Drilling Report

Fusion Oil & Gas PLC
1 May 2001

                             Fusion Oil & Gas plc

                         ('Fusion' or 'the Company')


          Fusion Oil & Gas plc Chinguetti-1 Drilling Progress Report

Fusion Oil & Gas plc reports the following progress with the drilling of its
Chinguetti-1 exploration well offshore Mauritania.

As of the 1st of May the Chinguetti-1 exploration well has drilled to a depth
of 1785 metres in a 121/4 inch hole. Drilling has stopped while repairs are
made to the blow out preventer.

Hydrocarbon shows will only be reported after wireline logs have been run and
evaluated.

The Chinguetti-1 well is located approximately 80 km from the coastline of
Mauritania in 800 m of water. The well lies within Production Sharing Contract
(PSC) Area B. Fusion's interest in PSC B is 6%.


                                                                    1 May 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