cliffb: some of the microcaps are trading at hefty valuations relative to reserves, as you indicated. EDGE is much more reasonably priced, but of course it's a midcap, so more conservative metrics may apply. In the midcap arena among the cheapest plays on a reserves basis are ARD and SGY.
ARD has had a big run recently but still trades at a 10% discount to the PV10 of reserves as of 12/31/04 .... $302M reserves versus Mkt Cap of $273M.
SGY is also still trading at a deep 18% discount to PV10 of reserves as of 12/31/04, even though 60% of revenues are derived from gas. PE is also very low. I'm surprised the stock hasn't runnup more. PV10 of $1.9B versus Mkt Cap of $1.55B.