Statement re Sterling Energy

Fusion Oil & Gas PLC
12 September 2003


                              Fusion Oil & Gas plc
                    ('Fusion' or 'the Company' or 'the Group')

                   Statement re: Sterling Energy plc ('Sterling')

The Board of Fusion notes today's statement by Sterling.  Fusion confirms that
it received an unsolicited all-share approach from Sterling which the Fusion
Board rejected on the grounds it significantly undervalued the Company.  No
formal offer has been received to date.

                                                               12 September 2003
Enquiries
Fusion Oil & Gas plc
Alan Stein, Managing Director          Tel:   [phone] (today)
                                       Email: [e-mail]

College Hill Associates                Tel:   [phone]
                                       Fax:   [phone]
James Henderson                        Email: [e-mail]
Phil Wilson-Brown                      Email: [e-mail]

Canaccord Capital (Europe)
Toby Hayward                           Tel:   [phone]
                                       Email: [e-mail]


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