Price to Book < 1 , but I'd say book could safely be reduced by a third.
I think what they did was wrong, and they are clearly paying for it, and it looks like they will continue to pay. But I also think they probably weren't doing anything differently than any other oil company. Eventually once the dust starts to settle it will start to become clear. The offshore drilling industry is to blame. BP definitely deserves a share of the blame, but they should not be used as scape goats. I think due process and rational thinking will eventually take affect. It should really be a burden carried across the offshore drilling industry, which will almost certainly result in more expensive drilling regulations and higher gas prices.
A price to book this low for a company this well known will definitely catch the eye of most value investors. In the past I've often made speculative plays with derivatives and more often than not come up empty handed in the end. I think from now own I'm going to find ways to speculate that include equity. This would make a good speculative buy. Keep it as a very small portion of you portfolio if you want to try. If BP doesn't go bankrupt then you will almost certainly make near 100% return within a market cycle (approximately 4 years).
The news that BP assisted the Lockerbie bomber in exchange for lucrative drilling rights is a big red flag. Could be the tip of an ice berg. Practices this bad are likely the sign of a deeply rooted problem in the management of BP. Stay away from this one at least a few years.