Watson Oil Corp. v. Cavanaugh

SUGG, Justice:

This is an appeal by the Watson Oil Corporation from a decree of the Chancery Court of Jefferson Davis County awarding Charles W. and Louise T. Cavanaugh damages in the amount of $1,776 against the Company. Watson was complainant and the Cavanaughs were defendants and cross-complainants in the suit in the Chancery Court.

Watson was engaged in exploratory drilling for oil and gas on the Cavanaugh property under a farmout agreement with Shell Oil Company, a lessee of the Cavan-aughs. Watson drilled a 17,000 foot Cotton Valley test on the land and abandoned the well as a dry hole.…