Redhawk Investment Group Aligns with The Mitchell Group to Announce Redhawk Minerals Fund II, LP
DALLAS, March 22, 2018 /PRNewswire/ -- Jack Nichols of Redhawk Investment Group has announced the formation of Redhawk Minerals Fund II, LP, a $30,000,000 mineral rights offering. This strategic partnership with Malone Mitchell 3rd of The Mitchell Group will be a virtual mirror image of the highly successful Redhawk Minerals Fund I, LP, which closed to investors in February 2017.
The partnership between Nichols and Mitchell will select, acquire and manage mineral rights interests in the highly-productive STACK play (Sooner Trend, Anadarko Basin, Canadian and Kingfisher counties) in North Central Oklahoma. Targeted returns are anticipated in excess of a 25 percent internal rate of return (IRR) with an ROI in the 2.5-3.5X range. The holding period for the project is targeted at five years.
The fund, open to accredited investors only, is priced at $50,000 per unit, with a proposed ¼ unit investment minimum of $12,500 available for a limited time. Because of their higher yield and comparatively low risk, mineral investments are an excellent addition to a diverse portfolio.
The minerals acquisition committee, through Longfellow Energy (a Mitchell Group company), has more than 23 years of experience in selecting and valuing mineral properties. Fund managers will select, acquire and manage the mineral rights for Fund II while investing their own money right alongside other investors. These managers use an innovative and highly-focused process for acreage aggregation developed over years of successes in minerals acquisition, management and divestiture.
Mineral acreage is carefully targeted and purchased from just ahead of, and up to 36 months in front of, the drill bits of large operators in the STACK play, including Devon Energy,Alta Mesa Resources and Longfellow Energy. This method allows the partnership to acquire minerals at a lower cost, while enjoying significant financial benefits from the early production of super-productive, unconventional wells being drilled and completed in the area.
With break-even oil prices for wells in the STACK play in the $30 to $43 per bbl range, large operators in the area are vigorously drilling ahead to maximize production revenue and hold acreage.
When working with Redhawk, owning mineral rights affords a handsome opportunity for the independent-minded, non-technical, non-super-rich accredited investor. Minerals acquired and managed by the Redhawk team can create significant near-term cash flow, which includes an upfront cash lease bonus and subsequent royalty payments after production begins.
The mineral owner pays nothing to drill (no dry hole exposure) or operate the wells and receives lease bonuses per acre, up-front, in the form of a check. In addition, investors receive royalty checks -- typically 20 percent of gross production revenues.
For interested investors working with the right partner, such as Redhawk, the acquisition and owning of mineral rights does not have to be difficult, and can be financially rewarding. Investors can enjoy the profits of mineral investments without the worry of navigating the ins and outs of acquiring and ultimately divesting the mineral rights.
Interested investors should visit https://www.redhawkinvestmentgroup.com/projectpreview.html to learn more about Fund II and be added to the investor waitlist.
About Redhawk Investment Group
Redhawk Investment Group forms partnerships to create, develop, manage and oversee investments in oil, minerals, natural gas and real estate. We are a partnership comprised of two successful oil, minerals, energy and real estate companies.
SOURCE Redhawk Investment Group
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