Drilling Report

Fusion Oil & Gas PLC
24 April 2001



                             Fusion Oil & Gas plc

                         ('Fusion' or 'the Company')

                    Chinguetti-1 Drilling Progress Report

Fusion is an international oil and gas exploration company, with extensive
interests in deepwater West Africa, comprising 9 licences across 7 countries.
The Company listed on AIM in September 2000 and has recently commenced the
drilling of its first exploration wells.


Fusion reports that its Chinguetti-1 deepwater exploration well is preparing
to drill 12-1/4' hole after setting 17-1/2' casing at a depth of 1677 metres.


The Chinguetti-1 well lies within PSC Area B and is located in a water depth
of 794 metres approximately 80 kilometres from the Mauritania coastline. The
drilling of the Courbine-1 deepwater exploration well, to be located in a
water depth of approximately 1220 metres, will commence following completion
of Chinguetti-1.


All reported depths (except water depth) are referenced to the rig rotary
table.


Fusion's interest in PSC Area B is 6.0%.

                                                                 24 April 2001

For further details please refer to the company's web page
www.fusionoil.com.au or contact:

Fusion Oil & Gas plc            Tel      [phone]
Level 2 Scott House             Fax     [phone]
46 Kings Park Rd                e-mail [e-mail]
West Perth 6005
Western Australia
Alan Stein                      Managing Director
Jonathan Taylor                 Exploration Director

Fusion Oil & Gas plc            Tel     [phone]
8 Old Lodge Place               Fax     [phone]
St. Margarets                   e -mail [e-mail]
Twickenham
Middlesex
TW1 1RQ
United Kingdom
Peter Dolan                     Chairman

College Hill Associates         Tel.     [phone]
78 Cannon Street                Fax.     [phone]
London EC4N 6HH                 e-mail [e-mail]
Peter Brookes