Drilling Report

Fusion Oil & Gas PLC
19 August 2002



                              Fusion Oil & Gas plc



                          ('Fusion' or 'the Company')



               Chinguetti-4-2 Oil Discovery, Offshore Mauritania



Woodside Mauritania Pty Ltd., Operator of the Mauritania PSC B Joint Venture,
has today reported that a preliminary evaluation of wireline log data from the
Chinguetti-4-2 well indicates that the well has intersected several significant
oil-bearing sandstones in the primary objective over a gross hydrocarbon
interval of 94 metres within the well.



The logging and evaluation programme is continuing.  Following completion of the
logging programme a production test of the primary objective will be conducted.



The well, which is testing the previously undrilled northern side of the
Chinguetti structure, is approximately 2.5 km to the north of the 2001 discovery
well.  As such, Chinguetti-4-2 is considered to be a significant step out
exploration well which will improve understanding of the commercial potential of
the Chinguetti area.



Fusion has a 6% interest in PSC B



Alan Stein, Managing Director of Fusion, commented:



'This is an excellent start to our 2002 drilling campaign which further
underscores our confidence in the commercial value of Fusion's Mauritanian
assets and the petroleum potential of deepwater Northwest Africa.'



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



19 August 2002


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]
                                       Fax:   [phone]
                                       e-mail:  [e-mail]






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