Phoenix Capital Group has acquired nearly 600,000 oily net mineral acres in the Bakken play from financial institution AgWest Farm Credit, according to a Jan. 15 press release.

On Jan. 5, Phoenix purchased interests in four states, including more than 50,000 net mineral acres in Montana’s Richland and Roosevelt counties. The deal is one of the largest Phoenix has made.

Financial terms of the transaction weren’t disclosed. The minerals interests generate approximately $200,000 in royalties per month and in 2023 reached $2.47 million—an amount expected to grow as the company further develops the acreage.

Phoenix said the assets include 441 stable producing, shallow decline wells on the acreage acquired from AgWest and anticipates more than 100 new well locations that can and likely will be drilled in the future across the acquired land.

Justin Arn, Phoenix chief land and title officer said that when the company learned AgWest was considering a divestment of its interests, “our team swung into action.”

“While deals like these are considered a 'once-in-a-generation' occurrence in the oil business, due to their overall size and complexity, Phoenix Capital Group was founded precisely to become the preferred buyer for these large divestments," Arn said.

Phoenix has actively acquired minerals and leasehold in Richland and Roosevelt counties since 2019. The Montana side of the Bakken continues to be a focus area for the company, as the state offers “some of the most attractive investment opportunities in the Williston Basin,” the company said.