Not to nit-pik but I don't see any discrepancy between that statement in the 10Q and the p/r's. Wasn't your point that there was a legal/facutal problem? I think they are OK legally but a real mess financially.
The other thing that really bothers me is an insider forgiving debt in order to improve the balance sheet. I suppose it was a survival choice but I would bet that the debt will reappear in some other form if this thing ever gets solid.
I'm with you on the release of a statement on production. Just hope the problem hasn't caused irreparable harm.