RE:New Gas Processing Plant CostThat is not an unrealistic valuation for the gas processing plant.
Its current life span is about 20 years.
Operating margins are nearly 70 %.
Cash flows are totally unencumbered........no need to explore and add replacement reserves.
Here's a simple fact
The average oil / gas producer spends about 65% of its unencumbered cash flows just to replace losses from production.
That is, RPT would have to be producing about 18 mmcfd of gas ( about 3000 boepd ) just to match the final free cash flow generated by the gas plant ($5.5 million per year).