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UK-focused onshore hydrocarbon producer Union Jack Oil plc is exploring bitcoin mining powered by natural gas at its West Newton site and may adopt a corporate bitcoin treasury strategy if the initiative succeeds.
Onshore Gas to Bitcoin: Union Jack Advances Crypto Mining Venture
Union Jack (AIM: UJO), holding a 16.665% stake in license PEDL183, announced a feasibility study for using gas from existing West Newton discovery wells to generate on-site electricity dedicated to bitcoin mining operations. The project aims to create early monetization and cash flow ahead of a potential full-scale gas field development decision. Joint venture operator Rathlin Energy (UK) Ltd led the evaluation.
Rathlin, representing partners including Union Jack and Reabold Resources plc, signed a non-binding Letter of Intent (LOI) with Texas-based 360 Energy Inc. The agreement focuses on designing a bitcoin mining solution utilizing 360 Energy’s In-Field Computing (IFC) technology. This system would convert the site’s natural gas into electricity to power modular data centers for mining bitcoin, subject to regulatory and third-party approvals.
The initial phase targets deployment at the West Newton A site, using gas from the WNA-2 well. The venture partners view this as an innovative near-term value opportunity, leveraging gas volumes not immediately suitable for traditional development or early production schemes. Preliminary economic assessments indicate potentially attractive returns, though the project remains conceptual. The filing indicates that the parties aim to finalize a binding agreement based on the LOI terms.
Union Jack Executive Chairman David Bramhill highlighted the potential for “significant returns” and noted the initiative aligns with efforts to progress amid regulatory and planning challenges facing UK onshore projects. West Newton holds an estimated 200 billion cubic feet of gross recoverable gas resources. Bramhill stated success could lead the company to introduce a new bitcoin treasury strategy.
Corporate bitcoin treasury strategies, involving holding bitcoin as a reserve asset, have gained notable attention following the aggressive adoption by companies like Strategy (formerly Microstrategy). Union Jack’s potential move reflects a broader trend of businesses exploring bitcoin for treasury management, though its implementation depends entirely on the mining project’s success. Bramhill emphasized the venture complements Union Jack’s position as a profitable transatlantic oil and gas producer.