Montego Minerals Launches $18 Million Offering in the Permian Basin
Montego Minerals, an investor in oil and gas royalties and mineral rights, announced the opening of its 26th portfolio, Coyote Plains Properties LLC. The $18 million offering aims to capitalize on Montego’s proven track record at acquiring resource rich mineral assets located in the United States’ most productive energy field, the Permian Basin.
The Coyote Plains Properties represents a diversified portfolio of royalty assets historically delivering both income and growth to accredited investors. The portfolio expands across approximately 29,262 gross acres, and 16 counties in Texas. The portfolio is made up of 40 individual properties, operated by six companies including Diamondback, Exxon, and EOG. Currently, this acreage has 235 producing wells, 56 DUCs (drilled but uncompleted), 24 active permits, and room for more than 124 additional wells to be drilled.
“The Coyote Plains portfolio represents another carefully assembled set of assets delivered by Montego,” says Gregg Frasure, vice president of acquisitions. “This portfolio strategically concentrates on large, contiguous acreage positions in the core of the Permian Basin and East Texas. These assets offer the potential for steady cash flow generation, with room for future upside through additional drilling activity. We believe our Permian acreage will continue to serve as the backbone of the portfolio, while our East Texas positions are well-situated to benefit from expanding takeaway capacity driven by LNG growth along the Gulf Coast.”
Earlier this spring, Montego Minerals announced the opening of its fourth income and growth offering and the 25th portfolio: Montego Capital Fund 4, LP, a $75 million offering.
More recently, it fully subscribed its 24th portfolio, White Rock Minerals, LLC. The $18.5 million offering expands across approximately 150,683 gross acres, including 13 counties in Texas and two counties in Wyoming. The portfolio consists of 194 individual properties and five operators.
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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