Montego Minerals, an investor in oil and gas royalties and mineral rights in the Permian Basin of the United States, announced the close of its 19th portfolio, Alpine Ranch Minerals LLC. The $14.2 million offering is an all-cash investment opportunity primarily located in the United States’ Permian Basin.
Montego says that Alpine Ranch represents a diversified portfolio of royalty assets historically delivering both income and growth to accredited investors. The portfolio expands across approximately 15,324 gross acres, eight counties in Texas, and one county in North Dakota. The portfolio is made up of 24 individual properties, and 12 operators, including Pioneer Natural Resources, Diamondback Energy, Occidental Petroleum, Ovintiv, and SM Energy. Currently, this acreage has 25 producing wells, 67 DUCs (drilled but uncompleted), 83 active permits, and room for more than 112 additional wells to be drilled.
Montego closed its 18th portfolio earlier this year, Cypress Creek Minerals LLC, occupying counties in New Mexico, North Dakota, and Texas.
“… At Montego Minerals, we have continually committed to acquiring royalty real estate within America’s most productive energy basins, positioned to benefit from the recent under investment in oil and gas. In the short period from inception to close, Alpine Ranch had an additional six permits filed, 14 wells drilled, and another 28 completed. Our engineers and team are proud to see the early development atop these properties already,” 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. 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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