Drilling Report

Fusion Oil & Gas PLC
8 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.

As of the 8th of May the Chinguetti-1 exploration well has drilled to a depth
of 1785 metres in a 121/4 inch hole. Repairs to equipment have been completed
and the marine riser and blowout preventers are being re-run prior to drilling
ahead in 121/4 inch hole.

Hydrocarbon shows will only be reported after wireline logs have been run and
evaluated. The current formation evaluation plan adopted by the Joint Venture
includes detailed fluid and pressure sampling during wireline logging.
Production testing, if warranted, will be undertaken as part of a fast-track
appraisal drilling campaign during 2002.

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 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.

                                                                    8 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