Rising Phoenix Royalties (RPR) has closed a deal for working interests in proved developed producing property in Weld, Colorado, in the Denver-Julesburg (D-J) Basin. The seller of the interests and financial terms weren’t disclosed.

The D-J Basin deal marks the minerals and royalties company’s first non-operated drilling acquisition, RPR said in a July 31 press release.

Sibling company Rising Phoenix Capital is set to capitalize on the company’s expansion into the oil and gas sector.

After launching its inaugural non-operated drilling fund in 2023, the company plans to launch a second non-op drilling fund later this year, RPR said. This acquisition in the D-J Basin could be allocated to this fund.

Non-op drilling funds offer “favorable” tax write-off of all intangible drilling costs, which ranges between 70% to 80% of the entire investment amount in the first year, according to Adam Lapucha, vice president of engineering at RPR.

“These non-op drilling funds provide investors with an opportunity to invest directly in the drilling of new wells,” Lapucha said. “This makes these types of investments extremely attractive for offsetting ordinary income gains an investor may have in the year.”

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