The UK Government is said to be exploring claims on the sea floor of its island territories, in the hope they will yield an abundance of black gold.

The Daily Telegraph claims Britain is staking out claims as far as 450 nautical miles around colonies, in the expectation of striking oil, gas and mineral wealth.

The Telegraph claims the UK has filed with the UN's Commission on the Limits of the Continental Shelf, requesting an extension of its territorial waters around Ascension, St. Helena and Tristan da Cunha.

The UN submission states the UK is providing information on the limits of shelf "beyond 200 nautical miles", and that there will be further requests.

But a Foreign Office spokesman told The Telegraph this was to "protect the environment".

According to the Law of the Sea, countries can claim the surrounding 200 miles of an island's waters but this can be extended to 350 miles if the geology meets certain technical conditions.

The Telegraph says Bermuda is also being considered, along with the Cayman Islands, British Virgin Islands, Turks and Caicos and Montserrat.

The deadline to stake claims is May 2009.

Bermuda gained sovereignty over its Exclusive Economic Zone in 1996 — extending the Island's borders from 21 to 256,000 square miles.

As a British Overseas Territory, anything found on the seabed belongs to Queen Elizabeth II as head of state but would be managed by the Bermuda Government.

The big question is that with the world's supply of oil expected to run out in 2035, could black gold in the Atlantic solve Bermuda's energy woes? The Island is held ransom to soaring oil costs — resulting in rising food prices and the cost of living.

On Thursday, global oil prices hit $135 a barrel — more than double the $65 of a year ago, and some experts say it could soon reach $200 a barrel.

According to explorer Nick Hutchings, however, the likelihood of finding crude oil in Bermuda's waters is slim.

What the seabed may have instead though is a wealth of precious minerals including diamonds, gold, platinum and uranium.

Mr. Hutchings said: "Although the Falkland Islands have proven reserves of oil and natural gas, I don't think there is oil off Bermuda. However, I do think there's other valuable mineral resources.

"Bermuda sits on a basement rise out of which a volcano has emerged. It's a huge area.

"I think Bermuda would have a claim to extend its sovereign rights of the EEZ but the UK Government would have to make that claim for us.

"I think this would be worthwhile, as deep sea mining is a growing industry, something which will be coming to the forefront in the next five years or so.

"Not only are there minerals but also genetic resource — chemicals produced by certain marine organisms which may have certain pharmaceutical benefits.

"It is a huge industry and is a potential valuable resource for Bermuda."

Mr. Hutchings added that as well as pharmaceutical riches, the gas hydrates in the Island's waters could also prove lucrative.

"I'm positive that Bermuda would have large reserves of consolidated methane in the sedimentary layers in the seabed," he said.

As chairman of Ocean Projects Ltd., Mr. Hutchings has an exploration licence with Government for exclusive rights to negotiate for mining lease.

His team is currently exploring the Island's potential for mineral riches and hopes to draw a detailed map of Bermuda's waters, to identify topographical features for further ROV (Remotely Operated Vehicle) exploration.

"The project is going very well," said Mr. Hutchings. "We've had very positive results from our latest samples at the laboratory and so this is very encouraging.

"We certainly have indications that there is a high grade ore on the side of the Bermuda seamount, in the titanium-rich and ferro-manganese crust."