Montego Minerals Launches $75 Million Offering in Permian Basin
Montego Minerals, an investor in oil and gas royalties and mineral rights, announced the opening of its fourth income and growth offering and the 25th portfolio overall: Montego Capital Fund 4, LP. According to the company, the $75 million offering aims to capitalize on Montego’s history of acquiring mineral assets located in the nation’s most productive energy field – the Permian Basin.
Montego said the fund gives “investors the ability to participate in the oil and gas industry without the personal risks associated with drilling or working interest risk exposure.”
The latest fund will represent a diversified investment in multiple oil and gas properties across the Permian Basin and other prolific shale formations in the United States. Montego Minerals launched a significantly smaller $16 million offering last fall, known as Hillcrest Minerals, LLC.
“Montego’s track record reflects consistent performance. Across our three prior income and growth funds, we’ve delivered an average annualized return of 19.77% to investors. We’ve also achieved 14 successful exits, demonstrating our ability to strategically manage and divest royalty assets at the right time,” said Cutler Gist, principal.
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.
“Our current offering builds on the same proven investment thesis that has guided our past successes. By leveraging geological expertise and strategic portfolio construction, we aim to continue delivering the reliable, long-term value seen in previous Montego capital funds. Our focus remains on acquiring high-potential assets that align with investors’ long-term goals for both growth and income generation,” added Gist.
Earlier this year, Montego Minerals fully subscribed its 23rd portfolio, a $17 million Permian Basin offering: Redwood Minerals, LLC. That portfolio encompasses nearly 50,000 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. At the time of AltsWire reporting, it had 398 producing wells, 81 DUCs (drilled but uncompleted), six active permits and room for more than 242 additional wells to be drilled.
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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