UK Oil Firm Union Jack Turns to Bitcoin Mining with Gas

Union Jack Oil Enters Bitcoin Mining

Union Jack Oil, a publicly listed UK energy company, is venturing into Bitcoin mining. The company intends to utilize natural gas extracted from its West Newton site to generate electricity, which will then power Bitcoin mining operations. This initiative could establish one of the UK's first “oil-to-crypto” monetization ventures.

According to an operations report released Thursday, this move aims to generate early revenue from wells that have remained largely untapped due to regulatory delays.

The project is a collaborative effort with Rathlin Energy and 360 Energy, a Texas-based company specializing in converting stranded gas into power solutions for on-site data centers.

Project Details

A non-binding letter of intent outlines the companies' plans to deploy 360 Energy’s In-Field Computing technology for direct Bitcoin mining at the West Newton A site, contingent upon regulatory approval.

Executive Chairman David Bramhill suggested that a successful implementation of this project might lead Union Jack to adopt a new Bitcoin Treasury strategy.

West Newton: Awaiting Development

Union Jack Oil acquired its stake in West Newton in 2019, after operator Rathlin Energy discovered gas at the location. Subsequent drilling indicated it to be one of the UK's largest onshore gas discoveries since 1973.

However, the site's development has been hindered by planning delays and regulatory uncertainties, impacting the construction of necessary infrastructure for gas delivery to the market.

Bramhill noted that regulatory uncertainty has slowed progress, affecting projects like West Newton despite their commercial potential. Union Jack aims to bypass these delays by using the gas on-site for Bitcoin mining, generating revenue independently of traditional development timelines.

“Onshore developers and producers have been forced to think outside the box to make progress and deliver growth,” said Bramhill. He described the proposed Bitcoin mining venture as “innovative” and offering “strong scope for a sustainable return.”

Broader Industry Trend

Union Jack Oil's initiative reflects a growing trend among energy companies to monetize underutilized resources. Many firms are exploring Bitcoin mining to leverage stranded or flared gas.

This model involves converting gas to electricity on-site and powering mining rigs, mitigating the costs and delays of grid connections or pipeline construction. Companies like 360 Energy and Crusoe are developing modular and scalable solutions for this approach.

Examples in Other Regions:

• In North Dakota, ConocoPhillips launched a pilot program supplying excess gas to Bitcoin miners.
• In Argentina, Tecpetrol began using leftover gas from drilling operations to power mining rigs.
• In Alberta, AgriFORCE launched an operation powering 120 Bitcoin mining rigs with stranded natural gas.