Rising Phoenix Royalties Expands Strategy with First Non-Operated Working Interest Acquisition in the DJ Basin
31 Julio 2024 - 9:00AM
Business Wire
Rising Phoenix Royalties (RPR), a prominent mineral and royalty
acquisition company, today announced the closing of a significant
deal for a Working Interest PDP (Proved Developed Producing)
property in Weld, Colorado. This transaction marks a historic
milestone for RPR as its first non-operated drilling acquisition,
signifying a strategic expansion into a new and lucrative area of
the oil and gas sector.
This deal signifies a strategic shift for Rising Phoenix
Royalties. Traditionally focused on mineral and royalty
acquisitions, this transaction demonstrates the company’s
diversification into the non-operated drilling space.
"Today marks a significant step for us as we venture into the
non-operated working interest space, expanding our acquisition
strategy beyond just mineral rights. Our dedicated in-house
acquisition team is actively sourcing these opportunities from
non-op owners and industry partners," stated Jace Graham, CEO of
Rising Phoenix Royalties. "This move enables us to directly
participate in the drilling of new wells, presenting a distinct and
potentially lucrative opportunity for our investor base, who have
typically focused on our mineral funds."
Rising Phoenix Capital, a sister company to Rising Phoenix
Royalties, is poised to capitalize on this expansion. After
launching its inaugural non-operated drilling fund in 2023, the
company plans to launch a second non-operated drilling fund later
this year. Drilling acquisitions like the one announced today could
be allocated to this fund, providing investors with a direct path
to participate in the drilling of new wells. Non-operated drilling
funds offer investors the potential for significant returns
alongside a highly attractive tax benefit.
“These non-op drilling funds provide investors with an
opportunity to invest directly in the drilling of new wells,” said
Adam Lapucha, VP of Engineering of Rising Phoenix Royalties.
“Additionally, they offer an extremely favorable tax write-off of
all intangible drilling costs (IDCs), which ranges from 70% to 80%
of the entire investment amount in the first year. This makes these
types of investments extremely attractive for offsetting ordinary
income gains an investor may have in the year.”
Rising Phoenix Royalties remains committed to its core business
of providing mineral owners with swift and competitive cash offers
for their mineral interests. This expansion into non-operated
drilling reflects the company’s dedication to continuous
improvement and a commitment to delivering exceptional value to all
stakeholders. For more information about Rising Phoenix Royalties
and their services, please visit
www.risingphoenixroyalties.com.
About Rising Phoenix Royalties
Rising Phoenix Royalties is a leading mineral and royalty
acquisition company specializing in providing mineral owners with
competitive cash offers. With a focus on operational excellence and
strategic acquisitions, Rising Phoenix Royalties delivers value and
growth opportunities to investors in the energy sector.
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Aquila Mendez-Valdez Aquila@hitpr.com (210)
606-5251