Montego Minerals Launches $16 Million Offering in Permian Basin
Montego Minerals, a long-term investor in oil and gas royalties and mineral rights, has announced the opening of its 22nd portfolio, Hillcrest Minerals, LLC. The $16 million offering is an all-cash investment opportunity primarily located in the United States’ most productive energy basin, the Permian Basin.
Hillcrest is comprised of a portfolio of royalty assets designed to provide potential 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. The portfolio is made up of 29 individual properties and 25 operators, including: Continental, Double Eagle, BPX, Apache, Exxon, Diamondback Energy, Comstock. Currently, the acreage has 271 producing wells, 52 DUCs (drilled but uncompleted), 20 active permits and room for more than 127 additional wells to be drilled.
“Hillcrest Minerals demonstrates the characteristics of a well-positioned royalty asset. Over the past six months, our acquisitions team has acquired properties with current production, future opportunities through drilled but uncompleted wells and permits, and additional potential drilling locations. After reviewing a wide range of options, including real estate valued at over $150 million, we carefully selected $16 million in purchases,” said Cutler Gist, managing partner.
“We maintain a disciplined approach, built on over three generations of experience in acquiring and managing energy real estate, with a focus on the Permian Basin and other key regions,” Gist added.
Earlier this month, Montego Minerals announced the close of its 21st portfolio, Permian Ranch Properties LLC. The $18.02 million offering was an all-cash investment opportunity located in the basin. Made up of 86 individual properties, the portfolio expanded across approximately 81,453 acres, 11 counties in Texas, three counties in Wyoming, and one county in Louisiana. The closing of the Permian Ranch portfolio followed the closing of Montego Minerals’ $15.7 million Cedar Ranch Properties offering, and $14.9 million Cypress Creek Minerals offering.
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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