Montego Fully Subscribes $16 Million Offering in Permian Basin
Montego Minerals, a long-term investor in oil and gas royalties and mineral rights, announced the full subscription of its 22nd portfolio, Hillcrest Minerals, LLC. The $16 million offering launched in September of this year as an all-cash investment opportunity primarily located in the United States’ most productive energy basin, the Permian Basin.
“With three generations of tenure in Midland Texas, Montego Minerals has earned a distinguished reputation, allowing us exclusive access to off-market inventory. This reputation not only enables us to engineer and evaluate the merits of each deal meticulously, but also provides the luxury of pursuing ongoing opportunities with our partners,” said Sean Caldwell, president of capital markets at Montego Minerals.
Hillcrest represents a diversified portfolio of royalty assets historically delivering both income and growth to accredited investors. The portfolio expands across approximately 39,698 gross acres – 10 counties in Texas, and one county in New Mexico. It has 271 producing wells, 52 drilled but uncompleted wells, or DUCs, 26 active permits and room for more than 127 additional wells to be drilled.
Hillcrest Minerals is made up of 29 individual properties and 25 operators, including: Continental, Double Eagle, BPX, Apache, Exxon, Diamondback Energy, and Comstock.
Montego Minerals is also excited to announce their next 1031 exchange eligible portfolio – Redwood Minerals – will launch in the coming weeks.
“When executed correctly, investments in minerals and royalties grant owners access to years, if not decades, of engineering and technological advancements without the commensurate fiscal requirements,” added Caldwell.
In September 2024, Montego similarly closed its 21st portfolio, Permian Ranch Properties LLC. The $18.02 million offering was an all-cash investment opportunity made up of 86 individual properties in Texas, Wyoming, and Louisiana.
Montego Minerals acquires mineral and royalty interests for properties that have existing leases with energy companies and, in most cases, feature significant production already in pay status to investors. The operators drilling wells on the property pay all drilling and operating costs. The fund sponsor, Montego Asset Management, collects royalty payments from the operators and distributes the funds monthly to investors.
Montego Minerals is a three-generation family office of petroleum engineers and geologists that has evaluated and purchased minerals and royalties in the Permian Basin for the last 50 years.
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