Montego Minerals, an investor in oil and gas royalties and mineral rights in the Permian Basin of the Unites States, has closed its fourth 1031-eligible portfolio, Caprock Minerals. The nearly $13.7 million fund was an all-cash and equity investment and was fully subscribed in 90 days, the company said.
Caprock Minerals owns 24 producing and non-producing properties across 53,6000 acres in the Midland Basin area of the Permian Basin, a large sedimentary basin in western Texas and southeastern New Mexico with rich petroleum, natural gas, and potassium deposits.
The fund acquires mineral and royalty interests for properties that have existing leases with energy companies and in most cases, the company claims, there is 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.
“Caprock Minerals has provided our investors with significant opportunity, and the fact that we were subscribed in three months is a testament to the hard work of the team,” said Rhett Gist, principal at Montego Minerals. “We will continue to manage the portfolio in the best interests of our investors and deliver ongoing opportunities for income and wealth creation.”
Montego Minerals plans to open its fifth investment fund to investors in February 2020.
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 40 years