="left" style="font-size: 10pt">If the aggregate amounts outstanding under the Note exceeds the Revolver
Commitment at any time, the Bank will provide written notice of that event to
Borrower. On or before the tenth (10th) day following receipt of such
notification by Borrower, Borrower will either, at the direction of the Bank,
acting in its sole and absolute discretion: (a)&nbsp;make a mandatory payment to the
Bank of the principal of the Note in an amount at least equal to the amount
necessary to cause the outstanding principal balance of the Note to be less
than or equal to the Revolver Commitment; or (b)&nbsp;create liens on other assets
of Borrower, satisfactory in nature, quantity, and value to the Bank, acting in
its sole discretion, said assets to have a fair market value sufficient to at
least equal to the amount necessary to cause the outstanding principal balance
of the Note to be less than or equal to the Revolver Commitment.


<P align="left" style="font-size: 10pt"><B>Purpose</B>


<P align="left" style="font-size: 10pt">Funds from the Loan shall be to provide working capital to offset the increase
in receivables due to the significant growth in Borrower&#146;s business. No
proceeds from the Loan shall be used for the purpose of purchasing or carrying
margin stock in violation of Regulations G, U, or X of the Board of Governors
of the Federal Reserve System.


<P align="left" style="font-size: 10pt"><B>Maturity Date</B>


<P align="left" style="font-size: 10pt">As stated, the maturity date of the Note is December&nbsp;22, 2005.




<P align="center" style="font-size: 10pt">4
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<P align="left" style="font-size: 10pt"><B>II. REPRESENTATIONS AND WARRANTIES</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>A.&nbsp;Good Standing and Identity</B>. The Borrower is a corporation, duly
organized and in good standing under the laws of Texas. The Borrower&#146;s legal
name is that reflected in the address of this Agreement. Borrower has the
power to own its property and to carry on its business in each jurisdiction in
which the Borrower operates.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>B.&nbsp;Authority and Compliance</B>. The Borrower has full power and authority to
enter into this Agreement, to make the borrowing hereunder, to execute and
deliver the Note, to mortgage those interests covered by the Security
Instruments, and to incur the obligations provided for herein, all of which
will be duly authorized by all proper and necessary corporate action. No
consent or approval of any public authority is required as a condition to the
validity of this Agreement, the Note, and the Security Instrument, and Borrower
is in compliance with all laws and regulatory requirements to which he is
subject.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>C.&nbsp;Litigation. </B>There are no proceedings pending or, to the knowledge of
Borrower, threatened before any court or administrative agency that will or may
have a material adverse effect on the financial condition or operations of
Borrower, except as disclosed to the Bank in writing prior to the date of this
Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>D.&nbsp;Ownership of Assets. </B>As of the date of this Agreement, Borrower has
good title to the interests covered by the Security Instruments and any other
collateral pledged and the other collateral is owned free and clear of liens.
Borrower will at all times maintain its tangible property, real and personal,
in good order and repair, taking into consideration reasonable wear and tear.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>E.&nbsp;Taxes. </B>All income taxes and other taxes due and payable through the
date of this Agreement have been paid prior to becoming delinquent.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>F.&nbsp;Financial Statements. </B>The books and records of the Borrower properly
reflect the financial condition of the Borrower in all material respects, and
there has been no material change in Borrower&#146;s financial condition as
represented in its most recent financial statements.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>G.&nbsp;Hazardous Wastes and Substances</B>. To the best knowledge of the
Borrower, the Borrower and its properties are in compliance with applicable
state and federal environmental laws and regulations and the Borrower is not
aware of and has not received any notice of any violation of any applicable
state or federal environmental law or regulation and there has not heretofore
been filed any complaint, nor commenced any administrative procedure, against
the Borrower or any of its predecessors, alleging a violation of any
environmental law or regulation. Currently and from time to time, the
Borrower, in the course of its regular business, may use or generate on a
portion of its properties materials which are Hazardous Materials, as
hereinafter defined. The Borrower has and will make a good faith attempt to
comply with all applicable statutes and regulations in the use, generation and
disposal of such materials. To the best of its knowledge, the Borrower has
not otherwise installed, used, generated, stored or disposed of any hazardous
waste, toxic substance, asbestos or related material (&#147;<B>Hazardous Materials</B>&#148;) on
its properties. For the purposes of this Agreement, Hazardous Materials shall
include, but shall not be limited to, substances defined as &#147;hazardous
substances&#148; or &#147;toxic substances&#148; in the


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<P align="left" style="font-size: 10pt">Comprehensive Environmental Response Compensation and Liability Act of 1980, as
amended, 42 U.S.C. &#167;9061, et seq., Hazardous Materials Transportation Act, 49
U.S.C. &#167;1802, et seq., and the Resource Conservation and Recovery Act, 42
U.S.C. &#167;6901, et seq., or as &#147;hazardous substances,&#148; &#147;hazardous waste&#148; or
&#147;pollutant or contaminant&#148; in any other applicable federal, state or local
environmental law or regulation. There do not exist upon any property owned by
Borrower any underground storage tanks or facilities, and to the knowledge of
Borrower, none of such property has ever been used for the treatment, storage,
recycling, or disposal of any Hazardous Materials.


<P align="left" style="font-size: 10pt"><B>III. CONDITIONS PRECEDENT</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The provisions of this Agreement will serve as the proposed terms of the
borrowing arrangements. Prior to any funds being made available, Borrower will
execute and deliver to the Bank, in form and substance satisfactory to the
Bank, this Agreement, the Note, and the Security Instruments.


<P align="left" style="font-size: 10pt"><B>IV. COVENANTS</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless the Bank will otherwise consent in writing, and so long as any debt
remains outstanding or the commitment still available, the Borrower agrees to
comply with the following covenants:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>A.&nbsp;Affirmative Covenants.</B>



<P align="left" style="margin-left:2%; font-size: 10pt"><B>1. </B>As soon as available, but in any event not later than ninety (90)&nbsp;days
after the end of each fiscal year, Borrower will provide financial
statements, covering Borrower as of the end of such year and the related
statements of income and changes in cash flows for such year, with the
first year ending on September&nbsp;30, 2004, such statements to be audited by
an independent certified accountant and to be prepared according to
generally accepted accounting principals, consistently applied (&#147;<B>GAAP</B>&#148;).



<P align="left" style="margin-left:2%; font-size: 10pt"><B>2. </B>Within ninety (90)&nbsp;days of the end of each calendar quarter, with the
first quarter ending on December&nbsp;31, 2004, the Borrower will submit to
the Bank a financial statement reflecting Borrower&#146;s financial
performance during the previous calendar quarter, such statements to be
reviewed by an independent certified accountant and to be prepared
according to GAAP.



<P align="left" style="margin-left:2%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;<B>3. </B>Within thirty (30)&nbsp;days of the end of each calendar month,
Borrower shall provide internally prepared financial statements
reflecting Borrower&#146;s financial performance during the previous month,
such statements to be prepared according GAAP.



<P align="left" style="margin-left:2%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;<B>4. </B>Within thirty (30)&nbsp;days of the end of each calendar month,
Borrower shall provide monthly accounts receivable aging reports.


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<P align="left" style="margin-left:2%; font-size: 10pt"><B>5. </B>Within thirty (30)&nbsp;days of transmitting any tax return to any
governmental authority, the Borrower will submit to the Bank a copy of
that tax return.



<P align="left" style="margin-left:2%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;<B>6. </B>Within thirty (30)&nbsp;days following the end of each calendar month,
Borrower shall provide a monthly borrowing base report and compliance
certificate.



<P align="left" style="margin-left:2%; font-size: 10pt"><B>7. </B>Borrower shall maintain an average Cash Flow Coverage Ratio of not
less than 1.50 to 1.0, calculated monthly, beginning on <B>January&nbsp;31, 2005</B>,
from the date of the Loan to maturity. For purposes of this Agreement,
&#147;Cash Flow Coverage Ratio&#148; means, with respect to any period of
calculation thereof, the ratio of the sum of (i)&nbsp;the net income (or loss)
from continuing operations of Borrower during such period calculated
after any and all distributions to shareholders, plus (ii)&nbsp;interest,
depreciation, depletion, and amortization expenses of Borrower during
such period, less (iii)&nbsp;gains from the sale of any assets; plus (iv)
losses from the sale of any assets; less (v)&nbsp;extraordinary adjustments to
net income divided by (vi)&nbsp;scheduled capital lease obligations and
Principal and Interest payments, all determined in accordance with GAAP.



<P align="left" style="margin-left:2%; font-size: 10pt"><B>8. </B>Borrow shall maintain a Current Ratio of not less than 1.50 to 1.0,
measured monthly, beginning on <B>January&nbsp;31, 2005</B>, from the date of the
Loan to maturity. For purposes of this Agreement, &#147;Current Ratio&#148; means,
with respect ot any period of calculation thereof, the ratio of the sum
of (i)&nbsp;current assets, plus (ii)&nbsp;availability under the Revolver Loan,
divided by (iii)&nbsp;current liabilities. Current assets shall include a
minimum balance of cash plus marketable securities of not less than
$3,500,000.00.



<P align="left" style="margin-left:2%; font-size: 10pt"><B>9. </B>Borrower shall submit copies of all financial statements, reports
notices and proxy statements sent or made available generally by the
Borrower to its shareholders, of all regular and periodic reports and all
private placement memorandums and all registration statements and
prospectuses, if any, filed by the Borrower with any securities exchange
or with the Security Exchange Commission; and all press releases and
other statements made available generally by the Borrower to the public
concerning material changes in the business of the Borrower upon their
becoming available, but in no event later than 10&nbsp;days after the same
sent.



<P align="left" style="margin-left:2%; font-size: 10pt"><B>10. </B>Borrower shall maintain a minimum Tangible Net Worth of
$40,000,000.00, to be measured monthly. &#147;Tangible Net Worth&#148; means the
excess, if any, of the total assets of any person over all items of
indebtedness, obligations, or liability which would be classified as
liabilities of that person, for the time period to be measured, each to
be determined in accordance with Tax Basis; provided, however, that for
the purposes of any such computation of Tangible Net Worth, &#147;assets&#148; will
not include (a)&nbsp;goodwill (whether representing the excess of cost over
book value of assets acquired or otherwise), and (b)&nbsp;patents, trademarks,
trade names, copyrights, franchises, and deferred charges.



<P align="left" style="margin-left:2%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;<B>11. </B>For any time period for which reporting is required, Borrower
will maintain a Debt to Tangible Net Worth ratio of at least 1.50 to
1.00. For purposes of this paragraph, &#147;Debt&#148; means as to any person, all
liabilities, obligations, and indebtedness to


<P align="center" style="font-size: 10pt">7
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<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="margin-left:2%; font-size: 10pt">any person, of any kind or nature, now or hereafter owing, arising, due
or payable, howsoever evidenced, created, incurred, acquired or owing,
whether primary, secondary, direct, contingent, fixed, or otherwise, and
&#147;Tangible Net Worth&#148; is defined in paragraph 10 above.



<P align="left" style="margin-left:2%; font-size: 10pt"><B>12. </B>The Borrower will maintain its existence in good standing and
comply with all laws, regulations and governmental requirements
applicable to it or to any of its property, business operations and
transactions.



<P align="left" style="margin-left:2%; font-size: 10pt"><B>13. </B>The Borrower will promptly pay any reasonable costs incurred by
the Bank in connection with the preparation or enforcement of this
Agreement, the Notes, the Security Instruments, and any other
documentation executed concurrently herewith.



<P align="left" style="margin-left:2%; font-size: 10pt"><B>14. </B>The Borrower will remain in substantial compliance with same and
will not place or permit to be placed any Hazardous Materials on any of
its properties in violation of applicable state and federal environmental
laws. In the event that the Borrower should discover any Hazardous
Materials on any of its properties that could result in a breach of the
foregoing covenant, the Borrower shall notify the Bank within three (3)
days after such discovery. The Borrower shall dispose of all material
amounts of Hazardous Materials that it generates only at facilities or
with carriers that maintain valid governmental permits under the Resource
Conservation and Recovery Act, 42 U.S.C. &#167;6901. In the event of any
notice or filing of any procedure against the Borrower alleging a
violation of any environmental law or regulation, the Borrower shall give
notice to the Bank within five (5)&nbsp;days after receiving notice of such
notice or filing.



<P align="left" style="margin-left:2%; font-size: 10pt"><B>15. </B>The Borrower will provide such other information as the Bank may
reasonably request from time to time in its sole discretion.


<P align="left" style="margin-left:2%; font-size: 10pt"><B>B. Negative Covenants.</B>




<P align="left" style="margin-left:2%; font-size: 10pt"><B>1. </B>The Borrower will not m ake any change in its present accounting
method or change its present fiscal year.



<P align="left" style="margin-left:2%; font-size: 10pt"><B>2. </B>The Borrower will not m ake any substantial change in the nature
of its business as now conducted.



<P align="left" style="margin-left:2%; font-size: 10pt"><B>3. </B>The Borrower will not reorganize or merge with any other entity,
without the prior written consent of the Bank.



<P align="left" style="margin-left:2%; font-size: 10pt"><B>4. </B>With respect to the Borrower&#146;s interest in any of the properties
covered by the Security Instrument, the Borrower will not sell, contract
to sell, convey, assign, transfer, mortgage, pledge, hypothecate,
encumber, or in any way alienate that interest in such properties,
without the consent of the Bank.


<P align="center" style="font-size: 10pt">8
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<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="margin-left:2%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>5. </B>Borrower shall not pay any dividends or distributions to
shareholders with the exception of those used to pay income tax
liabilities incurred in connection with the Borrower&#146;s business.


<P align="left" style="font-size: 10pt"><B>V. EVENTS OF DEFAULT</B>




<P align="left" style="margin-left:2%; font-size: 10pt">&nbsp;&nbsp;The occurrence and continuing existence of any one of the following will
constitute an Event of Default under this Agreement and the Note:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>A.&nbsp;</B>Borrower fails to pay when due any principal, interest, or other amount
payable under this Agreement, the Note, or any other promissory notes executed
or guaranteed by the Borrower in favor of the Bank;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>B.&nbsp;</B>Any representation or warranty made by the Borrower hereunder or in any
related collateral security or other documents entered into with the Bank
proves to be at any time incorrect in any significant respect;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>C.&nbsp;</B>The Borrower fails to observe or perform any covenant, obligation,
agreement, or other provision contained herein or in any other contract or
instrument executed in connection herewith;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>D.&nbsp;</B>Any default or defined Event of Default under any security agreement,
deed of trust, promissory note, loan agreement or other contract or instrument
executed by the Borrower pursuant to, or as required by, this Agreement;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>E.&nbsp;</B>Any final judgment or judgments for the payment of money is rendered
against Borrower and is not be satisfied or discharged at least thirty (30)
days prior to the date on which any of their assets could be lawfully sold to
satisfy such judgment or judgments, unless Borrower brings litigation to stay
same; or


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>F.&nbsp;</B>Borrower: (a)&nbsp;becomes insolvent, or suffers or consents to, or applies
for the appointment of a receiver, trustee, custodian or liquidator for himself
or any of his property, or generally fails to pay his debts as they become due,
or makes a general assignment for the benefit of creditors; or (b)&nbsp;files a
voluntary petition in bankruptcy, or seeking reorganization, in order to effect
a plan or other arrangement with creditors or any other relief under the
Bankruptcy Reform Act, Title 11 of the United States Code, as recodified from
time to time (&#147;<B>Bankruptcy Code</B>&#148;), or as now or hereafter in effect, or any
involuntary petition or proceeding pursuant to said Bankruptcy Code or any
other applicable state or federal law relating to bankruptcy or reorganization
or other relief for debtors is filed or commenced against Borrower; or (c)
files any answer admitting the jurisdiction of the court and the material
allegations of any such involuntary petition; or (d)&nbsp;is adjudicated a bankrupt,
under said Bankruptcy Code or any other state or federal law relating to
bankruptcy, reorganization, or other relief for debtors.


<P align="center" style="font-size: 10pt">9
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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt"><B>VI. REMEDIES</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If any Event of Default occurs, any term hereof or of the Note to the
contrary notwithstanding, the Note shall at the Bank&#146;s option become
immediately due and payable. In addition, the obligation, if any, of the Bank
to permit further borrowings hereunder will immediately cease and terminate and
the Bank will have all rights, powers, and remedies available under this
Agreement, the Note, or other contracts or instruments executed in connection
herewith, or accorded by law, including, without limitation, the right to
resort to any or all of the collateral and to exercise any or all of its
rights, powers, or remedies at any time and from time to time after the
occurrence of an Event of Default.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>ONCE AN EVENT OF DEFAULT HAS OCCURRED, WESTERN MAY PURSUE THE REMEDIES
PROVIDED FOR IN THIS AGREEMENT, THE NOTE, AND THE SECURITY INSTRUMENTS WITHOUT
PRESENTMENT, DEMAND, PROTEST, NOTICE OF ACCELERATION, NOTICE OF INTENT TO
ACCELERATE, NOTICE OF PROTEST OR NOTICE OF DISHONOR, OR ANY OTHER NOTICE OF ANY
KIND, ALL OF WHICH ARE EXPRESSLY WAIVED BY BORROWER.</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All rights, powers, and remedies of the Bank in connection with this
Agreement, the promissory notes or any other contract or instrument on which
the Borrower may at any time be obligated to the Bank (or any holder thereof)
are cumulative and not exclusive and will be in addition to any other rights,
powers, or remedies provided by law or equity, including without limitation the
right to set off any liability owing by the Bank to the Borrower (including
sums deposited in any deposit account of Borrower with the Bank) against any
liability of the Borrower to the Bank.


<P align="left" style="font-size: 10pt"><B>VII. WAIVER</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No delay, failure, or discontinuation by the Bank, or any holder of the
Note, in exercising any right, power, or remedy under this Agreement, the Note
or any other contract or instrument on which the Borrower may at any time be
obligated to the Bank (or any holder thereof) will affect or operate as waiver
of such right, power or remedy. Any waiver, permit, consent, or approval of
any kind by the Bank (or any holder of the Note), or of any provisions or
conditions of, or any breach or default under this Agreement, the Note or any
other contract or instrument on which the Borrower may at any time be
obligated, must be in writing and will be effective only to the extent set
forth in such writing.


<P align="center" style="font-size: 10pt">10
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt"><B>VIII. NOTICES</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All notices, requests, and demands given to or made upon the respective
parties must be in writing and shall be deemed to have been given or made: (1)
at the time of personal delivery thereof, (2)&nbsp;or two days after any of the same
are deposited in the U.S. Mail, first class and postage prepaid, addressed as
follows:

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="80%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Borrower:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Dawson Geophysical Company</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">508 West Wall Street, Suite&nbsp;800</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Midland, Texas 79701</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Western:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Western National Bank</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attention: James R. Kreuz</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">508 West Wall Street, Suite&nbsp;1100</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Midland, Texas 79701</TD>
</TR>

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</TABLE>
</DIV>


<P align="left" style="font-size: 10pt">or other such address as any party may designate by written notice to all other
parties.



<P align="left" style="font-size: 10pt"><B>IX. SUCCESSORS, ASSIGNMENTS</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Agreement will be binding on and inure to the benefit of the heirs,
executors, administrators, legal representatives, successors, and assigns of
the parties, provided, however, that this Agreement may not be assigned by the
Borrower without the prior written consent of the Bank. The Bank reserves the
right to sell, assign, transfer, negotiate, or grant participations in all or
any part of, or any interest in, the Bank&#146;s rights and benefits under this
Agreement, the Note or any contracts or instruments relating thereto. In
connection therewith, the Bank may disclose all documents and information which
the Bank now has or may hereafter acquire relating to the loan or the Note, the
Borrower or his business, or any collateral required hereunder.


<P align="left" style="font-size: 10pt"><B>X. SEVERABILITY OF PROVISIONS</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If any of the provisions of this Agreement shall be prohibited by or
invalid under applicable law, such provision shall be ineffective only to the
extent of such prohibition or invalidity without invalidating the remainder of
such provision or any remaining provisions of this Agreement.


<P align="left" style="font-size: 10pt"><B>XI. VENUE AND JURISDICTION</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any suit, action or proceeding against the Borrower arising out of or
relating to this Agreement or any judgment entered by any court in respect
thereof, may be brought or enforced in the courts of the State of Texas, County
of Midland, or in the United States District Court for the Western District of
Texas, as Western in its sole discretion may elect, and Borrower hereby submits
to the nonexclusive jurisdiction of such courts for the purpose of any such
suit, action or proceeding. The Borrower hereby irrevocably consents to
service of process in any suit, action or proceeding in any of said courts by
the mailing thereof by the Bank by registered or certified mail, postage
prepaid, to the Borrower, at the address set forth herein.


<P align="center" style="font-size: 10pt">11
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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>THE BORROWER HEREBY IRREVOCABLY WAIVES ANY OBJECTIONS THAT HE MAY NOW OR
HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUIT, ACTION OR PROCEEDING ARISING
OUT OF OR RELATING TO THIS AGREEMENT BROUGHT IN ANY OF SAID COURTS AND HEREBY
FURTHER IRREVOCABLY WAIVES ANY CLAIM THAT ANY SUCH SUIT, ACTION OR PROCEEDING
BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM AND ANY
RIGHT GRANTED BY STATUTE, RULE OR COURT OR OTHERWISE TO HAVE SUCH SUIT, ACTION
OR PROCEEDING TRIED BY A JURY.</B>


<P align="left" style="font-size: 10pt"><B>XII. MISCELLANEOUS</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>A.&nbsp;Texas Law Applicable</B>. This Agreement, the Note, the Security
Instruments, and any contracts or instruments relating thereto, shall be
governed by and construed in accordance with the laws of the State of Texas,
except to the extent that the Bank has greater rights or remedies under federal
law or the law of any jurisdiction in which the collateral properties are
located, in which case such choice of Texas law shall not be deemed to deprive
the Bank of such rights and remedies under federal law or the law of any
jurisdiction in which the collateral properties are located, in which case such
choice of Texas law shall not be deemed to deprive the Bank of such rights and
remedies as may be available under such law.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>B.&nbsp;Notice of Final Agreement</B>. <B>THIS AGREEMENT, THE NOTE, ANY CONTRACTS OR
INSTRUMENTS RELATING THERETO, REPRESENT THE ENTIRE AGREEMENT BETWEEN THE
PARTIES, AND IT IS EXPRESSLY UNDERSTOOD THAT ALL PRIOR CONVERSATIONS OR
MEMORANDA BETWEEN THE PARTIES REGARDING THE TERMS OF THIS AGREEMENT SHALL BE
SUPERSEDED BY THIS AGREEMENT. ANY AMENDMENT, APPROVAL, OR WAIVER BY WESTERN OF THE TERMS OF THIS
AGREEMENT, THE NOTE AND ANY CONTRACTS OR INSTRUMENTS RELATING THERETO, MUST BE
IN WRITING OR CONFIRMED WRITING, AND SHALL BE EFFECTIVE ONLY TO THE EXTENT
SPECIFICALLY SET FORTH IN SUCH WRITING. THIS AGREEMENT, IN CONJUNCTION WITH
THE NOTE AND ANY CONTRACTS OR INSTRUMENTS RELATING THERETO, SHALL SERVE TO
EVIDENCE THE TERMS OF THE ENTIRE AGREEMENT BETWEEN THE PARTIES.</B>




<P align="center" style="font-size: 10pt">12
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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Please acknowledge your acceptance of and agreement to the terms of this
Agreement by dating and executing where indicated.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="55%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="63%">&nbsp;</TD>
</TR>
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<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Very truly yours,</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>WESTERN NATIONAL BANK</B></TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;/s/ JAMES B. KREUZ</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><HR size="1" noshade width="100%" align="left"></TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;James R. Kreuz</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Senior Vice President</TD>
</TR>

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</DIV>



<P align="left" style="font-size: 10pt"><B>AGREED TO AND ACCEPTED THIS<BR>
22<SUP>nd</SUP> DAY OF DECEMBER 2004.</B>


<P align="left" style="font-size: 10pt"><B>BORROWER:</B>



<P align="left" style="font-size: 10pt"><B>DAWSON GEOPHYSICAL COMPANY</B>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="76%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;/s/ STEPHEN C. JUMPER</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><HR size="1" noshade width="30%" align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stephen C. Jumper, President</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;/s/ L. DECKER DAWSON</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><HR size="1" noshade width="30%" align="left"></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;L. Decker Dawson,</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Chairman of the Board</TD>
</TR>

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</TABLE>
</DIV>




<P align="center" style="font-size: 10pt">13
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