Main Points:
- Union Jack Oil to convert produced natural gas into power for on-site Bitcoin mining at West Newton
- Partnership with 360 Energy and Reabold Resources to deploy modular mining data centers
- 16.665% working interest secured in PEDL183, with project led by Rathlin Energy’s JV
- Potential for a corporate Bitcoin treasury strategy upon successful pilot
- Early cash flow before full field development, unlocking stranded gas value
- Environmental benefits: reduced flaring, lower CO₂ emissions
- Broader trend: natural-gas-powered crypto mining gaining traction in U.S. shale and oilfield services
1. Introduction
Union Jack Oil plc, a UK-listed oil and gas exploration and production company, announced on August 7, 2025, that it plans to harness natural gas from its West Newton discovery to power Bitcoin (BTC) mining operations. With the field’s estimated recoverable reserves at around 200 billion cubic feet, this initiative aims to transform what would otherwise be vented or flared gas into a revenue-generating asset. The pilot stage envisions a joint venture (JV) with partners including Texas-based 360 Energy and Reabold Resources, positioning Union Jack Oil at the forefront of an emerging intersection between traditional energy and blockchain technologies.
2. The West Newton Project
Union Jack Oil holds a 16.665% working interest in the PEDL183 license covering the West Newton A and B sites, co-developed through a JV chaired by Rathlin Energy. Rather than waiting for full-scale gas field development, the partners plan to deploy modular gas-to-power generators on-site, converting wellhead gas into electricity to mine Bitcoin. This “early monetization” model not only accelerates cash flow but also offers a testbed for a future corporate Bitcoin treasury strategy, pending regulatory approvals.
3. Partnership with 360 Energy and Reabold Resources
360 Energy brings its patented “In-Field Computing” technology, which captures flared or stranded gas and routes it to mobile data centers designed for cryptocurrency mining. Reabold Resources, another oil and gas player, has joined the JV, contributing additional working interests and local operational expertise. The non-binding memorandum of understanding with 360 Energy is expected to be formalized into a binding contract in the coming months, with engineering design, equipment procurement, and site preparation to follow regulatory clearance.
4. Technical and Environmental Considerations
Technically, the project requires integration of gas compressors, generator sets, and high-efficiency mining rigs capable of sustaining continuous operation in a remote field environment. From an environmental standpoint, deploying gas-powered miners reduces the volume of methane and CO₂ released through flaring, aligning with increasingly stringent carbon regulations. By converting an estimated 5 MMcf/day of gas, the initiative could avoid flaring that typically emits over 100 tons of CO₂ monthly.
(Insert Figure 2 here: Estimated Monthly CO₂ Reduction from Reduced Flaring (tons)
5. Economic Projections
Preliminary economic models indicate that directing gas revenue toward Bitcoin mining could yield “attractive returns” compared to conventional gas sales or flaring penalty avoidance. Assuming a gas-to-power conversion efficiency of 45% and average Bitcoin network difficulty, projected monthly revenues could start at approximately $200,000 in the first month and scale up as field production ramps. These cash flows can underpin operational costs, capex for additional rigs, and eventual treasury holdings of BTC.
(Insert Figure 1 here: Projected Monthly Revenue from BTC Mining ($K)
6. Broader Industry Trends
The West Newton pilot is part of a broader movement in which oilfield operators in the Permian Basin and U.S. shale plays are leveraging excess natural gas for data centers and cryptocurrency mining. Publicly traded miner MARA Holdings launched a pilot to generate 25 MW of power from shale gas, highlighting the drive to secure low-cost, stranded energy for mining or high-performance computing. In December 2024, Halliburton invested in 360 Energy, validating the model’s potential and unlocking partnerships between oilfield services and blockchain infrastructure.
7. Regulatory and Strategic Outlook
In the UK, onshore gas developments must secure permits for emissions and site operations. The JV expects to gain all necessary approvals from the Oil and Gas Authority and the Environment Agency by late 2025. Strategically, success could pave the way for Union Jack Oil to adopt a “Bitcoin Treasury” policy—allocating a portion of revenues directly into BTC holdings—mirroring trends among leading U.S. corporates such as MicroStrategy.
8. Conclusion
Union Jack Oil’s West Newton Bitcoin mining initiative exemplifies innovative asset monetization, merging traditional hydrocarbon resources with blockchain’s digital economy. By converting otherwise wasted gas into both sustainable energy use and digital currency tranches, the project promises early cash flows, environmental benefits, and a potential path to corporate treasury diversification. Should the pilot prove viable, Union Jack Oil could chart a course toward one of the UK’s first oil-backed Bitcoin treasury strategies, setting a benchmark for energy companies globally.
