Determining Oil & Gas Valuations

How do valuations get set for oil and gas companies?  I ask because I’m seeing very fast-rising valuations in the junior and intermediate oil sector that I cover. I have seen junior oil producers valued at $200,000 per flowing barrel recently – more than triple the peer group average. Industry statistics concur. A December 24th report by Peters & Co., a Calgary-based securities firm that is an oil and gas boutique, showed that the average purchase/sale price for oil weighted production in Q4 2009 was $100,000 per flowing barrel.  This is up more than 50% from the Q3 valuation of just over…