Monday, June 16, 2008
SADR oil deal boosts company's stock
Investors can make or lose fortunes on the results of one stock bet, and in at least one case they're betting on Western Sahara. Tower Resources, a British oil exploration company, experienced a bump in its stock price after announcing it had acquired a license to explore for oil off Western Sahara's coast. Unlike other companies, though, Tower's deal is different: its deal is with SADR, so it can only explore once Western Sahara is independent.
Tower obtained the license by buying Comet, which previously held the license. I would've thought the SADR license wouldn't have had a great effect on Tower's stock, given the seemingly-remote chances for Western Saharan independence any time soon. Apparently stock buyers feel more optimistic. It's heartening to see people who are probably more interested in profits than self-determination placing money on independence.