Rumours that a bid is being considered for Gulfsands

Emerald Energy holds 50% of Block 26 in Syria. Gulfsands (AIM:GPX) holds the remaining half, and is the operator.

Tonight the Telegraph is suggesting that Gulfsands may also be subject of an approach, although some of the detail in the report looks a bit odd - for instance the partners operate far more than one well.

Talk that the Chinese are circling Gulfsands

http://www.telegraph.co.uk/finance/markets/marketreport/5872988/Talk-that-the-Chinese-are-circling-Gulfsands.html

And today the Guardian run a similar story, naming a price of 275p:

http://www.guardian.co.uk/business/marketforceslive/2009/jul/21/morrisons-j-sainsbury

Almost all of Gulfsands' value is in Syria (with a small amount in the Gulf of Mexico). On an equivalent fully diluted basis, 275p/GPX share would equate to about £5 per Emerald Energy share, just for their Syrian interests. Capella on its own ought to attract more than that sort of valuation (imho), and then add in more for Gigante and Campo Rico and await the results of the Mirto #1 well to see if more reserves can be declared there.