UK Oil & Gas Firm To Mine Bitcoin At Hydrocarbon Site

Union Jack Oil (UJO), an onshore hydrocarbon production, development, exploration, and investment company with a focus on the U.S. and UK, intends to monetize gas production at a joint venture discovery site in East Yorkshire. This will be achieved through the establishment of a new bitcoin mining operation.

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The UK-listed firm announced that its joint venture, operated by Rathlin Energy, has entered into a non-binding agreement with 360 Energy, a Texas-based natural gas offtake and monetization provider. The agreement aims to deploy bitcoin mining infrastructure, particularly as regulatory delays hinder traditional development. A binding agreement is expected to follow under the same terms.

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Following a feasibility study, the proposed initiative would convert gas from existing wells into on-site electricity to power modular data centres for bitcoin mining, subject to regulatory and third-party approvals. The companies plan a phased rollout of this initiative.

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Union Jack stated that the joint venture partners see bitcoin mining as an innovative method for generating near-term value, offering early production and cash flow before full gas field development. The company added that initial economic estimates suggest this approach could yield "very attractive returns" from otherwise unused stranded or uneconomic natural gas wells. The site's recoverable gas has been independently assessed at nearly 200 billion cubic feet.