A new oil firm set up by a North Sea veteran has been awarded two underground coal gasification licences.
Cluff Natural Resources (CNR), launched last year, said the licences covered two projects over 274 acres in Wales and Merseyside.
It will now look to get planning and environmental permits to develop the sites, it said.
Underground coal gasification involves ignition of the coal to release gases.
CNR said it would also inject carbon dioxide into the coal seams, meaning gas can be stored instead of being released into the atmosphere.
The company added it was continuing to evaluate a number of other oil, gas and mining investment opportunities.
CNR’s chairman and chief executive is Algy Cluff, who lived in the Huntly area for 20 years until the mid-1990s and was involved in the discovery of the Buchan field nearly 40 years ago while chief executive of CCP North Sea Associates.
He has been a key player in the global oil and gas and mining industries since 1971.
CNR joined the Alternative Investment Market last May, with a market capitalisation of £4.35million.
Mr Cluff said: “I am delighted to be able to announce the award of these licences which represent a low cost entry into underground coal gasification which is becoming a burgeoning industry.
“It is well known that coal seams extend into the offshore waters around the UK and, with proven technology now available to utilise this energy source, we intend to embark on the process by extracting gas from these coal seams.
“It is our intention to seek the necessary planning and environmental permits to advance the two projects to production.
“UCG has the potential to do much to address the UK’s future energy needs, avoids the use of fracking and enables the gas generated to be easily controlled by the supply of oxygen.”
He added: “I look forward to updating shareholders on the development of our first acquisition.
“These are the first of a series of projects we are looking to acquire.
“In line with our strategy, we remain in discussions regarding a number of suitable natural resource projects as we look to build a portfolio of highly prospective assets that we will look to develop and, in the process, generate considerable value for shareholders.”