Del-Ray Oil & Gas, Inc. v. Henderson Petroleum Corporation, Henderson Petroleum Corporation, a Nevada Corporation v. Liskow & Lewis, a Partnership

I

On February 24, 1981, William H. Krutzer, III with his wife (Krutzer) and Del-Ray Oil and Gas Company (Del-Ray) each purchased a forty-nine percent interest in three mineral leases, the “Broussard lease” and two “Landry leases.” Krutzer and Del-Ray intended to resell these lease interests to Henderson Petroleum Corporation (Henderson), pursuant to prior negotiations with Henderson. Pershing J. Latour and his wife (Latour) held the remaining two percent interest in these leases.

The Broussard lease contained a sixty-day cessation of operations clause. According to its provisions, the lease…