Drilling Report

Fusion Oil & Gas PLC
03 September 2002

                             Fusion Oil & Gas plc



                          ('Fusion' or 'the Company')



                        Routine Drilling Progress Report



Woodside Mauritania Pty Ltd., Operator of the Mauritania PSC B Joint Venture,
reports that:


 'on 3 September a production test of the Chinguetti-4-2 step-out exploration
well had been completed over the first of two zones within the primary reservoir
interval.


The production test flowed at a maximum rate of 1,560 barrels of oil and 650
Mscf of gas per day through a 30/64 inch choke, constrained by sand production.


Sand inflow from reservoirs can be controlled.  In the case of development,
appropriately designed and completed production wells should be capable of
achieving significantly higher flow rates.


Current operations are recovering the test string and making preparations to
production test the second test zone.'


Fusion has a 6% interest in PSC B.


Alan Stein, Managing Director of Fusion, commented:


'Fusion is encouraged by these results.  Sand production from unconsolidated
reservoirs with similar porosity and permeability characteristics is a
relatively common occurrence worldwide and should not hamper efficient
production from the Chinguetti accumulation.  We look forward to receiving
additional information from the second test of this well and from the rest of
the drilling campaign. '


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


                                                             3 September 2002


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