Response to offer extension

Fusion Oil & Gas PLC
06 November 2003

                              Fusion Oil & Gas plc

                          ('Fusion' or 'the Company')


Fusion's Response to the Sterling Energy plc ('Sterling') Further Extension of
Offer Announcement

Fusion recommends shareholders continue to take no action

The Fusion board notes Sterling's announcement of earlier today, in which it
states it has further extended its Offer until 30 November 2003. Sterling has
received acceptances for only an additional 402,627 Fusion shares (representing
0.4% of the existing issued share capital of Fusion) since 23 October, the first
closing date for its Offer.

As a result, Sterling has now received acceptances in respect of approximately
46.9 per cent of the issued share capital of Fusion, as enlarged by the recent
conversion of Fusion Oil & Gas NL partly paid shares into 2,181,000 ordinary
shares in Fusion.

The Fusion board continues to believe that Sterling's Offer is both
opportunistic and undervalues the Company - a view reinforced by the excellent
production test results on the Chinguetti-4-5 well, the announcement that the
Chinguetti-4-6 Tiof exploration well is drilling ahead, and the conclusions of
the independent valuation report which were released on 31 October.

The Fusion board is continuing its discussions with other companies with a view
to securing a better deal for Shareholders.  These discussions involve the
evaluation of large quantities of technical data, which by its very nature is a
time consuming process. Therefore Shareholders who have not accepted Sterling's
Offer are strongly urged to continue to exercise patience by not taking any
action in respect of the Offer, thereby allowing these companies adequate time
to consider their position and the terms of any offer they may wish to make.


6 November 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]

Canaccord Capital (Europe) Ltd
Toby Hayward                            Tel:   [phone]
                                        Email: [e-mail]


The Directors of Fusion (other than Mr Williams and Mr Levison, who have not
participated in these deliberations on the Offer) accept responsibility for the
information contained in this announcement and to the best of their knowledge
and belief (having taken all reasonable care to ensure that such is the case),
the information contained in this announcement is in accordance with the facts
and does not omit anything likely to affect the import of such information.

Canaccord Capital (Europe) Limited ('Canaccord'), which is regulated in the
United Kingdom by the Financial Services Authority, is acting exclusively for
Fusion and is acting for no one else in connection with the Offer and  will not
be responsible to anyone other than Fusion for providing the protections
afforded to clients of Canaccord nor for giving advice in relation to the Offer.


                      This information is provided by RNS
            The company news service from the London Stock Exchange