REG - Union Jack Oil PLC - Operations Update on West Newton PEDL183

Union Jack OilAnnouncement

07/08/2025 07:00

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RNS Number : 3140U  Union Jack Oil PLC  07 August 2025

7 August 2025

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.

 

Union Jack Oil plc

("Union Jack" or the "Company")

Operations Update on West Newton PEDL183

Early Monetisation Potential through Cryptocurrency Mining

 

Union Jack Oil plc (AIM: UJO, OTCQB: UJOGF), a USA and UK focused onshore
hydrocarbon production, development, exploration and investment company, is
pleased to provide the following update on West Newton, including initial
plans for early monetisation of gas production through a new cryptocurrency
mining operation.

Union Jack holds a 16.665% working interest in PEDL183, that incorporates the
West Newton gas discoveries and is operated on behalf of the Joint Venture
partners by Rathlin Energy (UK) Ltd ("Rathlin").

·    Rathlin has conducted a feasibility study and evaluated the potential
for an early development and monetisation strategy, using gas to be produced
from the existing discovery wells to generate on-site electricity to power
cryptocurrency mining activities

·    Rathlin, on behalf of the Joint Venture partnership which also
includes Reabold Resources plc, has entered into a non-binding Letter of
Intent ("LOI") with a Texas-based company, 360 Energy Inc. ("360 Energy") to
design a Bitcoin mining solution at West Newton, subject to regulatory and
third-party approvals

·    The Joint Venture partners believe that cryptocurrency mining offers
an innovative and significant near-term value generating opportunity,
providing early production and cash flow in advance of any planned full gas
field development decision

 

Bitcoin Mining Evaluation

Rathlin, along with its Joint Venture partners, has been evaluating ways of
generating additional value through early production schemes, ahead of any
longer-term full gas field development.  In particular, Rathlin has been
looking at development concepts that would co-locate gas-powered generators
and cryptocurrency mining equipment at the West Newton A and B sites, which
would be fuelled by the natural gas produced at those locations.

On behalf of the Joint Venture partnership, Rathlin has entered into a
non-binding LOI with 360 Energy, a natural gas offtake and monetisation
provider, headquartered in Austin, Texas, USA.  Under the terms of the LOI,
both parties will work to scope, design and subject to regulatory and
third-party approvals, deploy 360 Energy's proven In-Field Computing ("IFC")
technology, designed to convert natural gas produced at West Newton to power
on-site data centres, generating revenues from Bitcoin production.  Whilst at
an early conceptual stage, preliminary economic estimates indicate that
cryptocurrency mining could deliver very attractive returns.

The LOI envisages the IFC initially being deployed at the West Newton A site,
converting natural gas from the WNA-2 well into Bitcoin, subsequently being
expanded to encompass other discoveries.  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 Joint Venture partners are working towards entering a binding definitive
agreement with 360 Energy that is expected to be based on the terms outlined
in the LOI.

 

About 360 Energy

360 Energy provides next-generation solutions for natural gas offtake and
monetisation in the hydrocarbon industry.  The proprietary IFC platform
captures stranded, flared or uneconomic gas and converts it to electricity for
powering modular data centres on-site.  360 Energy is at the forefront of
integrating advanced computing with traditional energy production to help
project partnerships to earn more and flare less.

 

David Bramhill, Executive Chairman of Union Jack, commented: "Alongside our
Joint Venture partners, we are delighted to offer a positive update on the
possible development of a gas monetisation and Bitcoin mining concept at West
Newton. 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.

"West Newton is estimated to contain gross recoverable 2C gas resources of
almost 200 billion cubic feet, according to an independent assessment
undertaken by RPS in 2022.

"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.

"Onshore developers and producers have been forced to "think outside the box"
in order to make progress and deliver growth.  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.

"In addition, we believe that 360 Energy's association with West Newton is
complementary to Union Jack's position as a profitable, transatlantic oil and
gas business with production in both the UK and USA.

"I look forward to updating shareholders in the future."

 

 

For further information, please contact:

Union Jack Oil
plc
info@unionjackoil.com (mailto:info@unionjackoil.com)

David Bramhill

 

SP Angel Corporate Finance
LLP
+44 (0)20 3470 0470

Nominated Adviser and Joint Broker

Matthew Johnson

Richard Hail

Jen Clarke

 

Zeus Capital
Limited
   + 44 (0)20 3829 5000

Joint Broker

Antonio Bossi

Simon Johnson

James
Hornigold

 

Gneiss Energy
Limited
   + 44 (0)20 3983 9263

Financial Adviser

Jon Fitzpatrick

Paul Weidman

 

Harbour
Access
       +1 (475) 477 9402

USA Investor Relations

Jonathan Paterson

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