The company which operates the first oil refinery in Papua New Guinea has seen its stockmarket value plunge by as much as 40 per cent.
Bloomberg news reports Interoil shares have fallen US$8.8 to US$18.2 in trading today on the Toronto stock exchange.
The company has abandoned drilling at the second in a series of eight exploration wells.
It's the biggest one-day drop for Interoil shares in Canada and took about US$257 million off the company's market value.
The company's chief executive, Phil Mulacek, wasn't available for comment.