N. Malone Mitchell 3rd of The Mitchell Group and Jack Nichols of Redhawk Investment Group have formed Redhawk Minerals Fund I LP, a $58,000,000 mineral rights acquisition offering. The partnership management is designed to acquire, own and administer mineral interests in the STACK (Sooner Trend, Anadarko basin, Canadian and Kingfisher counties) area in the Anadarko Basin in central Oklahoma. Both companies are headquartered in Dallas, Texas.
Mineral rights ownership, as an asset category, is a lesser known form of investment vehicle more commonly found in institutional type offerings. This offering allows qualified private individuals to gain direct entry into mineral rights ownership. As drilling and production occur, mineral rights ownership can provide the opportunity for the owner to receive up-front, lump-sum bonus premiums to lease plus royalty payments, ranging anywhere from 12.5%-25% of the gross revenues from producing properties.