Drilling Report

Fusion Oil & Gas PLC
11 October 2002




                              Fusion Oil & Gas plc



                          ('Fusion' or 'the Company')



                       Successful Chinguetti Appraisal Well



Fusion is pleased to announce that wireline log data has confirmed the presence
of oil-bearing sandstones over a gross interval of 114 metres in the
Chinguetti-4-4 appraisal well.



The Chinguetti-4-4 well is located 1.5 kilometres east of the 2001 Chinguetti-1
discovery, in the southern downthrown sector of the Chinguetti accumulation.



Since the last progress report, the Chinguetti-4-4 well has been drilled to a
total depth of 2,986 metres and wireline logging operations conducted.
Preliminary evaluation of wireline logs, pressure measurements and fluid samples
confirm the presence of several oil-bearing sandstones in the primary Tertiary
reservoir interval.



The Chinguetti-4-4 well and the original Chinguetti-1 discovery well have
together proven a minimum gross oil column of 280 metres in the downthrown
block.  There is likely to be significant additional oil column, as yet
untested, updip of the Chinguetti-1 well in the downthrown block.



The oil-water contact in the downthrown block has been identified by the
Chinguetti-4-4 well some 69 metres deeper than originally anticipated, and is
204 metres below the oil-water contact encountered in the upthrown block by the
recent Chinguetti-4-2  (which established a 94 metre gross oil column).



The thicker gross oil column and deeper than anticipated oil-water contact in
the Chinguetti-4-4 well, in combination with core and production testing
information from the Chinguetti-4-2 well, provide sufficient encouragement for
the joint venture to proceed with further development studies of the Chinguetti
accumulation without additional production testing of the reservoir interval.
After completing operations at the Chinguetti-4-2 and Chinguetti-4-4 wells the '
Deepwater Discovery' drillship will be released to conduct exploration drilling
in adjacent acreage.



Fusion has a 6% interest in PSC B which covers deepwater Block 4.



Jonathan Taylor, Exploration Director of Fusion, commented:

'Fusion is delighted that all three wells in its 2002 Mauritania drilling
campaign have encountered commercially significant hydrocarbon columns.



The confirmation of a deeper oil-water contact in the Chinguetti-4-4 well is a
positive result that will materially impact the value of the Chinguetti
accumulation.  This well has provided vital data for field development planning
and revealed important geological information that may generate additional
targets within the established Tertiary reservoir fairway'



11 October 2002




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


Fusion Oil & Gas plc

Jonathan Taylor, Exploration 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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