Caracal's asset base includes the onstream Mangara-Badila development, with estimated gross reserves of 110 mmbbl, and production of 16,500 b/d in 2014. Glencore already holds 35% of this development, and will increase its stake to 85%. The portfolio also extends over around 26,000km2 of exploration acreage. We value Caracal's commercial assets at US$1.1 billion, against a net consideration of US$1.6 billion. Our valuation excludes the Krim and Kibea fields, which we classify as technical.