"Levy believes that InterOil has made misstatements to investors and embarked on complex land deals—frivolously spending investor dollars, not to mention the robust marketing campaign used to continue to fool shareholders. Levy reiterates that the company has no proven or measurable reserves. The natural gas explorer’s key property in Papua New Guinea saw positive flow rates in the beginning, but these flow rates have since disappeared and any evidence of gas has become virtually non-existent. Levy notes that this is not uncommon for the territory, where flow rates appear robust, but end up being duds.
Additionally, despite InterOil’s claims to have applied for permits to further explore the land to uncover the gas, Levy’s firm contacted the key government agency in Papua New Guinea directly, confirming on two occasions that no such applications had been filed. Levy also noted that no less than six other energy companies have explored for gas on the same land and have since given up."
Anyone with half a brain has figured this one out. They have to get through the 40-F first. Then they hide behind the unsettling and unsatisfying PR's. Stock tanks and then maybe a new CEO and a new "story".