Montego Minerals Closes Another Portfolio: Cedar Ranch Properties
Montego Minerals, a long-term investor in oil and gas royalties and mineral rights, announced the close of its 20th portfolio, Cedar Ranch Properties LLC. The $15.7 million offering is an all-cash investment opportunity primarily located in the United States’ most productive energy basin – the Permian Basin in Midland, Texas.
Cedar Ranch represents a diversified portfolio of royalty assets historically delivering both income and growth to accredited investors. The portfolio expands across approximately 87,300 gross acres, including 10 counties in Texas, three counties in Wyoming, and one county in Louisiana. The portfolio comprises 81 individual properties and tier one operators, including: Diamondback, Devon, Chesapeake, Aethon, Endeavor, EOG, Continental, WRC, Surge, and Callon. Currently, this acreage has 462 producing wells, 62 DUCs (drilled but uncompleted), five active permits, and room for more than 184 additional wells to be drilled.
“Montego’s specialized approach to portfolio construction and engineering gives us confidence that Cedar Ranch Minerals will be another quality portfolio investment for our stakeholders,” said Gregg Frasure, director of acquisitions and land.
“Cedar Ranch includes income and growth assets in the Permian Basin, East Texas, and the Powder River Basin in Wyoming. This portfolio is particularly exciting as it includes significant proven and producing assets with material cash flows today. Adding in the 184 proven but undeveloped locations for future growth, Montego’s cash and 1031 exchange eligible programs are designed with line-of-sight production growth to provide investors with sustained debt-free revenues, both short- and long-term,” Frasure added.
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.
The closing of the Cedar Ranch portfolio follows closely on the closing of Montego Minerals’ Cypress Creek Minerals portfolio, a $14.9 million offering also located in the Permian Basin. The firm also closed several portfolios last year, including its Ashwood Minerals portfolio, its Reeves River Minerals portfolio, and its Iron Oak Minerals portfolio.
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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