Bartholomae Oil Corp. v. Oregon Oil & Development Co.

This is an appeal from a judgment for the plaintiff for $62,978.79 and interest for sinking an oil-well pursuant to contract.

The plaintiff is a corporation engaged in drilling oil-wells. August 24, 1923, it was occupied in sinking an oil-well on certain lots at Signal Hill, Los Augeles County. The well had reached a depth of 2,028 feet. W. R. McDonald then purchased the lease of the property. A written contract with McDonald was executed on the last-mentioned date by the terms of which the well was to be completed by the plaintiff. This contract and lease were subsequently’ assigned to the defendant. The well was called "Bartholomae No. 4.” By the terms of this contract the plaintiff agreed to continue the drilling of the well by means of its rotary drilling equipment “with reasonable diligence until a depth of 4,500 feet has been attained therein unless petroleum in paying quantities shall have been found therein at a lesser depth.” In the event oil was not produced before the well had reached a depth of 4,500 feet, it was provided the plaintiff should continue drilling the well to a depth “desired by the owner.” In an amendment to the contract executed by the interested…