On June 2, 2009, Dawson Geophysical Company (the "Company") entered into a new revolving line of credit loan agreement with Western National Bank. Under the new facility, the total amount available for the Company to borrow is $20.0 million, subject to a borrowing base calculation based on the Company's then-outstanding accounts receivable, as more fully described in the loan agreement.
Under the new facility, from June 1 through June 30, 2009, interest will accrue at an annual rate equal to the Prime Rate, minus three-quarters percent (.75%). Beginning as of July 1, 2009, interest will accrue at an annual rate equal to either: (a) the 30-day London Interbank Offered Rate ("LIBOR"), plus two and one-quarter percent (2.25%), or (b) the Prime Rate, minus three-quarters percent (.75%) as the Company directs monthly, subject to an interest rate floor of four percent (4%). The loan agreement contains customary covenants for credit facilities of this type, including limitations on disposition of assets and mergers and reorganizations. The Company is also obligated to meet certain financial covenants under the loan agreement, including maintaining specified ratios with respect to cash flow coverage, debt to tangible net worth, and current assets and liabilities. The Company's obligations under the new loan agreement are secured by a security interest in its accounts receivable, equipment and related collateral. As of June 2, 2009, no amounts were outstanding under the loan agreement.
All outstanding amounts owed under the loan agreement become due and payable no later than the maturity date of June 2, 2011, and are subject to acceleration upon the occurrence of events of default which the Company considers usual and customary for an agreement of this type, including failure to make payments under loan agreement, non-performance of covenants and obligations or insolvency or bankruptcy (as described in the loan agreement).
The foregoing description of the loan agreement does not purport to be complete and is qualified in its entirety by reference to the Revolving Line of Credit Loan Agreement and the Security Agreement, which are filed as Exhibits 10.1 and 10.2 to this Current Report on Form 8-K.
Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

The information provided in Item 1.01 to this Current Report on Form 8-K is incorporated herein by reference.

(d) Exhibits

     EXHIBIT
     NUMBER              DESCRIPTION

     10.1           -    Revolving Line of Credit Loan Agreement, dated June 2, 2009,
                         between the Company and Western National Bank.

     10.2           -    Security Agreement, dated June 2, 2009, between the Company and
                         Western National Bank.