Montego Minerals Closes Latest $18 Million Portfolio in Permian Basin
Montego Minerals, a long-term investor in oil and gas royalties and mineral rights, announced the close of its 21st portfolio, Permian Ranch Properties LLC. The $18.02 million offering is an all-cash investment opportunity primarily located in the United States’ most productive energy basin, the Permian Basin.
Permian Ranch represents a diversified portfolio of royalty assets historically delivering both income and growth to accredited investors. The portfolio expands across approximately 81,453 gross acres, 11 counties in Texas, three counties in Wyoming, and one county in Louisiana. Montego Minerals said the portfolio is made up of 86 individual properties and tier one operators, including Diamondback, Chesapeake, Aethon, Endeavor, EOG and Continental.
Currently, the acreage has 400 producing wells, 94 DUCs (drilled but uncompleted), 57 active permits, and room for more than 208 additional wells to be drilled.
“Closing our 21st energy royalty portfolio showcases our team’s continued dedication and expertise. After over a year of negotiations, the Permian Ranch portfolio strategically positions client capital into large, diversified acreage, mitigating traditional risks associated with oil and gas investing,” said Sean Caldwell, president of capital markets.
The closing of the Permian Ranch portfolio follows closely on the closing of Montego Minerals’ $15.7 million Cedar Ranch Properties offering, and Cypress Creek Minerals portfolio, a $14.9 million offering also located in the Permian Basin.
“In a dynamic energy market, Montego remains focused on creating long-term opportunities for our investors with available cash or 1031 eligible proceeds,” said Caldwell.
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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