If approved, it could be one of the UK’s first oil-to-crypto mining projects.
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.
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.
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.
Read more on Coinpedia – Fintech & Cryptocurreny News Media| Crypto Guide
