- UK oil company partners with Texas firm to convert natural gas into Bitcoin.
- West Newton gas field contains an estimated 200 billion cubic feet of recoverable resources.
- The firm’s early monetization strategy bypasses traditional full-field development.
Union Jack Oil has announced plans to establish a Bitcoin mining operation powered by natural gas from its West Newton discovery wells in the UK. The company holds a 16.665% working interest in PEDL183 and has partnered with Texas-based 360 Energy Inc. to implement the cryptocurrency mining solution.
The approach aims to generate early cash flow from gas production before any full field development decision. Union Jack’s Executive Chairman David Bramhill described the concept as thinking “outside the box” to deliver growth amid regulatory challenges facing onshore UK energy projects.
360 Energy’s In-Field Computing Technology Converts Gas to Bitcoin
The partnership involves 360 Energy’s proven In-Field Computing platform that captures natural gas and converts it to electricity for powering modular data centers on-site. The technology targets stranded, flared, or uneconomic gas that would otherwise provide limited value.
Initial deployment will occur at the West Newton A site, converting natural gas from the WNA-2 well directly into Bitcoin through mining operations. The project could subsequently expand to encompass additional discoveries within the license area.
A non-binding Letter of Intent has been signed between the Joint Venture partners, including Reabold Resources, and 360 Energy. The agreement outlines terms for designing and implementing the Bitcoin mining solution, subject to regulatory and third-party approvals.
Material Gas Resources Support Long-Term Mining Strategy
According to an independent 2022 evaluation by RPS, West Newton has about 200 billion cubic feet of gross recoverable 2C gas resources. There is enough energy in this resource base to support sustained bitcoin mining operations.
The Joint Venture partners are in negotiations with 360 Energy for a binding definitive agreement on the Letter of Intent template. Initial estimates indicate that cryptocurrency mining can offer competitive yields compared to traditional gas monetization schemes.
Bramhill further added that regulatory uncertainty has been holding back the progression of economically viable onshore projects like West Newton. The Bitcoin mining concept is a method of generating value differently, as it addresses planning problems that have affected the image of projects.
Business Considers Bitcoin Treasury Strategy
Union Jack Oil believes that if the initiative proves successful, it could pave the way for adopting a Bitcoin treasury strategy, mirroring the trend seen in other corporate sectors. The strategy would be supplementary to the group’s current transatlantic oil and gas operations in both the UK and the USA.
The company would be generating Bitcoin from natural gas production itself, creating cryptocurrency ownership instead of market purchases made through cash transactions.
Related: Bitcoin Rebounds Above $116K After Investors Buy 120K BTC on the Dip
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