The Governor says an expansion of the Island's territory is unlikely due to the specific geology of the Bermuda seabed.

International countries owning island territories have just one year to file claims to extend their borders with the UN — the deadline being May 2009.

The Law of the Sea states countries can claim the surrounding 200 miles of an island's waters but that this can be extended to 350 miles if the geology meets certain technical conditions. According to The Telegraph newspaper, Britain is now exploring claims on the waters surrounding its former colonies, in the hope that the seabeds may hold lucrative oil, gas and mineral wealth.

Some experts claim the Falkland Islands already have proven reserves of oil and natural gas. Desire Petroleum plans to start drilling this year, according to The Telegraph. The company has stated: "A working hydrocarbon system in the North Falkland Basin has been established."

The newspaper says the British Government has now filed papers 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 Telegraph says Britain is also considering other Atlantic islands such as Bermuda, the Cayman Islands, British Virgin Islands, Turks and Caicos, and Montserrat.

However, Bermuda's Governor Sir Richard Gozney told The Royal Gazette that the Island's geology would not support such an application.

"Unlike in the case of Ascension Island and possibly some other British islands, the morphology or shape of the seabed, and the geology of the seabed around Bermuda do not support an application for an expanded seabed for Bermuda under the UN Convention on the Law of the Sea," said Sir Richard.

Bermuda gained sovereignty over its Exclusive Economic Zone in 1996 — extending the borders of the British Overseas Territory from 21 to 200 miles.

Scientific experts do not believe there is oil in the seabed as it is not a continental shelf and is instead formed from tectonic plates. However, the volcanic activity which created Bermuda could yield rich mineral deposits.

Sir Richard said: "It may be worth reminding ourselves that without any new extension of the Island's rights, the existing rights of Bermuda under the Exclusive Economic Zone already stretch to over 120,000 square miles.

"Under the UN Convention on the Law of the Sea, rights to any resources within Bermuda's Exclusive Economic Zone would fall legally to the UK which would regard them as belonging to Bermuda."