Operational Update

Fusion Oil & Gas PLC
21 October 2003


                              Fusion Oil & Gas plc

                          ('Fusion' or 'the Company')

                              Operational update


The following statement relates to operational developments:

Mauritania PSC-B: Block 4 (Chinguetti -4-5)

Woodside Mauritania Pty Ltd has issued the following statement in regard to
drilling activities on the Chinguetti Field:

'Woodside Mauritania Pty Ltd, Operator of the Mauritania Area B Joint Venture,
reports that at 00:00 hours on 21 October 2003 production testing operations
were continuing in the Chinguetti-4-5 combined appraisal and early development
well.

Since the last report the well has flowed oil to surface during the early stages
of the extended test programme as planned.

All reported times are UTC (also known as GMT)

Participants in the Area B PSC are as follows: Area B (Chinguetti)

Woodside Mauritania Pty Ltd                   35.0%

AGIP Mauritania BV                            35.0%

Hardman Resources Ltd                         21.6%

Fusion Mauritania B Ltd                       6.0%

Roc Oil (Mauritania) Company                  2.4%'



As previously announced on 28 May 2003, the Company has entered into an
agreement with Premier Oil plc regarding the disposal of its interests in
Mauritania.  Subject to fulfilment of certain conditions, Fusion will receive
cash payments linked to future production attributable to the current Fusion
interests in PSC A and PSC B.


AGC: Croix du Sud

Fusion has been advised that Amerada Hess ('Hess') intends not to proceed in the
Croix du Sud exploration licence in the Agence de Gestion et de Cooperation
entre le Guinee Bissau et le Senegal (AGC) Common Zone, a jointly administered
maritime border zone.

This decision by Hess was made in accordance with an option within the terms of
the farmout agreement negotiated between Hess and Fusion in August 2002.  Hess
has acquired and funded a 1,529 km2 3D seismic survey on behalf of the Croix du
Sud joint venture, and will assign its 68% interest in the licence, to Fusion,
at no cost.

Fusion's interest in the Croix du Sud licence will, as a result, increase to 88%
with the remaining 12% held by a corporation owned by the AGC.

The Company now intends to complete a detailed and thorough evaluation of the
extensive 3D seismic dataset before commencing discussions with interested
parties including companies that have previously expressed interest in this
acreage.

Fusion's Managing Director, Alan Stein commented:

'Fusion is pleased to note the Chinguetti-4-5 production test is proceeding as
planned, and anticipates announcing further details upon completion of flow
tests.

With regard to the Croix du Sud licence, based on the results of our own
preliminary evaluation of the recently delivered 3D seismic dataset, and with
the benefit of Fusion's regional experience in Northwest Africa, we believe the
prospectivity of this acreage has been materially enhanced, and we are therefore
confident of being able to secure alternative participants for the joint
venture.'


21 October 2003


Enquiries


Fusion Oil & Gas plc
Peter Dolan, Chairman                  Tel:       [phone]

                                       Email:   [e-mail]
Alan Stein, Managing Director          Tel:      [phone]

                                       Email:  [e-mail]

College Hill Associates                Tel:       [phone]
James Henderson                        Email:  [e-mail]
Phil Wilson-Brown                      Email:  [e-mail]


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