Delukie v. American Petroleum Company

On the 23rd of September, 1923, F. M. DeLukie, hereafter called appellant, wrote the following letter to the American Petroleum Company, hereafter called appellee:

"Gentlemen: This confirms oil contract between us as follows:

"(1). We have sold and agreed to deliver 50,000 barrels of heavy Smackover crude out of production from our lease being the SE 1/4 of NW 1/4, section 17, township 16 south, range 15 west, at fifty cents a barrel (of 42 U.S. gallons), with the usual pipe-line deductions on oil runs."

"(2). All the production from this lease will be applied to such delivery until said 50,000…