Rising Phoenix Royalties Expands Strategy with First Non-Operated Working Interest Acquisition in the DJ Basin

DALLAS--(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.