A COMPANY controlled by a group of Indonesian investors is set to take control of the exploration group Dragon Oil under the terms of a placing and open offer of over £50 million sterling announced yesterday.

Dragon is proposing, subject to shareholder agreement, to place 2.5 billion new shares at 1 1/2p sterling with the Indonesian group to raise £37.5 million.

At the same time, Dragon is offering existing shareholders the option to buy two new Dragon shares at 1 1/2p for every existing ordinary share to raise a further £12.7 million.