Montego Minerals Coyote Plains Properties Lawsuit Investigation and Investor Claims
The White Law Group is investigating potential claims involving Coyote Plains Properties LLC, an oil and gas royalty offering sponsored by Montego Minerals of Midland, Texas. Trade press reports the $18 million offering filled in 29 days in 2025. Below is what the SEC filing shows and what investors considering a lawsuit or FINRA arbitration claim should know.
What Is Coyote Plains Properties LLC?
Coyote Plains Properties LLC is a Texas limited liability company formed in 2025 at 15 Smith Road in Midland. AltsWire reported that Coyote Plains is Montego Minerals’ 26th portfolio and identified Cutler Gist as Montego’s owner and managing member.
According to trade press, the portfolio holds mineral and royalty interests across about 29,262 gross acres in 16 Texas counties. It covers 40 properties run by six operators, including Diamondback, Exxon and EOG. Operators pay drilling and operating costs, and Montego Asset Management collects royalties and pays investors monthly.
Coyote Plains Properties Offering Terms
The Form D, filed in May 2025, reports these terms:
- Exemption: Rule 506(c) of Regulation D
- Securities offered: mineral property securities
- Total offering: $19,242,105
- Selling firm: Realta Equities, Inc., authorized in all states
- Estimated sales commissions: $1,539,368
- Estimated payments to insiders: $577,263
The filing explains that the selling group can earn up to 6% in commissions and the managing broker-dealer up to 2%. On top of that, 3% of the amount sold goes to the parent company as an acquisition fee. Together, that is about 11% of every dollar invested. The portfolio was purportedly fully funded by August 2025.
Broker Due Diligence Obligations
A firm selling a mineral royalty offering must investigate it first. That includes how the sponsor priced the mineral interests, how much production is already flowing, how sensitive royalties are to oil and gas prices, and how fees affect returns. Brokers must also decide whether an illiquid energy investment fits each customer’s age, finances and need for cash.
Risks of Oil and Gas Royalty Investments
Royalty income rises and falls with oil and gas prices and with how much the operators decide to drill. Wells decline over time, and planned wells may never be drilled. Interests in a private LLC like this one have no public market, so investors may not be able to sell when they want to.
Recovering Coyote Plains Properties Losses
If a broker recommended Coyote Plains Properties without explaining its risks and fees, or it did not fit your situation, you may be able to recover losses. Brokerage firms are responsible for their brokers’ recommendations and for vetting the products they sell. These claims are usually brought through FINRA arbitration.
Contact The White Law Group
The White Law Group is a national securities fraud and investment loss recovery law firm with offices in Chicago and Seattle. If you invested in Coyote Plains Properties LLC or another Montego Minerals offering, call (888) 637-5510 for a free consultation, or contact us online.
Frequently Asked Questions
How do I file a claim to recover money I invested in Coyote Plains Properties?
You file a claim against the brokerage firm that recommended the investment. Most brokerage account agreements typically include a pre-dispute arbitration clause, so these claims usually go to FINRA arbitration instead of court. Arbitration can still result in a money recovery.
Are oil and gas royalty investments risky for investors?
Yes, they can be. Royalty payments depend on energy prices and drilling activity, both of which the investor cannot control. These interests are also hard to sell, so investors may be locked in even if income drops.
Can the brokerage firm that sold me this investment be held responsible for my losses?
Yes, a brokerage firm can be liable if its broker made an unsuitable recommendation or the firm failed to investigate the offering. Firms also have a duty to supervise how their brokers sell private placements. That includes explaining fees that can take about 11% of an investor’s money up front.
