The 750p / share offer implies an equity value of US$2.7bn (£1.7bn) for the net 46.1% interest – a net EV of US$1.8bn, given Dragon Oil's net cash position. Dragon Oil's core production asset is the offshore Cheleken Contract Area in Turkmenistan, where the targeted output of 100,000 b/d has been reached. The rest of the company's portfolio consists of exploration projects across six countries. We only value the Turkmen asset. We value the 46.1% stake at US$2.2bn (NPV10, 1 January 2015).