Endeavor Energy Resources’ subsidiary 1979 Royalties LP closed an acquisition of acquisition of approximately 5,000 net oil and gas mineral and royalty interests in the Midland Basin, according to a Sept. 28 press release.

The assets were sold by EnCap Investments LP portfolio company Peacemaker Royalties LP for $61 million in cash, according to the press release.

Primarily operated by Endeavor and Ovintiv Inc., the acquisition covers royalty acres in Midland’s Martin and Dawson counties, Texas. The leasehold has 218 producing wells with a net present value discounted at 10% per annum of approximately $35 million.

The properties are approximately 15% developed horizontally and hold approximately 500 additional undeveloped locations across seven primary horizontal targets, 1979 Royalties said.

Total PV-10 value is “in excess of $150 million,” with an undiscounted value of approximately $425 million generated based on net reserves of more than 9 MMboe. The effective date of the transaction is June 1, 2023.

Vinson & Elkins served as legal adviser to 1979 Royalties and Detring Energy Advisors served as exclusive marketing adviser to Peacemaker. Davis, Gerald & Cremer served as Peacemaker’s legal adviser.