Drilling Report

Fusion Oil & Gas PLC
22 May 2001

                             Fusion Oil & Gas plc

                         ('Fusion' or 'the Company')

          Fusion Oil & Gas plc Chinguetti-1 Drilling Progress Report

Fusion Oil & Gas plc reports the following progress with the drilling of its
Chinguetti-1 exploration well offshore Mauritania.

Further analysis of pressure data has confirmed the presence in the primary
objective of a gross oil column of 90 metres and that no oil/water contact has
been identified. Using a wireline sampling tool 4 oil samples were recovered
from the primary objective sandstones and three gas samples were recovered
from the secondary objective sandstones. These are currently being transported
for laboratory analysis.

Interpretation of the data obtained from the Chinguetti-1 well is ongoing.

As previously anticipated in our drilling progress report of the 8th of May
and in accordance with standard safety procedure the Chinguetti-1 exploration
well is in the process of being plugged and abandoned before the Scarabeo-7
rig moves directly to the Courbine-1 location. The Chinguetti-1 well is being
completed in such a way that it can be re-entered at a later date for further
testing if required.

The Chinguetti-1 well is located approximately 80 km from the coastline of
Mauritania in 800 m of water. The well lies within Production Sharing Contract
(PSC) Area B. Fusion's interest in PSC B is 6%.

The Courbine-1 well is also located in PSC B.

The Company has decided to issue routine weekly progress reports for this well
in view of a similar policy of disclosure to the Australian Stock Exchange
adopted by the Operator, Woodside Petroleum Ltd.

                                                                   22 May 2001

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