Kenneth Graves and Kenneth Davis v. Anschutz Oil Co., Inc., a Corporation

PHILLIPS, Circuit Judge.

On July 24, 1958, Graves and Davis entered into a “farmout” agreement with the Atlantic Refining Company 1 under which they agreed to drill at their sole cost and expense a test oil and gas well on certain lands located in Bighorn County, Wyoming, on which Atlantic held oil and gas leases. The test well was to be drilled to a depth sufficient to penetrate 100 feet into the Tensleep formation, the top of which was estimated to be 6,500 feet below the surface of the ground. Under the “farmout” agreement, Graves and Davis were to core and test any zones where a “show of…