Home News Montego Minerals Closes Fifth Investment Fund

Montego Minerals Closes Fifth Investment Fund

Montego Minerals, an investor in oil and gas royalties and mineral rights in the Permian Basin of the Unites States, has closed its fifth 1031 exchange-eligible private placement fund.

Montego Minerals, an investor in oil and gas royalties and mineral rights, has closed its fifth 1031 exchange-eligible private placement fund, Midland Mesa Minerals LLC.

The $12.3 million fund was an all-cash and equity investment opportunity located in the Permian Basin, a large sedimentary basin in western Texas and southeastern New Mexico with rich petroleum, natural gas, and potassium deposits.

Midland Mesa Minerals expands across 18,640 acres, seven counties, 15 individual properties, and eight operators. Currently, the land has more than 593 producing wells, with room for approximately 300 additional ones, the company said.

Montego Minerals plans to open its sixth investment fund in November 2021.

“In these most uncertain times, Midland Mesa Minerals has provided our investors with an opportunity to own an inflationary hedged asset producing monthly tax advantaged income,” said Rhett Gist, principal. “Our family has weathered four price corrections over our 60 years in the energy business. Through those periods our family learned many valuable lessons. One was to never sell your minerals. The second – continue acquiring when others are fearful.”

Montego Minerals acquires mineral and royalty interests for properties that have existing leases with energy companies. According to the company, the operators drilling wells on the property pay all drilling and operating costs, and the fund’s sponsor, Montego Asset Management, collects the royalty payments from the operators, and distributes the funds monthly to investors.

Montego Minerals sponsors energy royalty portfolios offered within the independent broker-dealer community. The firm 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. The company has $135 million in assets under management.

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