Drilling Report

Fusion Oil & Gas PLC
27 August 2002





                              Fusion Oil & Gas plc



                          ('Fusion' or 'the Company')



                        Routine Drilling Progress Report



Woodside Mauritania Pty Ltd., Operator of the Mauritania PSC B Joint Venture,
reports that on 27 August the Chinguetti-4-2 step out exploration well is
currently preparing to carry out a production test over the primary objective.



Since the last report, the wireline evaluation logging was completed at the
total depth of 2655m and samples of oil were recovered from the primary
objective interval, and gas from a shallower 3m gas sand.



All reported depths are referenced to the rig rotary table.



Fusion has a 6% interest in PSC B.



For further details please refer to the company's web page www.fusionoil.com.au
or contact:



27 August 2002


Fusion Oil & Gas plc

Alan Stein, Managing Director               Tel:   [phone]

Australia                                   Fax:   [phone]

                                            e-mail:  [e-mail]


Peter Dolan, Chairman                       Tel:    [phone]

England                                     Fax:   [phone]

                                            e-mail:  [e-mail]


College Hill Associates

Peter Rigby                                 Tel:   [phone]

James Henderson                             Fax:   [phone]

                                            e-mail:  [e-mail]






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