Perpetual Production LLC and Silver Hill Energy Holdings LLC announced on Tuesday a new partnership to acquire assets in the Midcontinent and Permian Basin.

The Dallas-based companies have formed a joint venture (JV) to buy mineral, royalty and nonoperated interests in oil and gas assets across Oklahoma, Texas and New Mexico. Under the deal, Silver Hill, which was founded in late 2018 to make acquisitions and investments across the energy space, would have the right to invest an undisclosed amount of equity into the Perpetual Resources LLC (PRLLC) JV.

The partnership has received seed money from both companies, which are seeking additional investments to expand the venture’s scale.

Perpetual was founded in 2017 to acquire assets in the U.S. onshore and quickly formed a JV with private equity (PE) firm Castlake to buy properties in Oklahoma’s stacked reservoirs. It has since built what CEO Josh R. Camp said is a “sizeable asset position.” Camp is to lead PRLLC’s day-to-day operations as CEO, while Silver Hill managing partner Kyle D. Miller would serve as nonexecutive chairman and guide the JV’s strategic direction.

Both have a strong track record in the space. Before starting Perpetual, Camp served as director of finance at the now defunct American Energy Partners LP, which was established by the late Chesapeake Energy Corp. co-founder Aubrey McClendon. Miller formerly served as CEO of Silver Hill Energy Partners LLC, which was sold to RSP Permian in 2016 for $2.5 billion. RSP has since been acquired by Concho Resources Inc.

“While the broader oil and gas space has been challenged from an investment perspective for the past several years, we continue to believe there are ways to navigate through the current environment to successfully invest in attractive risk-adjusted opportunities through the use of differentiated information and strategies,” Miller said.

Investors have largely soured on the oil and gas industry, but PE has continued to pump money into the space. A number of startups have been launched this year alone.

In July, Wing Resources IV LLC formed with $100 million from PE firm NGP. While Switchback Energy Acquisition Corp., led by former RSP executives and also backed by NGP, said in July that it would create another Lower 48 operator.

Before that, former WildHorse Resource Development Corp. executives landed more than $1 billion in PE from Warburg Pincus LLC and Kayne Anderson Advisors LP to form Houston-based explorer WildFire Energy I LLC. Kayne Anderson also provided $100 million this year to Houston-based Indianola Energy LLC, which plans to help producers earn more from undeveloped acreage across North America.