Boutique investment company Rising Phoenix Capital has completed the sale of a significant mineral package in the Barnett Shale, Denton County, Texas, US.
The 661.88-net-royalty-acre asset, operated by BKV Barnett, was a component of the Rising Phoenix Royalty Fund III and is known for its high cash flow and development potential.
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While the industry’s attention has largely turned to the Permian Basin, Rising Phoenix Capital has strategically capitalised on assets in less targeted areas like the Barnett Shale.
Rising Phoenix Capital CEO and founder Jace Graham said: “We are active in the Permian, but we also look for opportunities in areas like the Barnett Shale, where competition is lower, pricing can be more favourable, and the right deals can deliver strong, stable returns.”
The company acquired the Denton County asset from a commercial land development company, recognising early signs of renewed drilling interest.
BKV Barnett’s development activities have since confirmed, with two wells completed in June 2023, two last December and three more spudded in March of this year.
Jace Graham said: “This was a classic example of what we look for: strong current cash flow with identifiable upside.
“BKV’s activity added value for our fund, and we were able to complete a sale that generated excellent returns for our investors while still leaving some meat on the bone for the buyer to monetise.”
The details of the buyer and the sales price remain confidential; however, the transaction is expected to elevate the performance of Rising Phoenix Royalty Fund III towards the higher end of its expected returns.
Rising Phoenix Capital’s strategy concentrates on acquiring cash-flowing, yield-generating oil and gas mineral assets with stable production and development potential.
Graham, who manages a portfolio for Rising Phoenix Capital, oversees around 16,000 net royalty acres in the Barnett Shale. This is part of a broader portfolio that spans various US basins.
For investors looking for managed opportunities in the energy sector, Rising Phoenix Capital’s La Plata Peak Fund is designed to provide monthly income and capital appreciation by targeting producing mineral assets with development upside across multiple basins.
Currently, Rising Phoenix Capital is accepting subscriptions for this fund, offering diversified mineral portfolios with immediate cash flow and long-term growth potential.
In a recent expansion of its portfolio, the company purchased mineral interests in the Midland Basin managed by ConocoPhillips.
