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).