Enoc offer for Dragon criticised

Another minority shareholder in Irish-listed exploration firm, Dragon Oil has criticised the takeover offer from majority investor, Emirates National Oil Company (Enoc) as undervaluing the company.

London-based hedge fund manager, Elliott Advisors —which owns a 3.3% stake in Dragon — yesterday joined Scottish investment firm, Baillie Gifford and Dublin-based Setanta Asset Management (which, between them, control around 10% of Dragon) in suggesting Enoc’s recently improved 750p per share/€5.1bn offer for the 46% of Dragon Oil, it doesn’t already own doesn’t accurately value the asset.

Dragon this week reported a 25% year-on-year increase in first-half production, to just over 92,000 barrels of oil per day; but noted it breached the 100,000 mark in early June — an average level it hopes to sustain for the next five years.