Cameroon Deep Water Licence

Fusion Oil & Gas PLC
19 March 2001



                             Fusion Oil & Gas plc

                         ('Fusion' or 'the Company')

Fusion Signs New Deepwater Oil Exploration Licence in West Africa

Fusion is an international oil and gas exploration company, with extensive
interests in deepwater West Africa, comprising 9 licences across 7 countries.
The Company listed on AIM in September 2000 and will be drilling its first
exploration wells in April.

Fusion today announces that the company has signed a Petroleum Concession
Contract with the Republic of Cameroon. The contract relates to a deepwater
area to be designated the Ntem permit, which covers an area of 2080 square
kilometres. Water depths in the permit area range from less than 1000 metres
to in excess of 1800 metres. Fusion has been awarded this permit as a result
of an application made during a competitive bidding round that closed on 30th
June 2000.


Fusion's equity in the petroleum contract is 100%. The contract has three
exploration terms, with each term having a duration of two years. Fusion will
be acquiring 2D and possibly 3D data over the permit area in the first term to
evaluate several prospective features, some with possible direct hydrocarbon
indicators that have already been identified on existing seismic data.


The permit is situated in the Southern Douala/Kribi-Campo deep offshore basin
and lies adjacent to the northern border of Equatorial Guinea territory of Rio
Muni. This basin has recently been the focus of considerable industry
attention following the 1999 discovery of the deepwater Ceiba field, offshore
Rio Muni. The Ceiba field is located 100 kilometres south of the permit area
in water depths of 700 metres. Production from Ceiba commenced in 2001, some
14 months after discovery, with a current production rate of 40,000 barrels
per day. Reserves for the Ceiba field are estimated in excess of 500 million
barrels.


Industry activity is high in licences surrounding the permit area. The
operator of the Ceiba field, Triton Energy Ltd, recently announced a farmin to
the Block L deepwater licence, operated by US Major ChevronTexaco, which lies
between the Ceiba field and the Fusion permit area. Exploration drilling in
Block L is scheduled to commence prior to end 2002. In addition, a 3D dataset
is currently being acquired adjacent to the permit area boundary in the
Perenco/ExxonMobil Ebodje permit.


                                                                 19 March 2001




Maps of the permit area are available on the Fusion web site
(www.fusionoil.com.au) or by request from Fusion or College hill at the
addresses below.


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