Drilling Report

Fusion Oil & Gas PLC
23 September 2002







                              Fusion Oil & Gas plc



                          ('Fusion' or 'the Company')



                        Routine Drilling Progress Report



'Woodside Mauritania Pty Ltd., Operator of the Mauritania PSC A Joint Venture,
reports that on 22 September the Chinguetti-4-3 exploration well on the Banda
Prospect is currently concluding the running of wireline logs at total depth of
2609 metres.



Since the last report, the 121/4 inch hole was drilled to total depth of 2609
metres and acquisition of wireline logs has been undertaken.



A preliminary evaluation of the wireline log data indicates that the well has
intersected a number of hydrocarbon bearing sandstones in the primary objective
over a gross interval of 133 metres. This interval comprises a gross gas column
of 110 metres immediately overlying a gross oil column of 23 metres. Samples of
gas and oil have been recovered from both columns.



Following the completion of the logging programme this well will be plugged and
abandoned, as planned.



All reported depths are referenced to the rig rotary table.'



Fusion has a 3% interest in PSC A.



The forward plan is to move to the Chinguetti 4-4 location in PSC B, which is an
appraisal well on the downthrown block of the Chinguetti-1 discovery.



Alan Stein, Managing Director comments:



'Three consecutive exploration successes in the Tertiary is an excellent result.
The proximity of this accumulation to our earlier Chinguetti discoveries
improves the value per barrel of any development within the Greater Chinguetti
Area.



Further drilling will be required to determine the full extent of the discovery,
however our preliminary evaluation suggests that the accumulation could
potentially be developed economically on a stand alone basis and further
appraisal drilling appears to be warranted.'



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



23 September 2002


Enquiries:


Fusion Oil & Gas plc
Alan Stein, Managing Director        Tel:   [phone]
Australia                            Fax:   [phone]
                                     e-mail:  [e-mail]


Peter Dolan, Chairman                Tel:    [phone]
England                              Fax:   [phone]
                                     e-mail:  [e-mail]


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




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