Union Jack Oil is betting that converting gas into Bitcoin hashrate could generate early cash flow from its West Newton field, where 200 billion cubic feet of gas remains untapped due to bureaucratic delays.
Summary
- Union Jack Oil plans to monetize stranded West Newton gas via Bitcoin mining, bypassing regulatory delays stalling traditional development.
- A non-binding deal with 360 Energy would use modular data centers to convert gas from the WNA-2 well into Bitcoin hashrate.
In an operations update issued August 7, publicly traded UK energy company Union Jack Oil announced a preliminary agreement between field operator Rathlin Energy and Texas-based 360 Energy to explore Bitcoin (BTC) mining at its West Newton gas field.
The non-binding deal would see the firms deploy modular data centers powered by stranded gas from the site’s WNA-2 well, circumventing the need for pipeline infrastructure. If approved, the pilot could expand across the field’s estimated 200 billion cubic feet of reserves, a volume currently trapped in regulatory limbo.
Can Bitcoin break West Newton’s regulatory logjam?
West Newton’s gas discovery was first announced in 2019 following successful drilling by operator Rathlin Energy. But despite holding billions of cubic feet of recoverable gas, the field remains undeveloped.
The delay is largely attributed to the UK’s fragmented onshore planning framework. While hydrocarbon licensing is issued by the North Sea Transition Authority, onshore drilling and production projects must also pass through a separate layer of local council-level approvals.
In the case of West Newton, planning applications have faced public opposition and procedural setbacks, leaving the joint venture in a prolonged holding pattern with no established path to market for its gas.
David Bramhill, Executive Chairman of Union Jack Oil, summarized the frustration: “Regulatory uncertainty has unduly hampered progress and planning challenges have tarnished somewhat the perception of a number of commercially attractive onshore projects, such as West Newton.”
The partnership with 360 Energy is designed to monetize gas that would otherwise remain stranded. By converting it into electricity for on-site mining, the joint venture could unlock revenue from wells deemed economically unviable under traditional development models.
“The relationship with 360 Energy has the potential to enable the Joint Venture partners to realise significant returns from natural gas volumes via wells that would not otherwise contribute to either the early production scheme or the full field development,” the company stated.
A Global Trend Gains Traction in the UK
Union Jack’s pivot mirrors a growing list of energy firms turning to Bitcoin mining as a financial release valve. In North Dakota, ConocoPhillips has diverted excess gas to mining operations rather than flaring it.
Argentina’s Tecpetrol began powering rigs with surplus drilling gas after environmental caps limited venting. And in Canada, AgriFORCE recently launched a 120-rig mining operation fueled by stranded Alberta gas.
If successful, the West Newton pilot could redefine how the UK approaches stalled energy assets. Bitcoin mining wouldn’t replace traditional gas development, but it could serve as a bridge, generating cash flow while regulators and developers navigate long-term plans.
