rumours..

While browsing a UK stock forum earlier today on the Pantheon thread I found a brief reference to a takeover rumour doing the rounds. The poster was referring to 'speculation' on a US forum which suggests the project vendor is keen to buy out all the other JV members. That comment rang a bell so I dug out the 'Speculator' (Hasselhoff) story of early September; I recall him making similar comments. Here's what he said:

"Is the Bullseye operator a potential target?
I hear there is speculation in the US that a hedge fund maybe considering a plunge on operator Golden Gate Petroleum.
There is nothing apparent at this stage to substantiate this speculation but, the said fund — New York-based Eastern Advisors — already holds a 20% interest in the drilling syndicate PLUS a 17 percent holding in GGP.
According to the chatter, if the forthcoming flow tests confirm the log-test estimates, a bid in the vicinity of 70c a share for GGP could eventuate. GGP closed last week at 39.5c. Such a speculative bid would most likely be expected before the planned spudding of a second, deeper, well to test the so-far untapped Cib Haz sands below the most recent well."

I'd rate 70c as opportunistic, and I'd certainly not sell into a takeover before the J-2 well had produced a definite outcome. If they are keen to buy up the JV before the Cib Haz test they must be pretty confident that it has the goods.