Final Results

Fusion Oil & Gas PLC
10 October 2001

                          Fusion Oil & Gas plc

             Preliminary Results for the 63 weeks to 30 June 2001

Fusion Oil & Gas plc announces its maiden results for the period from
incorporation on 12 April 2000 to 30 June 2001.

HIGHLIGHTS:

Corporate Activity

  * Registered as a public company on 1 August 2000.
  * Issued 30 million shares to raise £15 million pounds and gained
    admittance to the Alternative Investment Market (AIM) on 28 September
    2000.


Portfolio Expansion and Development

  * Formal award of two licenses in AGC (Senegal/Guinea Bissau) joint
    development area.
  * Won deepwater Ntem licence offshore Cameroon in competitive licensing
    round.
  * Relinquished North Tano shallow water/onshore licence in Ghana.


Exploration Program

  * Chinguetti-1 was a significant discovery offshore Mauritania,
    potentially opening up a new deepwater African petroleum province.
    Fusion's share of the costs associated with the two-well drilling
    programme were met by other companies.
  * Appraisal drilling of the Chinguetti discovery to establish
    commerciality is anticipated during 2002.
  * Further exploration drilling on prospects adjacent to Chinguetti is
    anticipated during 2002.
  * Operated an onshore gravity survey and obligation well in Ghana.
  * Acquired new 2D seismic data over six licence blocks, five of these
    licences are operated by Fusion.


Financial Performance

  * At 30 June 2001, £10 million cash in bank.
  * Loss per share of 5.69 pence.
  * Pre-tax loss £3.8m, in line with expected exploration programme costs.


Alan Stein, Managing Director of Fusion commented:


'Fusion's strategy of taking frontier acreage based on strong technical merit
has been vindicated by the Chinguetti-1 discovery (Fusion 6%). Ongoing
evaluation of newly acquired 2D seismic data over other licences in which
Fusion has very much larger equity holdings, and in which comparable
geological models can be invoked, suggests a very exciting period of
exploration lies ahead for Fusion during 2002 and 2003.'


                                                               10 October 2001


There will be a presentation to analysts at 10am British Summer Time which
will be broadcast over the Internet. This web cast can be viewed live on the
Company's website at www.fusionoil.com.au and will be available for download
at the conclusion of the presentation.


Enquiries:
Fusion Oil & Gas plc               Tel     [phone]
Alan Stein, Managing Director      Fax     [phone]
                                   e-mail [e-mail]

Fusion Oil & Gas plc               Tel     [phone]
Peter Dolan, Chairman              Fax     [phone]
                                   e -mail [e-mail]

College Hill Associates            Tel.    [phone]
78 Cannon Street                   Fax.    [phone]
London EC4N 6HH
Peter Rigby                        e-mail [e-mail]
James Henderson                    e-mail [e-mail]



The Annual Report will be available from 17 October 2001 by contacting the
Company Secretary at, 6-7 Pollen Street, London W1S 1NJ. (Telephone
020-7495-5916 or email [e-mail])


The financial information set out in this announcement does not constitute the
Company's statutory accounts for the year ended 30 June 2001. The statutory
accounts for the year ended 30 June 2001 will be finalised on the basis of the
financial information presented by the Directors in this preliminary
announcement and will be delivered to the Registrar of Companies following the
Company's annual general meeting.




                             CHAIRMAN'S STATEMENT

It gives me great pleasure to present the preliminary results for the 63 week
period ended 30 June 2001. This is the first full year report of Fusion Oil &
Gas plc ('Fusion'), which gained a listing on the Alternative Investment
Market ('AIM') of the London Stock Exchange on 28 September 2000. Our first
year in the public domain has been extremely busy and successful.


Over three years had been spent building a portfolio of oil exploration
licence interests in a predecessor Australian company, Fusion Oil & Gas NL.
The management, with the assistance of its corporate advisers, then
restructured that company at the start of this reporting year into Fusion,
prior to its AIM listing and the simultaneous raising of £15 million of new
capital.


Through a combination of patience, diligent technical work and admittedly some
serendipity, Fusion has been rewarded with early success. It is a very rare
event for a junior company's maiden well to be an oil discovery (Chinguetti-1
in Mauritania) that has the potential to open up a new oil producing province.
Our second well in Mauritania, Courbine-1A ST was a sub-commercial gas
discovery which has provided a wealth of positive information which will guide
future exploration effort in the region.  We believe the first two wells are
the beginning of a long running exploration and appraisal program offshore
Mauritania, where Fusion has 6% and 3% equity interests in two large
Production Sharing Contract areas.


The results of the Mauritania drilling campaign are highly significant in
upgrading the prospectivity of Fusion's acreage to the south in The Gambia
(100% equity) and the Senegal/Guinea Bissau (AGC) blocks Cheval Marin (10%
equity) and Croix du Sud (88% equity).


Exploration is, of course, not without risk and our Fusion-1X well, drilled
onshore Ghana, was a disappointing dry hole. This obligation well was operated
by Fusion; no mean feat for a small team.


To ensure an active exploration drilling program over the next two to three
years, which will generate long-term growth for shareholders, the Company has
gathered 2D seismic data over six offshore licences. Early indications are
that several material prospects have been defined.


With no current production or revenue stream, Fusion must balance its
expenditure with the funds available to ensure maximum exposure to exploration
success.  The expenditure recorded in this report is in line with predictions
made at the time of admission to AIM. It is kept under continual review in
terms of optimising the value that can be extracted from the maturing and
expanding portfolio. Where possible, the Company will seek to fund further
exploration by farming out part of the equity in its licence to competent
operating companies, as was the case with the first two wells in Mauritania.


The Group recorded a loss on ordinary activities after taxation for the period
of £3,832,373 or 5.69 pence per Ordinary share. The loss includes the write
off of listing costs £885,411 and £2,804,806 of written off capitalised
exploration costs on relinquishment of the exploration permit in Ghana. At
year end the Company had funds available of approximately  £10 million.


Needless to say, the staff who have been working in Fusion over the formative
years have derived considerable satisfaction from having performed much of the
original technical work which has led to a significant discovery; their
tireless efforts need to be acknowledged.


Your Board of Directors continue to be confident for the future and consider
that Fusion's undrilled portfolio of prospects and leads has very substantial
value.  The Company's management will be striving over the next year to
identify and demonstrate that potential, mainly with 2D and 3D seismic data,
so as to maximise the value of the Company's licences and to ensure that our
share price fully reflects that value.


Peter Dolan
Chairman       10 October 2001




                            OPERATIONAL HIGHLIGHTS


Mauritania:   PSC A and PSC B (Production Sharing Contract)
Equity: PSC B 6%
        PSC A 3%

In May 2001 Fusion's first exploration well, Chinguetti-1 (Fusion 6%), was
completed as an oil and gas discovery.  The results of the well matched the
pre-drill predictions for a success case and have profound commercial
significance for the Company's interests in PSC A, PSC B and elsewhere in the
region.  In July the Company's second exploration well in Mauritania,
Courbine-1A ST, (Fusion 6%) was completed as a sub-commercial gas discovery.
These wells have provided a wealth of information which will be used to
de-risk future exploration drilling in the area.


PSC A and PSC B are located offshore the Republic of Mauritania, Northwest
Africa. These large licences cover a total area of 21,150 square kilometres
and extend from the coastline to water depths in excess of 2,000 metres.
Previous exploration in Mauritania (1969-1991) resulted in the drilling of 11
near shore wells; 8 in water depths less than 200 metres. Hydrocarbon shows
were encountered in the majority of these wells.


In August 1998 Woodside Mauritania Pty Ltd ('Woodside') and British-Borneo
International Ltd ('British Borneo') signed a farm-in agreement to both PSCs,
whereby the Fusion interest would be free-carried through the initial 2D
seismic acquisition phase and through the drilling of two offshore wells.
Both PSC's are operated by Woodside.  British Borneo has subsequently been
acquired by Agip.


PSC A was renewed for a second three year term in August 2001 and as a
consequence in accordance with the terms of the licence agreement the PSC A
Joint Venture relinquished 25% of the permit area.


In December 2000 the Company announced that the joint venture had committed to
drill at least two exploration wells using the ENI owned rig Scarabeo-7 on
assignment from Agip.  Both wells are in PSC B although by prior agreement
with the Government the first well was deemed to have satisfied the work
obligations for PSC A.


The first well, Chinguetti-1, drilled in 800 metres of water, was completed in
May 2001 as an oil and gas discovery.   The Chinguetti prospect is an
anticlinal feature overlying a salt dome.  The well intersected several oil
bearing sandstones in the Tertiary primary objective over a 120 metre gross
hydrocarbon column without encountering an oil-water contact.  A shallower
secondary objective contained gas bearing sandstones over a 7 metre interval.
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.  The oil gravity is in the range 25-300 API in line with
pre-drill predictions.


The Chinguetti-1 oil discovery demonstrates for the first time that a fully
functioning petroleum system exists in the Mauritanian deepwater basin.  The
data and hydrocarbon samples obtained from the well are now being subjected to
detailed evaluation, prior to making a decision on future work required to
delineate the size of the Chinguetti-1 oil discovery.  Initial indications are
that the results with regard to the target prospect are in line with the
pre-drilling prognosis for a success case.  There are several prospects within
a 20 kilometre radius of Chinguetti-1 which could probably be developed from
central infrastructure.  This has the potential to significantly improve the
economics of field development.


The second well Courbine-1A ST (Fusion 6%), drilled in approximately 1,300
metres of water, was completed in July 2001 as a sub-commercial gas discovery.
The Courbine prospect consists of Cretaceous channel sandstones within a
structural closure at an approximate depth of between 3,750 metres and 4,000
metres in an anticlinal feature overlying a compressional toe-thrust.  Upper
Cretaceous sandstones comprising the primary reservoir objective between 3,800
metres and 4,000 metres are interpreted to be water bearing with minor
hydrocarbon shows.  Tertiary sandstones comprising a secondary reservoir
objective above 3,184 metres are interpreted to contain a 9 metre gas column.


The Courbine-1A ST well reached a total depth of 4,452 metres.  The well was
deepened beyond its planned total depth of 4,000 metres to obtain additional
geological information.  Although not a commercial success the Courbine 1A ST
well has demonstrated that various key elements of the petroleum system are in
place.  The information provided by both wells will be critical in guiding
future exploration drilling.


In January 2001 Woodside (the Operator) published an independent expert's
report prepared by leading industry consultants, DeGolyer and MacNaughton
which listed over 30 prospects and leads in PSC A & B with cumulative
un-risked prospective reserves in excess of 5 billion barrels.  The report
estimated mean non-risked recoverable reserves in the primary objective of the
Chinguetti prospect to be 180 million barrels.  There were significantly
larger prospects identified in the DeGoyler and MacNaughton report however
both Chinguetti and Courbine were chosen with a view to providing maximum
information about the various petroleum systems that are thought to be present
in the basin while at the same time testing potentially economic reserves.


During the remainder of 2001 and into 2002 the Mauritania joint venture will
be examining the wealth of information that has been gathered during the
recent drilling.  This information will improve understanding of the petroleum
system and has the potential to reduce risks associated with future drilling
significantly.  During 2002, subject to the approval of the Mauritania Joint
Venture, one or two appraisal wells are anticipated on the Chinguetti
structure to determine the extent of the accumulation and the quality of the
reservoir.  In addition, and once again subject to  Joint Venture approval,
one or two exploration wells are expected to be drilled in the vicinity of
Chinguetti to establish the potential for additional reserves which could be
developed from central infrastructure.  A further round of exploration
drilling is anticipated during 2003 which will test prospects which lie beyond
the tie-back radius to Chinguetti.



The Gambia: Deepwater Petroleum Production Licence (PPL)
Equity:     Fusion 100%


The licence covers approximately 5,250 square kilometres extending from the 50
metre bathymetric contour to beyond 2,000 metres.  The Gambia has been
sparsely explored since the onset of exploration in the region in the late
1960's. The only well, drilled offshore The Gambia (Jammah-1, 1979) was a test
of a conventional shallow water shelf play and encountered viable reservoir
horizons and good source rocks but only very minor hydrocarbon shows.


In December 1999 the Company acquired 1,000 kilometres of 2D seismic data over
the western half of the Gambian licence.   The new data confirmed the presence
of large prospective Upper Cretaceous intra-slope features and, for the first
time, identified the presence of toe-thrust related salt diapirism at the base
of the continental slope.


Specialised processing of the 1999 data has identified large areas of
potentially sand-prone Upper Cretaceous sequences on the continental slope
that could be effective reservoirs.  These intra-slope sequences are analogous
to recently proven play concepts in Equatorial Guinea and deepwater Gulf of
Mexico.   Although high risk, these reservoirs are clearly imaged using
seismic attribute analysis and have the potential to contain significant
reserves.


In February 2001 the Company announced the completion of a second 2D seismic
survey of approximately 720 kilometres designed to detail the potentially
prospective toe-thrust related structures identified by the 1999 survey.
These data have confirmed the presence of a four way dip-closed structure at
the base of the continental slope which lies in a favourable position to be
charged by the same potential source rocks which are now proven to be
effective in Mauritania.


The Company is planning to complete an integrated evaluation of its 2001
seismic campaigns in The Gambia, Senegal and Guinea-Bissau before seeking
partners to share the cost of 3D seismic data which will be used to identify
potential drilling locations.



AGC:           Croix du Sud Convention de Recherche
               Cheval Marin Convention de Recherche

Equity:        Croix du Sud - 88% (Operator)
               Cheval Marin - 10%


The Agence de Gestion et de Cooperation entre la Guinee-Bissau et le Senegal
('AGC') is the Joint Commission established by the Governments of Senegal and
Guinea-Bissau to administer petroleum and fishing activity within their shared
maritime border zone.


In August 2000 the Company announced the signature of the Croix du Sud
Convention covering what had previously been known as AGC Block 4.  This
Convention covers an area of approximately 3,550 square kilometres.  Fusion is
the operator with an interest of 88%.  The remaining 12% (carried) is held by
the AGC.


In September 2000 the Company signed the Cheval Marin Convention incorporating
what had previously been known as AGC Blocks 1, 2 and 3.  The Cheval Marin
Convention covers an area of approximately 6,300 square kilometres.  AGIP is
the Operator, with an interest of 75%.  Fusion has 10% and the remaining 15%
(carried) is held by the AGC. The award of both Conventions received
Presidential ratification in February 2001.


Several deepwater play systems were identified by Fusion during pre-award
technical studies. The presence of large quantities of biodegraded oil
immediately adjacent to these blocks in the Dome Flore and Dome Gea
accumulations demonstrates the presence of a prolific petroleum source rock in
this area.  These accumulations are regarded as uneconomic due to the
biodegraded nature of the oil which is thought to result from the shallow
depth of the reservoir only 400m beneath the seabed.  Technical studies
carried out prior to licence award, under the auspices of a Technical
Cooperation Agreement, suggested that all the necessary elements of a
successful petroleum system should be present to the west of the Dome Flore
area in deepwater.  The petroleum system in the AGC area is interpreted to be
broadly analogous to that encountered in Mauritania where our recent drilling
results confirm that the source rock thought to have generated the Dome Flore
oil is present and effective in deepwater.   Several large leads, some with
possible DHI's (Direct Hydrocarbon Indicators), have already been delineated
on the existing seismic dataset.  These will require additional seismic data
(probably 3D) to mature them to drillable status, however they have the
potential to contain significant quantities of hydrocarbons.


Seismic operations began in March 2001 with the acquisition of 1,300
kilometres of 2D seismic data in Cheval Marin which was immediately followed
by the acquisition of 1,000 kilometres of 2D seismic data in Croix du Sud.
The new data from Croix du Sud has revealed, for the first time, the presence
of large salt diapirs and related toe-thrusts at the base of the continental
slope similar to those already imaged in the adjacent Cheval Marin licence.


This data will be used in conjunction with the existing seismic data to detail
a prospect and lead inventory for both permits which will high-grade areas for
further studies prior to maturing potential drilling locations.



Ghana:    North Tano Exploration Licence
Equity:   90.0% (Operator)

In May 2001 the Company announced that the Fusion-1X well in the North Tano
exploration licence had been plugged and abandoned without encountering
significant hydrocarbons.


Although clearly a disappointing commercial result, it is a matter of
considerable satisfaction that drilling operations were conducted in a remote,
sensitive area within budget and with minimal environmental impact.  The
Company received an unsolicited letter of commendation regarding its
operations from the Project Leader of the nearby Akansa Conservation Area
which is part of the EU funded Protected Areas Development Program, itself
organised by the Wildlife Division of the Forestry Commission, Ghana.


The Fusion-1X well provided useful information which has materially improved
understanding of the North Tano license area.  Whilst the combination of
existing infrastructure, power demand plus demonstrable prospectivity
continues to make the North Tano area attractive for exploration, Fusion
believes that the risk-reward balance is inappropriate for the Company at this
time.


As a consequence of intense competition for funds across the portfolio, both
as a result of our own exploration success in Northwest Africa and following
successful drilling in the vicinity of our permits in Gabon and Cameroon, the
Company decided to relinquish its North Tano licence.



Cameroon:  Ntem Petroleum Concession Contract
Equity:    100% (Operator)


In March 2001 the Company announced that it had signed a Petroleum Concession
Contract (PCC) with the Republic of Cameroon. The Ntem contract area covers
approximately 2,050 square kilometres. Water depths range from less than 1,000
metres to over 2,000 metres.  Fusion was awarded the Ntem contract as a result
of an application made during a competitive bidding round which closed in June
2000.


Fusion holds 100% equity in the Ntem contract. The contract has three
exploration terms of two years.  There is an obligation to acquire 2D or
possibly 3D seismic data over the Ntem permit in its first two-year
exploration term to further evaluate several prospective features, some with
possible DHI's, that have already been identified on the existing seismic
data.  Fusion acquired a block-wide 2D seismic survey during March 2001 and
has recently taken delivery of the final processed data.  The new data are of
excellent quality and evaluation with particular emphasis on interpretation of
the significance of seismic attributes is underway.  These data will be used
to detail a prospect and lead inventory which will high-grade areas for
further studies prior to maturing potential drilling locations.  This survey
has fulfilled the Company's work program obligations for the first exploration
period.


The Ntem permit is situated in the southern Douala/Rio Muni Basin and lies
adjacent to the northern border of the Equatorial Guinea territory of Rio
Muni. This area has recently been the focus of considerable industry attention
following the 1999 discovery of the deepwater Ceiba field, in Block G offshore
Rio Muni. The Ceiba field is located 100 kilometres south of the Ntem permit
in water depths of 700 metres.  Production from Ceiba commenced in 2001, some
14 months after the initial discovery, with a current production rate of
50,000 bopd.  Reserves of the field are estimated by the operator of the Block
G joint venture, to be approximately 300 million barrels.  The field produces
from Upper Cretaceous sandstone reservoirs uplifted by a compressional
toe-thrust.


During June 2001, following three unsuccessful tests of structural closures in
Block G, it was announced that the Okume-1 well had encountered a 125 metre
gross oil column in an Upper Cretaceous stratigraphic onlap play a short
distance to the east of the Ceiba Field.  Reserves for the Okume-1 discovery
were estimated by the operator  prior to drilling to be in the range 25-250
million barrels.  A significant feature of the Okume discovery was the
successful use of seismic attributes to predict the presence of hydrocarbons.


Late in June 2001 it was further announced that the Oveng-1 exploration well,
also in Block G, targeting an Upper Cretaceous intra-slope mound a short
distance to the east of Okume-1 had encountered a 135 metre gross oil column.
Pre-drill estimates of reserves by the operator were in the range 50-150
million barrels.  The Oveng-1 result confirmed the effectiveness of seismic
attributes to define prospective stratigraphic traps in the southern Douala/
Rio Muni Basin, and provided valuable information regarding the prospectivity
of the Ntem permit.  The recent Block G discoveries also have a bearing on
Fusion's interests in The Gambia and Senegal/Guinea Bissau (AGC) where
analogous Upper Cretaceous stratigraphic onlap and intra-slope mounded plays
have been recognised.


Industry activity is high in the licences immediately surrounding the Ntem
permit. To the north of Ntem in the Nyong permit an exploration well is
proposed late in 2001.  A farm-in was recently announced to the Equatorial
Guinea Block L deepwater licence, where exploration drilling is scheduled
prior to end 2002.  Extensive 3D seismic surveys have recently been completed
along the borders of the Ntem permit to the east in shallow-water and to the
south in the deepwater Equatorial Guinea Block H licence.


Fusion will complete an evaluation of the 2D seismic survey acquired in March
incorporating relevant information from the wells in Equatorial Guinea before
seeking partners to share the cost of acquiring 3D seismic data to identify
potential drilling locations.



Gabon:   Iris Marin and Themis Marin PSC's
Equity:  38.57%

The PSC's (Production Sharing Contracts) covering these areas were signed
between the Republic of Gabon and Fusion on 12 November 1999, and ratified by
Parliament on 30 December 1999. Fusion owns a 38.57% interest and operates the
Iris Marin and Themis Marin exploration permits on behalf of the Iris and
Themis Joint Ventures. Both permits cover offshore coastal areas, with water
depths ranging from the surf zone to 50 metres. The combined area under
licence is approximately 1,800 square kilometres.


Fusion's interests lie within the prolific Southern Gabon Basin which contains
over 1.6 billion barrels of recoverable oil accounting for approximately half
of the known reserves of Gabon. The stratigraphy of the basin is divided into
pre-salt and post-salt sequences; Neocomian-Aptian continental rift deposits
separated from an overlying Albian and younger marine drift sequence by a
thick succession of Aptian salt.  The primary reservoir objectives lie in the
pre-salt sequence.


Iris Marin lies immediately offshore of Shell's Gamba and Ivinga fields, which
have ultimate recoverable reserves of approximately 230 and 120 million
barrels respectively.  To the southeast of Themis Marin are the Lucina, M'Bya
and Mwengui Fields, which have combined reserves of 150 million barrels.
Previous exploration in both Iris Marin and Themis Marin has been critically
affected by poor seismic imaging of sub-salt reservoirs with wells failing to
test valid structures due to inaccurate sub-salt mapping.  Advances in seismic
technology mean that it may now be possible to map sub-salt structure with a
greater degree of accuracy.  Fusion intends to use the latest depth imaging
technology in these permits to try and ensure that future drilling will test
valid structural closures.  This strategy has been successfully used recently
in adjacent permits where modern seismic data and depth imaging technology
have been a key factor in successful drilling campaigns.


In April 2001 it was announced that the Olowi Marin-1 exploration well in the
Olowi Marin licence located between the Iris Marin and Themis Marin had
encountered a 22 metre oil column which flowed at a rate of 2,100 barrels of
oil per day.  Estimates of reserves in the range 100-300 million barrels have
been quoted by the operator.   The Olowi Marin-1 well was located on the
oil-rim of a previous discovery which was thought to be un-economic and
illustrates the potential impact of modern seismic imaging technology in this
basin.  In June 2001 it was announced that the Etame-4 appraisal well
approximately 15 kilometres to the south of Themis Marin had encountered a 24
metre oil column and confirmed the economic viability of the Etame Field which
is planned to come on stream late in 2002 at an initial rate of 12,000 barrels
of oil per day.  Once again the use of modern seismic data to define the
nature of the field accurately appears to have been a key factor in the
successful appraisal of this discovery.


During the year much of the existing data over the permit areas has been
recovered and reviewed.  This has included reprocessing gravity and magnetic
data to better define sub-salt structural elements and to prioritise areas for
future seismic activity.  During July 2001 the Company acquired trial 2D
seismic lines using a shallow water seismic vessel.  The trial was designed to
enable optimisation of acquisition and processing parameters of more extensive
seismic operations which are anticipated later in 2001.  The results of the
trial will also be used to optimise a reprocessing sequence for some of the
existing seismic data in the area.


It is planned to have prospects matured to drillable status during 2002.



                    CONSOLIDATED PROFIT AND LOSS STATEMENT
                   FOR THE 63 WEEK PERIOD ENDED 30 JUNE 2001

                                                                 30 June 2001 
                                                                  (Unaudited)
                                                                      £

Operating Costs
Flotation costs expensed                                           (885,411)
Exploration costs written off                                    (2,804,866)
Other operating costs                                              (620,122)


Operating loss                                                   (4,310,399)

Interest receivable and similar income                               478,026

Loss on ordinary activities before taxation                      (3,832,373)

Tax on loss on ordinary activities                                        -
Loss on ordinary activities after taxation                       (3,832,373)

Loss per Ordinary share

-basic                                                            5.69 pence

-diluted                                                          5.70 pence



                        CONSOLIDATED BALANCE SHEET
                              AS AT 30 JUNE 2001

                                               Note               30 June 2001
                                                                   (Unaudited)
                                                                         £

Fixed Assets
Intangible assets                                                     2,926,332
Tangible assets                                                          47,752

                                                                      2,974,084

Current Assets
Debtors                                                                  39,165
Investments                                                           9,080,000
Cash at bank and in hand                                                918,947

                                                                     10,038,112

Creditors
(amounts falling due within one year)
Creditors                                                               850,260

Net Current Assets                                                    9,187,852


Total Assets less current liabilities                                12,161,936


Capital and reserves
Called up share capital                          2                      925,380
Share premium account                            2                   15,068,929
Profit & loss account                                               (3,832,373)


Equity shareholders' funds                                           12,161,936



                        CONSOLIDATED CASH FLOW STATEMENT
                  FOR THE 63 WEEK PERIOD ENDED 30 JUNE 2001

                                                           Note    30 June 2001 
                                                                    (Unaudited)
                                                                          £

Net cash inflow from operating activities                    A          265,354

Returns on investing & servicing of finance
  Interest received                                                     478,026

Capital expenditure & financial investment
  Purchase of tangible assets and expenditure on exploration        (5,004,772)


Acquisitions & disposals
  Net cash acquired with subsidiary                                     351,453

Cash outflow before use of liquid resources & financing             (3,909,939)


Management of liquid resources
  Cash placed on deposit                                            (9,080,000)

Net cash outflow from management of liquid resources                (9,080,000)

                                                                    
Financing
  Net Proceeds from share issues and issue of                        13,908,886
  Convertible note

Net cash inflow from financing                                       13,908,886


Increase in cash for the period                                         918,947



Note A:


Reconciliation of operating loss to net cash 
outflow from operating activities

Operating loss                                                      (4,310,399)

Depreciation charges                                                      7,739
Write-off exploration expenditure                                     2,804,866
Flotation costs expensed                                                885,411
Increase in creditors                                                   671,655
Decrease in debtors                                                     206,082

Net cash inflow on operating activities                                 265,354



                       NOTES TO THE FINANCIAL STATEMENTS
                   FOR THE 63 WEEK PERIOD ENDED 30 JUNE 2001


1.     Summary of Accounting Policies

The principal accounting policies are summarised below.  They have all been
applied consistently throughout the period.

Basis of accounting

The accounts have been prepared under the historical cost convention, and in
accordance with applicable accounting standards and the Statement of
Recommended Practice 'Accounting for Oil and Gas exploration, development,
production and decommissioning activities'.

Basis of consolidation

The Group accounts consolidate the accounts of Fusion Oil & Gas plc
and its subsidiary undertakings drawn up to 30 June each year.  The results of
subsidiaries acquired or sold are consolidated for the periods from or to the
date on which control passed.  Acquisitions are accounted for under the
acquisition method.

2.     Called up share capital

                                                                   30 June 2001
                                                                         £
                                                                
   (a) Authorised:
       500,000,000 Ordinary shares of 1 penny each                    5,000,000
       25,000,000 'B' shares of 1 penny each                            250,000

                                                                      5,250,000
   (b) Called up allotted and fully paid

       92,538,001 Ordinary shares of 1 penny each                       925,380


During the year the Company allotted the following shares:

-     The Company was formed on 12 April 2000 with two subscriber shares
of £1 each.

-     On 16 June 2000 these shares were subdivided into 200 shares of 1
penny each.

-     On 18 July 2000 the Company completed the acquisition of 100% of
Fusion Oil & Gas NL by issuing 60,000,600 Ordinary shares to the shareholders
of Fusion Oil & Gas NL.

-     On 23 August 2000 the Company raised £425,000 in working
capital through the issue of a Convertible Note.  On 28 September 2000 the
Company issued a total of 1,062,500 Ordinary shares on conversion of the note.

-     On 28 September 2000 the Company raised a total of £15
million through the placement of 30,000,000 Ordinary shares of 1 penny each at
a premium of 49 pence per share with various institutions.

-     During the period the Company issued a total of 1,474,701 Ordinary
shares pursuant to its obligation under its take over offer for Fusion Oil &
Gas NL to issue one of its shares for each Partly Paid share in Fusion Oil &
Gas NL upon those shares being paid up.


                              Corporate Directory

Directors
Peter Dolan                     Alan Stein            Jonathan Taylor
Chairman                        Managing Director     Exploration Director


Patrick O'Connor                Richard Stabbins      Derek Williams
Non Executive Director          Non Executive         Non Executive Director
                                Director

Company Secretary
Raymond Godson


Australian Registered Office    UK Representative     UK Registered Office
and Principal Office            Office                6-7 Pollen Street
Level 2                         8 Old Lodge Place     London
Scott House                     St Margarets          W1S 1NJ
46-50 Kings Park Road           Twickenham            United Kingdom
West Perth  6005                TW1 1RQ
Western Australia               United Kingdom

Registrars                      Solicitors            Solicitors
Capita IRG Plc                  As to Australian Law  As to English Law
Bourne House                    Blakiston & Crabb     Norton Rose
34 Beckenham Road               1302 Hay Street       Kempson House
Beckenham                       West Perth  6005      Camomile Street
Kent BR3 4TU                    Western Australia     London EC3A 7AN
United Kingdom                                        United Kingdom


Corporate Brokers/Advisers      Corporate Brokers     Auditors
Investec Henderson              Old Mutual Securities Deloitte & Touche
Crosthwaite                     2 Lambeth Hill        Chartered Accountant &  
2 Gresham Street                London EC4V 4GG       Registered Auditors
London EC2V 7QP                 United Kingdom        Hill House  
United Kingdom                                        1 Little New Street
                                                      London EC4A 3TR


Bankers                          Bankers             Internet & email addresses:
Australia:                       England:            Email:
HSBC Bank Australia Limited      HSBC Bank plc       [e-mail]
188 - 190 St George's Terrace    Poultry & Princes   Web:
Perth  6000                      Street              www.fusionoil.com.au
Western Australia                London  EC2P 2BX
                                 United Kingdom   

                                    

Note 1.  Fusion Oil & Gas plc is an international oil and gas exploration
company, with extensive interests in Africa. The Company has adopted a dual
strategy of frontier deepwater exploration in combination with shallow water
or onshore exploration in proven petroleum provinces using modern exploration
technology which has the ability to realise hitherto unrecognised potential.


Note 2.  A presentation by Managing Director Dr Alan Stein announcing these
results and the Company's program for the next 12 months will be the subject
of a live web cast at 10.00 am BST on 10 October 2001.


The web cast can be viewed live on the Company's website at
www.fusionoil.com.au and will be available for download at the conclusion of
the presentation.