For those looking to walk away from the stock after averaging down and being grossly underwater, I understand completely your wanting to walk away and sell for a rather large loss. However, if I were you, I'd recommend the following (only FWIW; discard my comments if you don't find them helpful):
1. Call the company and talk to Greg Dangler or Damon Barber; ask them hard questions and do not settle for little or no information:
Greg Dangler – VP Finance
1401 17th Street, Suite 1550
Denver, CO 80202
Tel - 303 990 8444
2. Consider that if you have lost nearly 70% of your initial investment, walking away now cements that loss, which is a tough blow. If good news comes out, your investment will be no loss at all and may even turn into a profit, and if bad news comes out your 70% loss may turn into an 80% loss. Isn't it worth waiting for news? If you're already down 70%, what's being down another 10% when the upside possibility would wipe out all your losses and likely provide you gains?
3. Karlsson doesn't want Prospect to fail. Period.
I write this for the sake of those underwater (which I am too!) because I would hate to see you walk away now only to have us receive huge news of restructuring within a month or two. Again, FWIW. These are my thoughts and the lens through which I am looking as I consider what to do myself.