Montego Minerals Fully Subscribes $15.7 Million Oil & Gas Fund
Montego Minerals, an investor in oil and gas royalties and mineral rights, announced the close of its seventeenth portfolio, Permian Plains Properties LLC.
Montego says the $15.7 million fund was an all-cash investment opportunity located in the United States’ Permian Basin, located primarily in western Texas.
According to the company, Permian Plains Properties LLC represents a diversified portfolio of royalty assets historically delivering both income and growth to accredited investors.
The portfolio expands across approximately 82,556 gross acres, six counties, 19 individual properties, and 12 operators including Aethon Energy, Comstock, Diamondback, Permian Resources and Surge Energy.
Currently, the acreage has 658 producing wells, 16 drilled but uncompleted wells, 24 active permits and space for more than 94 additional wells to be drilled.
“In some corners of the market, 1031 exchange velocity has slowed precipitously; yet, at Montego, we continue to see demand from clients seeking income-producing, tax-advantaged royalty property,” said Sean Caldwell, senior vice president of capital markets. “The successful closing of our 17th 1031-eligible portfolio reflects the confidence placed in us by our investors and is a testament to the steadfast belief in America’s energy landscape.”
Montego says the operators drilling wells on the property pay for all of the 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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