Union Jack Oil to Use Stranded Gas for Bitcoin Mining

Union Jack Oil, a publicly traded UK energy company, is taking an unconventional step to unlock value from one of its key assets. 

Overview

The company has announced plans to convert natural gas from its West Newton site into electricity to power Bitcoin mining, potentially becoming one of the UK’s first

“oil-to-crypto”

projects.

The initiative, outlined in an operations update on Thursday, could generate early cash flow from wells that might otherwise sit idle. Instead of waiting for large-scale gas infrastructure to be built, Union Jack aims to tap its stranded resources now by turning them into digital assets.

“This is an innovative way to deliver growth and sustainable returns,”

said Executive Chairman David Bramhill.

“Onshore developers have had to think outside the box, and this is a great example of that.”

From Stranded Gas to Digital Assets

The project is being developed in partnership with Rathlin Energy, operator of the West Newton site, and Texas-based 360 Energy, a specialist in transforming stranded or flared gas into power for on-site data centres. Under a non-binding letter of intent, the companies plan to deploy 360 Energy’s In-Field Computing technology at West Newton A.

The system will convert the site’s natural gas into electricity, feeding directly into mobile Bitcoin mining rigs set up at the wellhead. If the plan receives regulatory approval, mining operations could start without the delays typically associated with traditional gas development. Union Jack has even hinted that a successful launch might lead to the company adopting a BTC Treasury strategy, where some of the mined crypto is held as part of its reserves.

West Newton itself is no small asset. Discovered by Rathlin Energy in 2019, it is among the largest onshore gas finds in the UK. However, progress has been hampered by planning delays, regulatory hurdles, and the slow process of building infrastructure to connect the field to the national grid.

“Regulatory uncertainty has unduly hampered progress,”

Bramhill explained, noting that the project has struggled against a

“perception problem”

despite its commercial potential. The Bitcoin mining approach offers a workaround—monetising the gas directly at the site without waiting for pipelines or grid connections.

A Global Shift in Energy Monetisation

Union Jack’s move is part of a broader trend in the energy industry. Around the world, oil and gas producers are exploring Bitcoin mining to monetise difficult or uneconomical resources to transport. Instead of flaring or venting excess gas—contributing to greenhouse gas emissions—companies are converting it into electricity on-site to run mining equipment.

The model offers several advantages. It reduces waste, can improve environmental performance, and creates a revenue stream that isn’t dependent on traditional energy markets. Modular, mobile mining units—like those offered by 360 Energy—make it easier to set up operations in remote or infrastructure-poor locations.

These projects show how energy companies are experimenting with new business models at the intersection of fossil fuels and digital assets. For Union Jack Oil, the West Newton plan could be a milestone for the company and the UK energy sector. If successful, it might pave the way for other operators to follow suit, using crypto mining to extract value from underutilised resources.

Bramhill said,

“This is about unlocking value now, not years later. By combining proven energy assets with cutting-edge technology, we can move forward despite the challenges.”

In a world where both the energy and cryptocurrency industries are under pressure to innovate, Union Jack’s oil-to-crypto venture could be a sign of things to come.