Sonat Exploration Co. v. Superior Oil Co.

ROSE, Justice.

This appeal originates from a complaint filed by Eason Oil Company (Eason) seeking cancellation of an oil and gas lease by reason of the lessees’ alleged breach of the implied covenant to develop. The trial court refused to grant the cancellation and Eason has appealed to this court. 1 One of the issues presented by this appeal is whether a lessor — or one standing in the shoes of a lessor 2 — must prove a reasonable expectation of profit from further drilling in order to establish a breach of the implied covenant to develop. A second issue is whether the evidence supports the…