Union Jack Oil Targets Bitcoin Mining with Natural Gas Conversion from Development Delayed West Newton Site
Union Jack Oil, a publicly traded UK energy company, has announced plans to convert natural gas from its undeveloped West Newton site to generate electricity specifically for Bitcoin mining operations. This marks a potential first “oil-to-crypto” monetization project within the United Kingdom.
Announced on Thursday in an operations report, the initiative aims to produce early cash flow from assets that have faced delays. The project is being pursued through a non-binding letter of intent with co-owner Rathlin Energy and Texas-based 360 Energy, a specialist in converting stranded or flared gas into power for on-site data centers.
The planned deployment of 360’s In-Field Computing technology at the West Newton A site would allow Bitcoin mining to commence directly on location. Union Jack’s Executive Chairman, David Bramhill, suggested this might lead to the introduction of a “new Bitcoin Treasury strategy” for the company if the project is successful.
West Newton: A Significant Discovery Hindered by Regulatory Roadblocks
Union Jack Oil acquired its stake in the West Newton gas field in 2019, following Rathlin Energy’s discovery of gas there. Subsequent drilling identified it as one of the largest onshore gas discoveries in the UK.
Despite its scale, development remains on hold primarily due to planning delays and regulatory uncertainty. These factors have impeded the construction of necessary infrastructure to market the gas.
“Regulatory uncertainty has unduly hampered progress,” Bramhill stated. He noted that potential monetization paths like this crypto-focused solution should be explored, even if comprehensive grid connections to market remain elusive.
By utilizing gas-to-electricity on-site for Bitcoin mining, Union Jack aims to achieve revenue generation without dependence on protracted traditional development and infrastructure approval processes.
“Onshore developers and producers have been forced to think outside the box to make progress and deliver growth,” noted Executive Chairman David Bramhill. He described the proposed Bitcoin mining venture as “innovative” and offering a “strong scope for a sustainable return.”
A Broader Trend: Energy Companies Eyeing Underutilized Resources for Crypto
Union Jack Oil’s initiative is part of a growing pattern where energy firms seek value from stranded or unused natural gas reserves and infrastructure.
The core strategy involves on-site gas-to-electricity conversion, bypassing lengthy grid connection procedures or costly pipeline projects. Companies are increasingly offering services to deploy modular computing equipment for this, including providers like 360 Energy.
This approach is gaining traction globally. ConocoPhillips trialled supplying excess gas directly to miners in North Dakota. Similarly, Argentina’s Tecpetrol addressed environmental limits by powering mining rigs with surplus gas. Furthermore, AgriFORCE in Canada launched a larger scale project in Alberta using stranded gas to power 120 mining rigs.
