Operational Update

Fusion Oil & Gas PLC
02 December 2003

Fusion Oil & Gas plc



                          ('Fusion' or 'the Company')

                               Operational Update

                  Ntem Deepwater Exploration Licence Cameroon

Fusion announces that its operating subsidiary, Fusion Cameroon Limited, has
today signed an agreement with Woodside Energy Ltd ('Woodside') whereby Woodside
will be granted an exclusive option to acquire an interest in Fusion's Cameroon
Ntem deepwater exploration licence which covers an area of approximately 2,300
square kilometres in the deepwater of the Douala/Rio Muni Basin.

As a result of the agreement Woodside will have the exclusive right for a period
of three months to acquire an 80% interest in the Ntem licence.

In the event that Woodside elects to acquire the interest it will earn its stake
by refunding past costs associated with a 1,500 square kilometre 3D seismic
survey acquired in 2002 and will fund 100% of the cost of the first well.  On
completion of the first exploration well Woodside will have the option to fund a
second exploration well or to withdraw from the licence.  Once Woodside has
drilled a second exploration well its farmin obligations will have been
fulfilled.

The agreement is subject to the normal approval of the appropriate Government
Ministries and regulatory authorities and will terminate in the event of a
change of control in Fusion.

Fusion's Managing Director, Alan Stein commented:

'We are delighted to have an opportunity to enter into a new venture with
Woodside following the success of our projects in offshore Mauritania where they
are the Operator.'


02 December 2003

Enquiries


Fusion Oil & Gas plc
Peter Dolan, Chairman                 Tel:       [phone]

                                      Email:   [e-mail]
Alan Stein, Managing Director         Tel:      [phone]

                                      Email:  [e-mail]

College Hill Associates               Tel:       [phone]
James Henderson                       Email:  [e-mail]
Phil Wilson-Brown                     Email:  [e-mail]



Mr Williams and Mr Levison are appointees of Westmount Resources Limited which
has been acquired by Sterling Energy Plc.  They have not participated in the
Board's deliberations in relation to this press release.


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