Union Jack Oil PLC (AIM:UJO, OTCQB:UJOGF) has updated on the West Newton gas discoveries, in Yorkshire, where the venture partners as now assessing early monetisation, via Bitcoin mining.
Project operator Rathlin Energy has completed a feasibility study evaluating early monetisation through on-site cryptocurrency mining.
The idea is to use natural gas from West Newton’s existing wells to generate electricity for Bitcoin mining operations.
A non-binding letter of intent has been signed with 360 Energy, a Texas-based provider of gas offtake and monetisation solutions.
Under the terms, 360 Energy’s In-Field Computing technology would convert gas from the WNA-2 well into electricity to power data centres.
Preliminary estimates indicate the concept could deliver attractive returns, Union Jack said. And, now, the West Newton partners are working toward a binding agreement with 360.
"Onshore developers and producers have been forced to 'think outside the box' in order to make progress and deliver growth,” said executive chair David Bramhill.
“The board of Union Jack believes this proposed concept to produce Bitcoin through mining operations is innovative, offers strong scope for a sustainable return and could lead to the company introducing a new Bitcoin Treasury strategy, on success.”
Bramhill added: “We continue to believe that this asset holds material value which could eventually deliver significant volumes of onshore low-carbon sales gas into the UK`s important domestic natural gas market.
"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; however, we are seeing some ‘green shoots’ appearing on the horizon in this respect.”