SUBSTANTIAL new reserves of methane gas could be lying beneath the Merseyside region, an energy company has revealed.

IGas Energy has licences to extract the gas from onshore underground coal seams covering land from West Manchester to North Wales, including locations in south Liverpool and the Wirral.

The technique emerged in the US 15 years ago and methane gas reservoirs now provide 60% of national gas supplies.

IGas says pilot well heads at Doe Green, near Warrington, and Ellesmere Port could provide power for 1,200 homes and 50,000 homes, respectively.

Now the company has announced that it has identified “significant” underground reserves contained within shale that could extend across 300,000 acres.

A company spokesman said independent consultants are now auditing the reserves, which could be “substantial”.

In addition, IGas Energy has also released a revised Competent Person Report (CPR) which increases previous estimates of its existing reserves by as much as 7.5% in ‘mid-case’ estimates.

Andrew Austin, IGas Energy chief executive, said: “This continuing work on understanding the full potential of our acreage to deliver gas once again gives us greater confidence in the resources we hold.

“The potential of delivering shale gas is particularly exciting, as this sector has seen significant growth in North America and increased interest across continental Europe.

“The revised CPR also gives us greater confidence in the size of the resource and once again shows the value of the extensive data set we hold.”

Most extraction sites are estimated to have a 20-year lifetime.

Once drilling has been completed, the only visible sign of extraction is a well-head three or four feet high.