Union Jack Oil, a USA and UK centered onshore hydrocarbon manufacturing, growth, exploration and funding firm, has supplied the next update on West Newton, together with preliminary plans for early monetisation of fuel manufacturing through a brand new cryptocurrency mining operation.
Union Jack holds a 16.665% working curiosity in PEDL183, that comes with the West Newton fuel discoveries and is operated on behalf of the Joint Enterprise companions by Rathlin Power (UK).
- Rathlin has performed a feasibility research and evaluated the potential for an early growth and monetisation technique, utilizing fuel to be produced from the prevailing discovery wells to generate on-site electrical energy to energy cryptocurrency mining actions
- Rathlin, on behalf of the Joint Enterprise partnership which additionally consists of Reabold Assets plc, has entered right into a non-binding Letter of Intent (“LOI“) with a Texas-based firm, 360 Power Inc. (“360 Power“) to design a Bitcoin mining resolution at West Newton, topic to regulatory and third-party approvals
- The Joint Enterprise companions imagine that cryptocurrency mining provides an modern and important near-term worth producing alternative, offering early manufacturing and money movement prematurely of any deliberate full fuel discipline growth choice
Union Jack Oil has introduced preliminary plans for early monetisation of fuel manufacturing at West Newtonthrough a brand new cryptocurrency mining operation
Map Supply: Union Jack Oil
Bitcoin Mining Analysis
Rathlin, together with its Joint Enterprise companions, has been evaluating methods of producing extra worth through early manufacturing schemes, forward of any longer-term full fuel discipline growth. Specifically, Rathlin has been taking a look at growth ideas that will co-locate gas-powered mills and cryptocurrency mining gear on the West Newton A and B websites, which might be fuelled by the pure fuel produced at these areas.
On behalf of the Joint Enterprise partnership, Rathlin has entered right into a non-binding LOI with 360 Power, a pure fuel offtake and monetisation supplier, headquartered in Austin, Texas, USA. Underneath the phrases of the LOI, each events will work to scope, design and topic to regulatory and third-party approvals, deploy 360 Power’s confirmed In-Discipline Computing (‘IFC’) know-how, designed to transform pure fuel produced at West Newton to energy on-site information centres, producing revenues from Bitcoin manufacturing. While at an early conceptual stage, preliminary financial estimates point out that cryptocurrency mining may ship very engaging returns.
The LOI envisages the IFC initially being deployed on the West Newton A web site, changing pure fuel from the WNA-2 effectively into Bitcoin, subsequently being expanded to embody different discoveries. The connection with 360 Power has the potential to allow the Joint Enterprise companions to understand important returns from pure fuel volumes through wells that will not in any other case contribute to both the early manufacturing scheme or the complete discipline growth.
The Joint Enterprise companions are working in the direction of coming into a binding definitive settlement with 360 Power that’s anticipated to be based mostly on the phrases outlined within the LOI.
About 360 Power
360 Power provides next-generation options for pure fuel offtake and monetisation within the hydrocarbon business. The proprietary IFC platform captures stranded, flared or uneconomic fuel and converts it to electrical energy for powering modular information centres on-site. 360 Power is on the forefront of integrating superior computing with conventional power manufacturing to assist mission partnerships to earn extra and flare much less.
David Bramhill, Govt Chairman of Union Jack, commented: ‘Alongside our Joint Enterprise companions, we’re delighted to supply a constructive update on the potential growth of a fuel monetisation and Bitcoin mining idea at West Newton. We proceed to imagine that this asset holds materials worth which may ultimately ship important volumes of onshore low-carbon gross sales fuel into the UK`s essential home pure fuel market.
‘West Newton is estimated to comprise gross recoverable 2C fuel assets of virtually 200 billion cubic toes, in accordance with an unbiased evaluation undertaken by RPS in 2022.
‘Regulatory uncertainty has unduly hampered progress and planning challenges have tarnished considerably the notion of numerous commercially engaging onshore initiatives, comparable to West Newton, nevertheless, we’re seeing some ‘inexperienced shoots’ showing on the horizon on this respect.
‘Onshore builders and producers have been pressured to ‘suppose outdoors the field’ to be able to make progress and ship progress. The Board of Union Jack believes this proposed idea to provide Bitcoin through mining operations is modern, provides sturdy scope for a sustainable return and may result in the Firm introducing a brand new Bitcoin Treasury technique, on success.
‘As well as, we imagine that 360 Power’s affiliation with West Newton is complementary to Union Jack’s place as a worthwhile, transatlantic oil and fuel enterprise with manufacturing in each the UK and USA.
‘I sit up for updating shareholders sooner or later.’
Supply: Union Jack Oil
