Second this week is InterOil (NYSE: IOC ) , up 14% to $77.68. Interoil is the developer of the massive Elk and Antelope natural gas fields in Papua New Guinea and has an LNG export facility to go along with it. In November, the government of Papua New Guinea announced that it would take a 50% stake in each of the oil fields, which should derisk the project somewhat. The company has been searching for partners to build its facilities and set a firm deadline of Feb. 28 for proposals. If the company can find a partner, and if the company can get its facilities built, there are huge opportunities to export natural gas to Asia. That's a lot of "ifs" for everything to work out, and short sellers have taken notice, with 12 million shares are currently sold short, or roughly 25% of the float. Investors should be careful.