Assignments: Wellbore Versus Lease Contract Interpretation: Ambiguity Joint Operating Agreement: Election to Participate

摘要

This case involves a dispute over the ownership of certain interests in the Stetson well and the HL2 well梑oth of which ate located in the W/2 of the same section of land. On August 17,2005, Jack Matthews, president of JKM, makes an offer to Sue Ann Craddock, president of Chisos, to purchase "the Stetson #1 in Eddy County, New Mexico" for $43,000. The offer indicates that JKM desires to obtain "100% of the [working interest] and all of the [net revenue interest]." Chisos counters that it would be willing to "sell [JKM a] 100% Working Interest and a 75% Net Revenue Interest for $55,000." JKM prepares a conveyance for the deal.