Montego Minerals Fully Subscribes $25.7M Canyon State Minerals Offering
Montego Minerals has fully subscribed its 32nd portfolio offering, a $25.7 million raise called Canyon State Minerals LLC, the company said.
The 1031 exchange-eligible offering gives accredited investors exposure to a diversified portfolio of oil and gas mineral and royalty interests, designed to provide both current income and long-term growth potential, according to the company.
Canyon State Minerals spans 51,671 gross acres across 16 counties in Texas, New Mexico, and Louisiana, with interests operated by seven companies: Exxon, Diamondback Energy, ConocoPhillips, Occidental Petroleum, EOG, Mewbourne, and Permian Resources. The portfolio currently includes 234 producing wells, 116 drilled-but-uncompleted wells, seven active permits, and 375 engineered proved undeveloped, or PUD, locations, according to third-party reserve figures cited by the company.
Montego notified the U.S. Securities and Exchange Commission on Aug. 3 that the offering sought to raise approximately $24.4 million. The company said the additional amount represents total portfolio equity, and that Montego retains 5% of the portfolio.
Canyon State Minerals is organized as a limited liability company rather than as a Delaware statutory trust, the structure more commonly used in securitized 1031 exchange offerings. Investors acquire a direct ownership interest in like-kind replacement property consisting of mineral and royalty assets, held during the subscription period through an LLC formed to acquire them. Each investor’s interest in the LLC corresponds to a proportional ownership interest in the underlying assets.
“Canyon State Minerals is representative of the disciplined approach we take to building each Montego portfolio,” said Gregg Frasure, vice president of acquisitions at Montego Minerals. “We focus on acquiring assets where established production is complemented by meaningful future development potential, creating multiple opportunities for value throughout the life of the investment. The successful subscription of Canyon State reinforces the continued demand we’re seeing for thoughtfully constructed mineral and royalty portfolios and the confidence investors place in this asset class.”
Montego did not disclose which broker-dealers or wealth management platforms distributed the offering, or how many investors participated.
Canyon State Minerals follows a string of recent Montego raises that also reached full subscription, including the $22 million Wolf Fork Minerals portfolio, $22.3 million Flatiron Minerals offering, and the $19.9 million Vaquero Minerals raise.
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