Montego Minerals Closes $15.7M Cedar Ranch Portfolio

Montego Minerals has closed its 20th portfolio, Cedar Ranch Properties LLC, a $15.7 million investment in the Permian Basin, featuring 81 properties with significant current and future production potential.

July 11, 2024

Montego Minerals, an established investor in oil and gas royalties and mineral rights, has closed its 20th portfolio, Cedar Ranch Properties LLC, a $15.7 million all-cash investment focused on the Permian Basin in Midland, Texas.

Cedar Ranch Properties is a diversified portfolio spanning 87,300 gross acres across 10 Texas counties, three in Wyoming, and one in Louisiana, comprising 81 properties. Notable operators include Diamondback, Devon, Chesapeake, and EOG. The portfolio features 462 producing wells, 62 drilled but uncompleted wells (DUCs), five active permits, and potential for over 184 additional wells.

Gregg Frasure, director of acquisitions and land, stated, "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." The portfolio includes proven and producing assets with significant cash flows and future growth potential.

Montego Minerals acquires mineral and royalty interests with existing leases and significant production. Operators cover all drilling and operating costs, while Montego Asset Management collects and distributes royalty payments to investors monthly.

The Cedar Ranch closing follows the recent Cypress Creek Minerals portfolio, a $14.9 million offering also in the Permian Basin. Last year, the firm closed several other portfolios, including Ashwood Minerals, Reeves River Minerals, and Iron Oak Minerals. Montego Minerals is a family-run business with three generations of petroleum engineers and geologists who have been evaluating and purchasing minerals and royalties in the Permian Basin for 50 years.