Operational Update

Fusion Oil & Gas PLC
05 December 2003

Fusion Oil & Gas plc

                             ('Fusion' or 'the Company')

                               Operational Update



The following statement relates to operational developments.



Premier Oil plc, issued the following statement earlier today in regard to
drilling activities in Mauritania PSC B:


'Poune Exploration Well


Following the successful oil and gas discovery in the C-4-6 Tiof exploration
well (Tiof-1), the Poune exploration well (Chinguetti 5-1 Poune) commenced
drilling on 16 November 2003. The well was targeting a Cretaceous reservoir, a
different target to the younger reservoirs found at Chinguetti and at Tiof. The
well was drilled to a total depth of 3,285 metres and wireline logs were run.
The logs show that the well has encountered no significant hydrocarbons in the
primary Cretaceous target, although minor hydrocarbon shows were found in
shallower Tertiary sandstones. The well will now be plugged and abandoned.



Tiof West



As a follow up to the Tiof-1 discovery, the Area B joint venture has now taken
the decision to extend the original exploration programme by drilling an
additional well, Tiof West, directly after the Poune well. Tiof West is a
step-out exploration well located approximately 8 km from Tiof-1. It will
further evaluate the extent and nature of the hydrocarbon accumulation in the
Tiof sand channel system.'



Participants in the Area B PSC are as follows:

Woodside Mauritania Pty Ltd (Operator)          35.0% (Operator)
AGIP Mauritania BV                              35.0%
Hardman Resources Ltd                           21.6%
Fusion Mauritania B Limited                      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 Fusion's current
interests from PSC A and PSC B.



                                                                05 December 2003

Enquiries

Fusion Oil & Gas plc
Alan Stein, Managing Director            Tel:       [phone]
                                         Fax:       [phone]
                                         Email:     [e-mail]
Peter Dolan, Chairman                    Tel:       [phone]
                                         Fax:       [phone]
                                         Email:     [e-mail]

College Hill Associates                  Tel:       [phone]
                                         Fax:       [phone]
James Henderson                          Email:     [e-mail]




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