X0304 4 2012-03-14 1 0000810117 SOUTHWEST ROYALTIES INSTITUTIONAL INCOME FUND VII-B L P n/a 0000821699 SOUTHWEST ROYALTIES INC 6 DESTA DRIVE, SUITE 6500 MIDLAND TX 79705 0 0 1 0 Limited Partnerships Interest 2012-03-14 4 P 0 8490.5 262.04 A 0 D On March 14, 2012, the Issuer merged into Southwest Royalties, Inc., its general partner and a wholly owned subsidiary of Clayton Williams Energy, Inc. Upon the merger all limited partnerships interest of the Issuer were converted into the right to receive cash consideration and were cancelled in accordance with the Agreement and Plan of Merger between Southwest Royalties, Inc. and the Issuer dated October 28, 2011. /s/ Mel G. Riggs, signed on behalf of Southwest Royalties, Inc. by Mel G. Riggs, President 2012-03-14