Montego Minerals Fully Subscribes 23rd Portfolio, a $17M Permian Basin Offering
Montego Minerals, an investor in oil and gas royalties and mineral rights, has announced the full subscription of its 23rd portfolio, Redwood Minerals, LLC. The $17 million offering was an all-cash investment program primarily focused on assets in the United States’ most productive energy basin, the Permian Basin.
Redwood represents a diversified portfolio of royalty assets historically delivering both income and growth to accredited investors, according to Montego. The portfolio encompasses approximately 49,024 gross acres across 13 counties in Texas and is made up of 71 individual properties operated by 15 companies, including: Diamondback, Exxon, EOG, ConocoPhillips, Double Eagle, Surge and Aethon. Currently, the acreage has 398 producing wells, 81 DUCs (drilled but uncompleted), six active permits and room for more than 242 additional wells to be drilled.
“For our adviser partners seeking steady access to high-quality royalty real estate, Montego Minerals remains a trusted and reliable partner. The Redwood Minerals portfolio stands as a testament to our team’s strategic investments in property sourcing, engineering, and asset management – providing diversified inventory solutions for investors utilizing 1031 exchanges to achieve both income and growth,” said Sean Caldwell, president of capital markets.
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, according to the company. 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.
“When executed correctly, investments in minerals and royalties offer owners access to years, if not decades, of engineering and technological advancements without the commensurate financial requirements,” added Caldwell.
Montego Minerals also announced their plans to launch another 1031 eligible portfolio – White Rock Minerals – in the coming weeks. Last fall, it launched its 22nd portfolio – Hillcrest Minerals LLC – a $16 million all-cash investment offering.
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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