Union Jack Oil, a UK-listed onshore oil and gas company, is exploring a bold move into crypto mining by powering Bitcoin operations directly from natural gas produced at its West Newton site. The company announced it has signed a non-binding letter of intent with Texas-based 360 Energy to deploy mining infrastructure on-site.
The move is part of a joint venture with Reabold Resources and Rathlin Energy, the latter acting as operator of the West Newton field. The companies say the plan could offer a way to unlock near-term cash flow from the site, well before full-scale gas development begins.
Tapping Gas for Digital Gold
Under the proposal, natural gas from discovery wells at West Newton would fuel generators powering mobile data centers designed for Bitcoin mining. 360 Energy’s so-called In-Field Computing (IFC) technology would be deployed initially at the WNA-2 well site, with the potential for broader expansion across the field. The initial IFC unit is set to be installed at the West Newton A site, pending regulatory and third-party approvals. According to the joint venture, this strategy could generate near-term cash flow, ahead of any full-scale gas field development.
A feasibility study conducted by Rathlin concluded that this early monetization strategy could deliver “very attractive returns,” especially given that some of the gas wells might not otherwise contribute to long-term development plans.
“Cryptocurrency mining offers an innovative and significant near-term value-generating opportunity,” David Bramhill, Executive Chairman of Union Jack, said in a statement. He called the initiative a “positive update” that reflects the company’s creative approach to maximizing underutilized resources.
However, Bramhill also acknowledged that UK regulatory delays have been a challenge. Still, early indications of a more favorable stance toward onshore energy are encouraging, and the company sees this as a hybrid opportunity to fuse traditional energy practices with digital innovation.
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Still Early Days, but Momentum Builds
While the deal with 360 Energy remains non-binding for now, the joint venture partners are working toward a definitive agreement. Any rollout would still require regulatory and third-party approvals.
If the plan moves ahead, it would mark one of the first known attempts to integrate crypto mining into upstream energy operations in the UK, a trend more commonly seen in North America.
The shift also reflects a broader pattern in the energy sector, where companies are experimenting with off-grid mining solutions to monetize stranded or underutilized gas reserves.
Meanwhile, Union Jack holds a 16.665% stake in the West Newton PEDL183 license. With energy prices under pressure and crypto markets eyeing renewed momentum, the move could offer a timely hedge for the company’s future revenues.
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FAQs
Union Jack Oil plans to monetize unused natural gas by powering Bitcoin mining operations, creating early revenue before full gas field development at West Newton.
The hybrid model offers “very attractive returns” by generating cash flow from otherwise unused gas wells while awaiting full field development approvals.
Initial deployment at West Newton A awaits regulatory approvals, with potential expansion across the field if the non-binding agreement becomes finalized.
