Drilling Report

Fusion Oil & Gas PLC
11 May 2001





                             Fusion Oil & Gas plc

                         ('Fusion' or 'the Company')

                Fusion commences drilling operations in Ghana



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 has recently commenced the
drilling of its first exploration wells.


Fusion reports that it has commenced drilling of its operated Fusion-1X
onshore exploration well in the North Tano Exploration Licence in western
Ghana.


Fusion has mobilised a 'Skytop Brewster RR-600' drilling unit from Europe for
this operation.


The Fusion-1X well is located north of the settlement of Tikobo in the Western
Region of Ghana, which adjoins the border with Cote d'Ivoire. The exploration
well is targeting a seismic-defined structural prospect that lies adjacent to
an area of natural oil and gas seeps and earlier shallow wells that
encountered pervasive hydrocarbon shows. The principle reservoir objective is
the Lower Cretaceous Kobnaswaso formation.


Fusion has equity of 90 per cent in this licence, with a 10 per cent interest
held by the Ghana National Petroleum Corporation (GNPC).


Fusion is also concurrently engaged in the drilling of the deepwater
Chinguetti-1 exploration well in Mauritania.


                                                                   11 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